KUALA LUMPUR (Nov 24): Malaysia-based insurance companies have rolled out ten affordable protection plans under Perlindungan Tenang — a national initiative to serve the needs of all Malaysians — which is supported by Bank Negara Malaysia.

The Life Insurance Association of Malaysia (LIAM), Malaysian Takaful Association (MTA) and General Insurance Association of Malaysia are jointly committing to develop a sustainable market where insurers and takaful operators offer product choice through various distribution channels, good protection value, and administrative ease during the purchase and claims process.

The General Insurance Association of Malaysia is also known as Persatuan Insurans Am Malaysia (PIAM).

The first batch includes six life insurance products, three family takaful products and one general insurance product, according to the jointly issued statement by LIAM, MTA and PIAM today.

"Riding on three basic criteria of being affordable, accessible and simple, the products available under Perlindungan Tenang were developed by insurers and takaful operators to enhance financial inclusion of underserved segments in Malaysia, particularly the bottom 40% of household (B40)," it said.

The newly launched initiative is aimed to reach out to 8 million working-age Malaysians and over 700,000 micro enterprises that currently need insurance and takaful protection against key risks in life.

"Ultimately, it would help to fulfil the nation's aspiration of reducing the protection gap and insuring 75% of the population by 2020 with insurance and takaful protection," it said.

Through the basic protection provided under Perlindungan Tenang initiative, Malaysians can now protect themselves and families against key risks in life with premiums and contribution from only a few ringgit per month.

Additionally, it also offers easy claims processes where claims will be paid out within five working days upon full documentation.

"In the next few months, more products from the insurance and takaful companies will be added to the list to serve the various needs of Malaysians," it said.