MANCHESTER, Oct 6 -- Ammetlife Takaful Bhd (AmMetLife Takaful) expects its takaful business to record a 38 per cent growth by the end of its financial year ending March 31, 2020, supported by continuous campaigns and cross-selling through its bancatakaful partner, Ambank (M) Bhd.
AmMetLife Takaful chief executive officer Noor Azam Mohd Yusof said to-date, the company has recorded about 13 per cent year-on-year growth compared with the same period in 2018.
“This was mainly supported by regular contribution products distributed through AmBank branches and the agencies," he told Bernama when contacted.
Apart from distributing credit-related takaful product, Ambank is also distributing AmMetLife Takaful products such as Protect Secure-i Murni and FlexiSecure-i, and has launched a new medical rider, HealthCare Choice-i Rider, which comes without any lifetime limit.
Meanwhile, commenting on the upcoming 2020 Budget, Noor Azam said the budget should include a higher tax deduction allowance on insurance or takaful product purchases to boost insurance product take-up rates in line with the government’s aspirations to promote a financially inclusive society.
"The current tax relief of RM3,000 per year life for insurance premiums for individuals can be reviewed to increase the adoption rate.
“Over time, these incentives will boost the public’s awareness on life insurance and takaful, and improve the adoption rate," he added.
In January this year, Prime Minister Tun Dr Mahathir Mohamad had launched mySalam, the national Bottom 40 (B40) protection scheme to boost the take-up rate for insurance and takaful products among the B40 group.
The scheme, which was set up with a substantial seed fund of RM2 billion, is expected to benefit 3.69 million people aged between 18 and 55 in the group.
"AmMetLife Takaful started exploring the possibility of providing micro takaful schemes to the general public with the B40 segment in mind since the end of 2017.
“We even introduced iMeriah, a pilot insurance scheme for Mydin’s loyal customers, and we are now looking for feasible ways to scale up this concept targeting the B40 segment, together with a financial literacy agenda," added Noor Azam.