BUSINESS

LIFE INSURANCE, TAKAFUL FAMILY OPERATORS EXTENDS DEFERMENT PAYMENT INITIATIVE TO JUNE 30

26/03/2021 06:18 PM

KUALA LUMPUR, March 26  -- All life insurance companies and family takaful operators have extended the deferment of premium/contribution payment initiative for policy/certificate holders affected by the COVID-19 to June 30, 2021.

In announcing the move, Life Insurance Association of Malaysia (LIAM) and the Malaysian Takaful Association (MTA) said policy/certificate holders are advised to check with their life insurers or takaful operators on their eligibility for this initiative.

During the period, operators will continue to provide insurance and takaful protection to the affected policy/certificate holders, including those who are unable to earn an income, giving them a grace period of three months (or 90 days) to pay premium/ contribution due.

“If the application by the policy/certificate holder is approved, the policy/certificate will remain in force during the deferment period.

"Once the deferment period ends, contractual provisions regarding premium/contribution payment will resume as usual. This deferral is a one-time exercise only, although insurers or takaful operators can allow more liberal deferral at their discretion,” LIAM president, Loh Guat Lan said in a statement today.

The premium/contribution deferment option is applicable for annual, half-yearly, quarterly and monthly premium/ contribution modes of payment.

Loh said this flexibility may be provided by life insurers and family takaful operators through a no-lapse guarantee, an extension of grace period or any other means that will maintain the policy/ certificate intact during the deferment period.

Additionally, life insurers and family takaful operators will also extend the period where policyholders and takaful participants affected by COVID-19 can reinstate a policy/certificate that has lapsed, as well as giving them options in meeting their premium/contribution payments and maintain their policies/certificates.

Loh said this may include changes in the sum assured/covered, adjustments to the premium/contribution structure and conversion into a paid-up policy.

Additionally, life insurers and family takaful operators will also waive fees and charges imposed for changes made to policies/certificates.

-- BERNAMA

 


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