The Perlindungan Tenang initiative is designed to broaden access to insurance and takaful solutions for unserved and underserved segments of the population, thereby supporting their financial and social resilience.
For insurance and takaful products to qualify under the Perlindungan Tenang initiative, the products must meet the five key principles under the framework. These are—
(a) affordable;
(b) easily accessible to the target segments;
(c) provide good protection value;
(d) easy to understand; and
(e) easy to purchase, make nomination and to make claims.
This policy document provides a more enabling and fit-for-purpose regulatory framework since the launch of the Perlindungan Tenang initiative in 2017. It focuses on the following areas:
(a) empowering licensed persons to offer more innovative, diverse and meaningful microinsurance and microtakaful products in a sustainable manner through clearer expectations on product development;
(b) promoting wider take-up of microinsurance and microtakaful products by broadening the distribution channels to address challenges associated with high distribution costs, as well as enabling product combination; and
(c) strengthening consumer protection requirements to safeguard consumer interests.
This policy document sets out the qualification criteria, regulatory requirements and operational flexibilities granted under the Perlindungan Tenang framework as follows:
(a) product principles and features, including for riders or endorsements;
(b) specific requirements for combined products;
(c) introduction of a new category of distributor, termed as “Perlindungan Tenang partners”;
(d) operational enhancements, including on claims processing and management; and
(e) product approval process, monitoring and reporting requirements.
This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking
