KUALA LUMPUR: The Life Insurance Association of Malaysia (LIAM) is working closely with Bank Negara Malaysia (BNM) and the Ministry of Health (MOH) to develop an affordable basic insurance plan to ensure that existing policyholders, especially retirees and lower-income groups, continue to receive adequate coverage.
LIAM chief executive officer Mark O’Dell said the efforts carried out in collaboration with the Malaysian Takaful Association (MTA) also aim to ensure that everyone can contribute to an insurance plan.
“I think one of the big projects that we are working on is what we call a basic plan. We are part of a committee alongside Bank Negara, MOH and MTA to look at what this plan could look like because it’s really about affordability, especially since medical inflation is not going away.
“This basic plan we hope will provide an alternative for those who want to maintain access but have challenges with affordability,” he told reporters after attending LIAM and Malaysian Life Reinsurance Group (MLRe) Hari Raya Celebration With Charitable Home and Stakeholders here today.
Also present were LIAM’s Immediate Past President Raymond Lew and MLRe Chairman Datuk Kamaruddin Taib.
O’Dell also highlighted the need for structural reforms in hospital billing, recommending a move away from the current ‘fee-for-service’ model which can lead to overcharging to a Diagnostic Related Group (DRG) pricing system.
Meanwhile, Lew said LIAM and MLRe also donated replica cheques worth RM25,000 to five welfare homes, namely Pusat Jagaan Kasih Murni, Taman Keramat; Assalam-Friendly Welfare Organization, Puchong; Noor Manzil Foundation, Puchong; Hiichiikok Foundation, Rainbow Park and Thangam Ilham Welfare Organization, Pandan Indah.
He said the donation was part of the Cares Life Insurance initiative which would be used to provide daily necessities such as kitchen items, personal care supplies, school stationery and household appliances according to the specific needs of each welfare home.
At the event, a total of 120 children, teenagers and caregivers from the five welfare homes jointly celebrated the occassion with 16 LIAM member companies.
