KUALA LUMPUR, June 27 (Bernama) — Working Malaysians need to have an insurance coverage of about nine times their annual salary, according to a study by the Malaysian Takaful Association (MTA).

This translates into a shortfall in insurance coverage of RM200,000 per individual and the overall “protection gap” of 12.5 million working Malaysians in 2012 totalled RM2.5 trillion.

The protection gap refers to the financial needs for working adults in Malaysia up to their retirement age, against the financial consequences of death, critical illness and disability.

According to Actuarial Partners Consulting Sdn Bhd, the company commissioned by the MTA to carry out the study, it revealed that Singapore and Taiwan had a lower protection gap over Malaysia, while for those in Indonesia, Thailand, Hong Kong and Vietnam, it was higher.

These statistics were revealed at a media briefing by the MTA here today.

Meanwhile, Deputy Finance Minister Datuk Ahmad Maslan said the government aspired to achieve a penetration rate of 75 per cent of total population for life insurance coverage.

“The present penetration rate is still low, with takaful at 13 per cent and life insurance 56 per cent,” he added.

The Minister earlier officiated the launch of “The Story of GAP:Charting Takaful Growth in Malaysia”, which formed the basis of the survey by the MTA.

– BERNAMA

Original article is published here.