E-Payment For Life Insurance

Life insurance policyholders have been encouraged to sign up for e-payment to avoid inconvenience when claiming their dues after the policies have matured.

Insurance companies can then remit maturity payments into policyholders’ active bank accounts instead of issuing them cheques.

The Life Insurance Association Malaysia (LIAM), which has 16 member companies, said e-payment would help reduce cases of unclaimed monies.

“With an e-payment account, insurance companies can transfer policyholders’ maturity proceeds, claims payments and dividends directly into their bank accounts.

“Policyholders should also update their personal details with insurance companies,” it said.

Yesterday, The Star reported that more than RM327mil in unclaimed monies had accumulated over the past five years, belonging to people whose insurance policies had matured but who were unreachable.

LIAM had said most of the affected policyholders had not set up an e-payment channel, which meant the companies had to issue cheques in their name.

However, many also did not update their contact information or that of their beneficiaries, so the cheques were returned and the amount eventually submitted to the Registrar of Unclaimed Money.

Checks on the websites of popular insurance companies in Malay­sia revealed a comprehensive list of frequently asked questions (FAQs) on the e-payment system.

In the list, the companies give assurances that the system is faster, safer and more convenient as there will be no damaged or missing cheques, nor will people have to travel and deposit them.

Policyholders are advised to contact their insurance companies for more information.