MAA sees RM100m in premiums in a year from Super Fortune Plan

Malaysian Assurance Alliance Bhd (MAA) aims to achieve RM100 million inpremiums in a year from its Super Fortune Plan launched yesterday.
The plan is an endowment insurance plan with death and total permanent disability coverage that is catered for individuals aged between 10 and 55 years.
The plan provides guaranteed annual cash payments at a rate of 4% after the 10th policy year and a lump sum cash payment of 120% of the sum assured payable upon maturity, which is about 30 years after the commencement.
"During uncertain times like this, people look for guaranteed plans," said MAA vice president of life business development services Chan Yok Chor. For example, a non-smoker male aged 25 who chooses to pay premium for six years for a basic sum assured of RM100,000 would need to pay annual premiums of RM15,820 or a total premium of RM94,920 over the six years.
Upon maturity at the age 60, he would receive a total guaranteed annual cash payment of RM136,000 and a lump sum cash payment of RM120,000.
"The total return i s RM256,000 together with death and disability coverage. That translates to RM2.70 for every RM1 you put in," said Chan.
The Super Fortune Plan allows customers to choose their premium paying term of six, ten, 15 or 20 years. Customers can also pay their premiums either monthly, quarterly, semi annually or annually.
"Through our surveys, we found out that customers don't like to pay premium for a long period. The plan allows them to pay in a shorter period. Customers can also attach additional benefits or rider plans such as medical and accident," said Chan.
Under the plan, the minimum sum as sured i s RM25,000 and policyholders cannot change the premium paying period.
Meanwhile, MAA CEO Muhamad Umar Swift sees no drop in the general insurance industry amid the economic slowdown.
"The general insurance market has been robust with sales up year-on-year. On life insurance, savings policies have declined while protection-type policies have gone up," he said.
On the sale of a 4.9% stake in MAA Takaful Bhd to AmAssurance Bhd, Muhamad Umar said it would take four to six weeks to finalise and submit documents for authorities' approval.

(This story appeared in The Malaysian Reserve on Mar 24, 2009. The Malaysian Reserve is a daily business/finance newspaper published out of Kuala Lumpur, with a sectoral page on insurance & takaful called UNDERWRITER, appearing on alternate Wednesdays, edited by Habhajan Singh.)