Public awareness on takaful, insurance coverage still low

PONTIAN - Public awareness of the importance of having takaful and insurance protection is still low, as 60 per cent of the nation’s population does not have adequate takaful or insurance coverage for emergencies.

Deputy Finance Minister I Datuk Seri Ahmad Maslan said efforts to increase awareness of the importance of takaful protection must continue in schools, institutions of higher learning, Technical and Vocational Education and Training (TVET) institutions, as well as rural and urban areas.

"As such, the Takaful Masuk Kampung programme will continue to be held to boost financial literacy and provide exposure and explanation on takaful to ensure that we and our families are protected," he said at a press conference after officiating the programme here today.

Also present were Malaysian Takaful Association (MTA) chief executive officer Mohd Radzuan Mohamed and Pulai Sebatang State Assemblyman Hasrunizah Hassan.

Mohd Radzuan said the majority of those who do not have takaful and insurance coverage were rural residents.

"Take the flood disaster in 2021 as an example, only five per cent of the vehicles affected have flood protection. Of the RM6.1 billion total losses recorded, only RM2 billion were covered, putting pressure on the government to cover the balance.

"If the total losses had been fully covered by takaful, it would have reduced the amount of losses because the concept of takaful is to help each other and we have a large network to help people," he said.

Meanwhile, Hasrunizah said through the office of the Pulai Sebatang State Legislative Assembly, more than 100 people comprising hardcore poor residents and village heads were given takaful protection last year.

"Previously, we provided takaful protection to 947 election staff and today, another 277 are given takaful protection,” she said, adding that Ahmad, who is also the Pontian Member of Parliament, also contributed to providing takaful protection for tahfiz students in the area.

Held in Pontian, the Takaful Masuk Kampung programme organised by the MTA attracted about 2,000 visitors, featuring exhibitions as well as sales booths. - BERNAMA