OCBC Al-Amin Bank Berhad (OCBC Al-Amin) is strengthening its footing in the bancatakaful business through its maiden distribution of a regular contribution term takaful plan, the Great Eastern Takaful Berhad (GETB) One Plan-i.
Distributed exclusively by OCBC Al-Amin, it is distinctive for its high coverage at an affordable contribution.
GETB is a joint venture company between i-Great Capital Holdings Sdn Bhd (i-Great), a subsidiary of Great Eastern Holdings Limited and Koperasi Angkatan Tentera (M) Berhad.
OCBC Al-Amin Chief Executive Officer Syed Abdull Aziz Syed Kechik, said the offering is timely in light of the Bank’s quest to expand its product shelf to include family takaful, especially considering the growing awareness of life and medical insurance/takaful as a critical element of the business.
According to Ernst and Young and the Malaysia Takaful Association, the current market penetration rate of Malaysia’s family takaful sector stands at only 14.5% compared to the life insurance market penetration rate of 41.2%.
“Clearly there is potential for takaful to grow especially in the emerging affluent segment. With the launch of One Plan-i, we aim to penetrate deeper into the bancatakaful business. In the future, we will continue to roll out more such products, with unique propositions that meet our customers’ needs,” Tuan Syed Abdull Aziz said.
According to Great Eastern Takaful Berhad Chief Executive Officer, En Zafri Ab Halim, One Plan-i is a regular contribution term takaful plan for customers who seek high coverage at a reasonable and affordable contribution.
“It provides a significant 10% increase in coverage every five years, increment of up to 3 times, and without any increase in contribution.
“For example, a non-smoker male customer aged 35 who participates in a 20-year term plan for a sum covered of RM1 million at certificate inception will enjoy an additional sum covered of RM100,000 on the 5th, 10th and 15th years, allowing the total sum covered to accumulate to RM1.3 million after 15 years with no increase in the contribution amount. He only needs to contribute the amount of RM230 per month to enjoy RM1 million coverage at certificate inception and have that initial RM1 million coverage increased to RM1.3 million after 15 years.
“With high coverage and no increase to the contribution amount, this regular contribution term plan will address the need of a breadwinner who wishes to provide takaful protection for their credit facilities and dependants’ living expenses should the unexpected happen,” he said.
“We believe discerning customers will quickly warm up to this unique proposition, especially since the question of affordability has been duly addressed; so cost should not be a deterrent,” Tuan Syed added.
Bancatakaful is founded on the principle of strategic alliance between takaful operators and financial institutions whereby takaful products and financial products are distributed to the financial market via a common channel.