KUALA LUMPUR – The newly-announced Rahmah Insurance and Rahmah Takaful packages can be considered a form of “free” national insurance provided by the unity government in collaboration with the private sector.
Head of Social, Law and Human Rights at Emir Research Jason Loh said the initiative, which allows Malaysians, especially the B40 group, to subscribe to insurance coverage or personal accident takaful coverage for as little as RM5 a month or RM36 a year, is indeed a financial and socio-economic benefit to the rakyat.
“The Rahmah Insurance initiative by the Madani government is a highly commendable policy aimed at alleviating the financial burden of the rakyat, especially the B40.
“Basically, the price of the annual premiums, which are very low, means it is effectively ‘cost-free’ for the rakyat and so can well be considered a form of ‘free’ national insurance provided by the government in collaboration with the private sector.
“The B40 and lower M40 as well as the self-employed and independent contractors such as the gig delivery riders will benefit from this initiative as many wouldn’t be able to enjoy health insurance coverage due to a lack of financial resources or aren’t covered by their employer,” he said.
He said the country’s current insurance and takaful penetration rate of 56.1%, compared to 100% in developed countries, is a worryingly unsatisfactory rate.
Therefore, Loh said that the Rahmah Insurance and Takaful packages would definitively help to increase the number of insurance holders.
“It is definitely a strategic and key initiative in bolstering and boosting the coverage rate in the country,” he added.
Domestic Trade and Cost of Living Minister Datuk Seri Salahuddin Ayub recently announced several affordable insurance and takaful packages provided by Allianz General Insurance Bhd, Etiqa General Insurance Bhd, and Etiqa General Takaful Bhd.
Loh suggested that the federal government needs to synergise and strategically collaborate with certain states, namely Selangor, Penang, and Johor, which have very high urban populations, to ensure the insurance initiative coverage also allows for healthcare access to private hospitals, especially those owned by state government-linked companies such as Selgate Corporation and KPJ.
“The Rahmah Insurance initiative should also be progressively expanded to cover the rakyat from cradle to grave, for example, by removing any qualifying limits in terms of age.
“Currently, it is available for those aged between 16 and 65 and can only be renewed until the policyholder is 70 years of age.
“For the self-employed, independent contractors, and those with low income coupled with low savings, there should also be a series of schemes that allow for payouts for loss of income due to incapacitation and other serious illnesses.
“For low-income earners, this should complement their Employment Insurance Scheme and ensure that they don’t fall into the debt trap,” he said.
Meanwhile, Malaysian e-Hailing Alliances chief activist Jose Rizal welcomed the initiative, which gives more options to those working in the gig economy, including e-hailing and p-hailing to get additional protection.
He also asked the government to improve the Self-Employment Social Security Act (Act 789), which provides almost equal social protection for those in the sector classified as self-employed through the Self-Employment Social Security Scheme of the Social Security Organisation. – Bernama, June 30, 2023
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