B40 civil servants can buy vehicle takaful in installments – Saravanan

According to Saravanan, he was confident that the program would be able to help the government eradicate poverty among the people as more civil servants were able to reduce their financial burden.

KUALA LUMPUR: About 1.7 million civil servants, especially from the B40 group, now have the opportunity to buy or renew their vehicle takaful (insurance) in installments without any interest through the implementation of the MyezyCover Scheme introduced by the government today.

Human Resources Minister Datuk Seri M Saravanan said the syariah -compliant scheme was implemented with funding of RM100 million through the Social Security Organization (Socso), MyAngkasa Amanah Berhad (MAAB) and A Tech Insure Sdn Bhd (ATECH).

“At this early stage, the program is targeted at civil servants especially B40 before being extended to retirees (government) and private companies where they can buy insurance (vehicle takaful) in installments either monthly, every three or four months or all at once.

“When they make a lump sum payment, they will get a 10 per cent discount with the payment being through salary deduction by Angkasa,” he said at a press conference after witnessing the MyezyCover Scheme Agreement Signing Ceremony at Menara Perkeso here today.

At the agreement ceremony, Socso was represented by its Chief Executive Datuk Seri Dr Mohammed Azman Aziz Mohammed; ATECH was represented by Chief Executive Officer (CEO) Syed Alwi Mohamed Sultan while MAAB was represented by its Chief Executive Officer Faudzi Mt Din.

Saravanan said Socso’s involvement in the scheme was as an investor because the government was aware that there were civil servants, especially from the B40 group, facing a financial position that was just “enough” to buy their vehicle takaful.

“This situation has forced some of them to wait until they get a salary to buy vehicle takaful if the vehicle takaful period ends in the middle of the month.

“Some of these groups also have road tax (motor vehicle licenses) and insurance for borrowing Ah Long (unlicensed moneylenders) other than through cooperatives and using credit cards.

So looking at the loss of cash flow through this loan, I talked to the insurance sector company and was told they have no obstacle to give installments as long as there is a third party can pay (the fee) first. So I have discussed with Socso and other parties later to join the program as an investor, “he said.

Saravanan is confident that the program will be able to help the government eradicate poverty among the people as more civil servants are able to reduce their financial burden.

Meanwhile, ATECH Chairman Tan Sri Abu Kassim Mohamad in a statement said with installments as low as RM50 a month, the MyezyCover Scheme could help civil servants manage their cash holdings to be used on other expenses.

-english translation -faizal
-BERNAMA

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