Reuters filepix for illustration purpose only

Reuters filepix for illustration purpose only

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KUALA LUMPUR (Nov 24): About 1.7 million civil servants especially those from the B40 group can now purchase or renew their vehicle insurance with interest-free instalments through MyezyCover scheme introduced by the government on Wednesday (Nov 24).

Human Resource Minister, Datuk Seri M. Saravanan said the Syariah-compliant scheme was implemented with a RM100 million funding by Social Security Organisation (Socso), MyAngkasa Amanah Berhad (MAAB) and A Tech Insure Sdn Bhd (ATECH).

“In the initial stage, the programme is targeted at civil servants especially the B40 before being extended to government and private sector retirees to enable them to buy motor insurance via monthly instalments, or every four-month or in one payment.

“Those who make a one-payment purchase would receive a 10% discount with payment via salary deduction by Angkasa,” he said in a media conference after witnessing the signing of MyezyCover Scheme Agreement at Menara Perkeso here on Wednesday.

In the agreement ceremony, Socso was represented by its chief executive Datuk Seri Dr Mohammed Azman Aziz Mohammed, ATECH by its chief executive officer (CEO) Syed Alwi Mohamed Sultan while MAAB by CEO Faudzi Mt Din.

Saravanan said the involvement of Socso in the programme was as an investor because the government was aware that there were civil servants, especially those in the B40 who could barely cover their vehicle insurance payment.

“The situation caused them to wait for their salary to purchase their car insurance if their car insurance expires in the middle of the month.

“Some even buy road tax and car insurance with loans from illegal money lenders apart from cooperatives or with credit cards.

“So looking at their cash flow losses through such loans, I discussed with insurance companies and was told they have no objection to providing instalment payment scheme as some parties could put up the payment first. So I discussed with Socso and other parties to participate in the programme as investors,” he said.

Saravanan is confident the programme would assist the government to eradicate poverty among the people especially civil servants to reduce their financial burden.

Meanwhile,  ATECH chairman, Tan Sri Abu Kassim Mohamad in a statement said with an instalment for as low as RM50 a month, MyezyCover scheme could assist civil servants to manage their cash in hand for other expenses. - Edge Markets, 24/11/2021