‘Insurance firms should get tax breaks to offer lower premiums’
KUALA LUMPUR: Insurance companies should get tax incentives to come up with cheaper packages for the public, economist Professor Dr Barjoyai Bardai said.
Cheaper packages would encourage more people to buy insurance policies, said the Universiti Tun Abdul Razak lecturer.
This was among incentives that should be considered in the 2018 Budget, he said.
“For instance, those earning below RM4,000 per month would not benefit from the health insurance exemption,” Barjoyai said.
“Everyone needs health insurance, but it could be expensive and can cost up to RM3,000 a year.”
Barjoyai said with tax incentives in place, premiums could be lowered so that more people could buy insurance policies.
“This is why insurance companies should be given tax e x e m p- tions or deductions, instead of individuals,” the economist said.
He said it was time the government found ways to motivate the public to subscribe to health insurance.
“Most people do not have enough savings after retirement. Schemes like insurance are the only thing they rely on,” Barjoyai said.
“The schemes — such as life, education and health insurances — are important, so that even without cash in the bank account, they can still survive.”
He said the government would create a national health insurance subscribed by all citizens to ease the financial burden shouldered by public hospitals.