KUALA LUMPUR: Financial assistance to facilitate insurance coverage for the B40 group, as outlined by the 2021 Budget, is crucial to protect low-income earners.
Malaysia Takaful Association (MTA) chairman Muhammad Fikri Mohamad Rawi said the allocation will also help sustain the insurance industry.
At the tabling of the 2021 Budget yesterday, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said that B40 social coverage will be implemented under the Tenang Protection Voucher Programme.
Each recipient will receive a RM50 voucher to purchase the Tenang Protection insurance product, which includes takaful life and accident insurance coverage.
"Coupled with the exemption of stamp duty until 2025, those from the low-income group can now enjoy takaful coverage.
"This will not only benefit industry players, but also the people in times of emergency," Muhammad Fikri said in a statement today.
To date, there are four takaful operators offering Tenang Protection products: AIA PUBLIC Takaful Berhad, Prudential BSN Takaful Berhad, Takaful Ikhlas Family Berhad and Etiqa Family Takaful Berhad.