EPF i-Lindung

The Employees Provident Fund (EPF) is targeting 300,000 contributors to take advantage of the i-Lindung platform launched on Tuesday (July 12) within the first year. The premium is as low as RM30 per annum, the total coverage offered for i-Lindung is RM10,000.

The EPF launched the i-Lindung platform under the Members Protection Plan to facilitate the purchase of insurance and takaful products consisting of life and critical illness protection at an affordable premium from Account 2, with the protection offerings available to EPF members with immediate effect.

Low Penetration rate - The ownership of insurance policies and takaful certificates among the people in this country is still low, especially those in the lowest 40% monthly income group or B40. This situation is particularly worrying as this segment is more vulnerable to disasters and faces a lack of protection. At the industry level, the ownership rate of insurance and takaful coverage that is low will certainly stunt the growth of the insurance coverage industry overall. 

Citing a study from the Life Insurance Association of Malaysia in 2020, Ahmad Badri said that the insurance penetration rate in the country is only at 56.1% for insurance and takaful, and after deducting the number of policyholders with more than two policies, the rate is reduced to 41%.

Of that total percentage, he said over 90% had not enough coverage for themselves and their families. Only 4% of households from the low-income group have takaful coverage or life insurance. 

In a statement, the EPF said members who wish to purchase insurance and participate in takaful products offered by EPF-approved insurance companies and takaful operators can do so via the i-Lindung platform within the EPF i-Akaun (Member) portal.

Participating insurance companies and takaful operators - are FWD Takaful Bhd, Prudential Assurance Malaysia Bhd, Prudential BSN Takaful Bhd, Etiqa Life Insurance Bhd and Etiqa Family Takaful Bhd.

Members below age 55 with a sufficient balance in Account 2, who are Malaysian and registered i-Akaun users, are eligible to purchase products under i-Lindung. Those above age 55 can also purchase products under i-Lindung provided that they are within the eligible entry age of related products and maintain a minimum RM100 in their Akaun 55 or Akaun Emas.

The registration of new EPF members rose by 57% to 146,000 in the first quarter of 2022, while voluntary contributors under the i-Saraan programme jumped 77% to 599,000 individuals. This was after the EPF embarked on a long-term strategy to expand the social protection coverage of Malaysians in an effort to strengthen government-linked companies’ support ecosystem.