Materia Medica Malaysiana

Survey: Many M’sians are financially ill-prepared for illnesses, accidents

Kuala Lumpur: One among almost every five Malaysians stands to face serious financial difficulties within just three months if he or she is forced to stop work through illness or accident, a survey has found.

The survey, AIA Life Matters, which tested Asians’ attitude towards insurance and risk, showed that in Malaysia, without any form of critical illness, medical or accident insurance cover, 18 percent of those interviewed admitted they would face financial difficulties in just 12 weeks or less.

They would be almost totally reliant on family support or personal savings, the survey said.

The good news, however, was that Malaysia’s 18 percent was the lowest among the countries covered in the survey which was commissioned by American International Assurance Company Limited (AIA).

In Thailand the figure was 24 percent, while Hong Kong and Singapore both registered 20 percent each.

The survey also found that half of all Malaysian respondents admitted they would be struggling to survive financially in more than 12 months and would face acute financial difficulties in the event of an accident or illness.

The figures were similar to Hong Kong, but less than Singapore at 54 percent and Thailand at 55 percent.

Over 70 percent of the respondents in Malaysia said they would either rely on their family for support, or their personal savings, while around 12 percent hoped for charity and social welfare.

The survey covered 500 people comprising the general public aged 25 and above. In Singapore, the respondents were aged 20 and above. The telephone interviews, which were conducted in the second quarter of this year, was surpervised by Taylor Nelson Sofres.

AIA Malaysia vice president and general manager, Richard Bender, said the survey which would be an annual affair, was aimed at helping AIA design and price its insurance products.

The survey clearly indicates the big risks that people unwittingly take by not having adequate insurance coverage, he said at a media briefing here today.

“People ignore the financial impact on individuals and their families from the potentially high costs of expensive medical treatment, the longer-term implications of respite after-care and the consequences of permanent disability,” he added.

Meanwhile, AIA Malaysia vice president, accident & health department, Chuah Chin Seong said the company would be introducing two new insurance products over the next two months, High Networth Personal Assurance (PA) and Scholar PA. - Bernama