PETALING JAYA: All life insurance companies and family takaful operators have extended the three-month deferment premium/contribution payment initiative for policy/certificate holders who are financially affected by the pandemic to June 30, 2021, according to the Life Insurance Association of Malaysia (LIAM) and the Malaysian Takaful Association.
During this period, life insurers and family takaful operators will continue to provide insurance and takaful protection to the affected policy/certificate holders including those who are unable to earn an income to have a grace period of three months (or 90 days) to pay premium/contribution due.
The extension is in response to the need of affected policy/certificate holders who may continue to face financial difficulties during this recovery phase of the Covid-19 pandemic. However, policy/certificate holders are advised to check with their life insurers or takaful operators on their eligibility for this initiative.
LIAM president Loh Guat Lan said the impact of Covid-19 is huge and prolonged. As such, it needs to continue to safeguard the customers’ interest. The intended outcome is to enable policy/certificate holders to maintain their insurance/takaful protection coverage during this challenging period.
“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,” Loh said in a statement.
The premium/contribution deferment option is applicable for annual, half-yearly, quarterly and monthly premium/ contribution modes of payment. 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 maintain the policy/ certificate intact during the deferment period.
Source: The Sun Daily
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