This is a good idea since it provides a safety net in case the head of the household dies. As its well documented that those in the low income background and underserved communities are more susceptible to illness, poverty, occupational hazard, and social ills, which can lead to death, this insyurance scheme is well placed to provide temporary reprieve to the family who may have lost their sole breadwinner.
Only thing is the the amount is a bit low (RM10k to RM20k). I think it should be raised to RM30k – RM50k, which of course will involve more cost for the government. Maybe can do it in stages. The RM10k sometimes is used up to settle debts and other expenses, and not to plan for future.
Women, Family and Community Development Minister Datuk Seri Shahrizat Abdul Jalil yesterday presented compensation money amounting to RM295,000 to 19 low-income families in Selangor whose heads of household had died.
She said insurance protection was among the initiatives under the National Key Results Area (NKRA) to give financial aid to low-income families when the heads of household were deceased.
The Government began providing life insurance protection against death or permanent disability to low-income families early this year.
“The insurance protection is given to heads of households, their spouses and their children under three schemes: life insurance, accident insurance and death khairat (benefits),” she said yesterday.
“All heads of households registered with the e-Kasih system under the Prime Minister’s Department up to January this year are eligible for protection under the schemes.”
She said the Government had allocated RM12mil to pay the annual insurance premiums to Allianz General Insurance Company (M) Bhd for 100,000 families nationwide.
“Allianz has paid compensation amounting to RM3mil following the death of about 200 heads of households,” she said.
Shahrizat said that in cases of death, the next of kin would get compensation of RM10,000 but if the head of a household sustained a permanent disability, he would get RM20,000, his spouse RM10,000 and his children RM5,000. — Bernama
source: http://thestar.com.my/news/story.asp?file=/2011/5/26/nation/8760620&sec=nation
