8% Investment Tax Removed

INSURANCE industry players are encouraged with the Government’s proposal to remove 8% investment income tax on deferred annuity.

In Budget 2013, the Government had also proposed to introduce insurance schemes for hawkers, small business owners, farmers and fishermen, with total yearly allocation amounting to about RM298mil. The Government proposed a group insurance coverage scheme of RM5,000 for hawkers and small business owners registered with the Companies Commission of Malaysia. The Government will allocate RM16mil a year under the scheme.

For fishermen, the Government introduced a scheme with a RM100,000 maximum coverage, and an allocation of RM230mil in 2013 as an incentive for fish landing as well as payment of living allowances for the fishermen.

Another group insurance coverage scheme of up to RM15,000 will be allocated for almost 242,000 armed forces and police personnel.

The Government will also provide insurance coverage of up to RM100,000 for all school children travelling by school buses with permits, in the event of accidents.