Ceria @ NIAM

The National Insurance Association of Malaysia (NIAM) expects to sell an average of RM500 million worth of policies under its proposed critical illness plan, Ceria Malaysia, in the first quarter of next year.

NIAM Chairman C. Kumaran said the introduction of Ceria Malaysia, which would be submitted for approval end of the month, would be timely considering rising medical costs and the increase in demand for medical related insurance products which are also expected to continue to lead the industry's growth.

Ceria Malaysia would ride on the momentum of NIAM's premier life insurance plan, Bijak Malaysia, as it would complement the whole proposition, Kumaran told Bernama.

NIAM would submit Ceria Malaysia for approval to Bank Negara Malaysia by end of the month, he said, adding that it was expected to hit the market by the first quarter next year.

Kumaran said it was also important to introduce more creative plans that reflect the current needs of society. He said the cost of Ceria Malaysia plan, an extension of Bijak Malaysia, will also be more affordable.

It will be 20 to 30 per cent cheaper than any critical illness plan in the market with similar features and with yearly renewable term, he said.

Citing an example of premium payment, he said: "For RM100,000 sum assured, a 40-year old man would have to pay RM686 per year."

Bank Negara recently approved another NIAM initiated product, Cergas Malaysia, a guaranteed renewal hospital and surgical policy.

Kumaran said the association was confident that the product would be well received by the public.

He also cautioned NIAM members not to lose sight of the responsibility to ensure customers were treated fairly in all aspects of the insurance pendulum in their eagerness to introduce more creative, attractive and beneficial products to the consumers.

"There must be a good balance between commercial interest and the public interest.

"The Treat Customer Fairly guidelines that BNM has introduced must be taken seriously by all industry players and adhered to in full capacity," he added.

Established in 1973, NIAM currently has 28 member companies comprising 11 general insurance companies, four composite insurance companies, three life insurance companies, five takaful operators and five reinsurers.