KUALA LUMPUR, Nov 7 -- Budget 2021 spells out various initiatives for Takaful and insurance in an effort to increase risk protection for Malaysians.

In a statement today, Malaysian Takaful Association (MTA) chairman Muhammad Fikri Mohamad Rawi said by providing Financial Assistance to B-40 to purchase Perlidungan Tenang products, with the stamp duty exemption until 2025, this can help the low-income group get Takaful and insurance coverage.

"With basic protection under Perlindungan Tenang, Malaysians can now protect themselves and their families from the major risks of living with a takaful contribution of just a few ringgit a month,” he said, adding that this not only benefit the industry players, but also the people in times of emergency.

To date, four takaful operators are offering Perlidungan Tenang products, namely AIA PUBLIC Takaful Bhd, Prudential BSN Takaful Bhd, Takaful Ikhlas Family Bhd and Etiqa Family Takaful Bhd.

Muhammad Fikri said Budget 2021 has proposed withdrawal from Account 2 of the Employees Provident Fund (EPF) for participation in protection and critical illness coverage of the family takaful and life insurance.

“With this approval, it is expected to provide opportunities for Malaysians to seek takaful and insurance coverage. Certainly, it will increase the penetration rate of insurance and takaful in the country,” he said.

Muhammad Fikri noted various initiatives are also being actively undertaken by the takaful and insurance industry to promote the importance of protection for Malaysians.

The takaful industry will continue to support the government's efforts in ensuring that all Malaysians have takaful and insurance coverage in order to provide peace of mind in the event of a disaster, he added.

-- BERNAMA