PIAM expects 2015 Budget to strenghten insurance, takaful sector

The General Insurance Association of Malaysia (PIAM) expects the 2015 Budget to continue focusing on measures to further liberalise and strengthen the nation’s insurance and takaful sector.

The association advocates a further increase in the tax relief on contributions to the Employees’ Provident Fund to commensurate with the current salary ranges for the private sector.

Relief on insurance premiums paid, particularly for general insurance for personal protection such as education and medical and health policies would be welcomed and should be encouraged further, it said in a statement today.

"This does not only lessen the Government’s burden on education services and medical costs, but also provides the rakyat with peace of mind," it said.

In addition, 2015 Budget, to encourage them to take up more liabilities insurance, which in the long run will help them better manage their risks exposure.

It also expects to see some reduction in personal income tax due to the impending introduction of the Goods and Services Tax.