Direct insurance implementation ensures transparency - Borneo Post Online (2025)

KOTA KINABALU (April 16): The implementation of Skim Perlindungan Insurans Berkelompok (Group Insurance Protection Scheme) is aimed at providing accident insurance coverage to all eligible Sabahans, said State Finance Minister Datuk Seri Panglima Masidi Manjun.

Addressing concerns raised by assembly members from Senallang, Lamag, Darau, Tanjong Aru and Usukan during the State Legislative Assembly sitting, Masidi said the scheme, set to run from May 1, 2025 to April 30 2028, involves a total premium of RM50 million over the three-year period.

“The scheme is designed to provide compensation in the event of accidental death or permanent and partial disability resulting from accidents,” he said.

The implementation of the scheme will be managed directly by Progressive Insurance Bhd, without the involvement of third-party agents or intermediaries. This, he said, ensures transparency, cost-efficiency and maximum benefit for the people of Sabah.

“In response to questions raised by honourable members, I wish to stress that no external agents are involved. This approach is intended to safeguard the integrity of the scheme and to ensure its smooth and efficient administration,” he added.

The scheme will operate on a “non-named” or anonymous policy model under a master insurance policy, meaning individual registration is not required. Eligible citizens will automatically be covered, provided they meet the terms and conditions which will be announced in due course.

Masidi explained that this approach is especially beneficial for rural and remote communities, many of whom may face difficulties in accessing registration processes due to digital literacy or connectivity issues.

“This method allows for more inclusive protection, ensuring no Sabahan is left out, especially those in the interior who may otherwise be excluded due to logistical or digital barriers,” he said.

To illustrate the practicality of such an approach, Masidi cited the existing insurance coverage for climbers of Mount Kinabalu. In that instance, climbers are automatically covered under a group policy when they register for the climb through licensed organisers, without needing to register individually with the insurer.

Similarly, the new scheme allows the government to leverage economies of scale, reducing the overall cost of premiums compared to individual plans. It also simplifies administration for the implementing agency by removing the need to manage large volumes of individual data, enabling faster response and more efficient monitoring.

Masidi reaffirmed that the introduction of this insurance initiative reflects the state government’s proactive stance in improving social protection mechanisms for its citizens, especially in unforeseen and vulnerable situations.

Masidi also shared details of the key benefits provided under the scheme. Beneficiaries will receive RM10,000 in the event of accidental death, RM10,000 for permanent disability, and RM10,000 for the loss of two limbs due to an accident. These fixed benefits aim to offer immediate and meaningful support to victims and their families in times of crisis.

He further explained the government’s rationale for introducing the scheme, citing alarming traffic accident statistics from the Royal Malaysia Police (PDRM). In 2020, Sabah recorded 12,987 traffic accidents, followed by 12,959 in 2021. These figures rose sharply in the following years, reaching 19,197 in 2022, 19,631 in 2023, and 20,828 in 2024.

Fatalities also showed an upward trend, with 220 deaths in 2020, 234 in 2021, 280 in 2022, 289 in 2023, and 319 lives lost in 2024.

Masidi pointed out that many of the individuals involved in these accidents likely did not have insurance coverage.

“This is exactly why the state government is willing to invest in this protection scheme. We cannot assume that everyone on the road is covered. This initiative ensures that, at the very least, our people have a safety net if the unexpected happens,” he said.