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Kuala Lumpur, 26 September 2014 – The General Insurance Association of Malaysia (PIAM) expects the Budget 2015 to continue to focus on measures to further liberalize and strengthen the nation’s insurance and takaful sector.
In tandem with the favourable economic performance as indicated by the positive GDP growth of 6.3 per cent during first half of 2014, PIAM believes that the general insurance industry is poised for further growth in the remaining of 2014.
PIAM advocates a further increase in the tax relief on contributions to the Employees’ Provident Fund (EPF) to commensurate with the current salary ranges for the private sector. Relief on insurance premiums paid, particularly for general insurances for personal protection such as education and medical and health policies will be welcomed by the insuring public. Consumers have become more aware of the benefits of general insurance and relief on such products should be encouraged further as not only does it lessen the Government’s burden on education services and medical costs, but also provides the rakyat with peace of mind.
Similarly, PIAM hopes for a separate tax relief to be allowed to encourage more small and medium-sized businesses to take up liabilities insurance which in the long run will help local companies better manage their risks exposure. Risk management is an important tool for any on-going business enterprise and insurance cover provides a relief to these small entrepreneurs in the form of an excellent risk management tool.
The Association also expects to see some reductions in personal tax due to the impending introduction of GST.
PIAM is the national trade association of all licensed direct and reinsurance companies for general insurance in Malaysia. Currently, PIAM has 29 member companies.