By Danial Dzulkifly
SHAH ALAM, Nov 22 — The Selangor General Insurance Scheme (Insan), which provides coverage for eligible residents, will be discontinued, to be replaced with the reintroduced Khairat Darul Ehsan death benefit.
Speaking in the Selangor State Legislative Assembly today, state executive councillor for investment, trade and mobility Ng Sze Han said Insan faced issues such as low registration and payment rates.
“As mentioned by the Menteri Besar (Dato’ Seri Amirudin Shari) during the tabling of the 2025 Selangor State Budget, the death benefit payment (Khairat Darul Ehsan) will replace Insan to provide financial support to Selangor residents.
“This reflects the state government’s ongoing commitment to welfare initiatives for its people,” he said in his state budget wind-up speech, in response to questions raised by Taman Medan assemblyman Dr Afif Bahardin about Insan.
Insan is a state initiative that offers insurance coverage to Selangor residents aged 30 days to 80 years, and comprises a conventional and takaful scheme.
The conventional scheme offers RM10,000 in insurance coverage for death and permanent disability due to accidents, and RM1,000 for burial expenses in the case of death.
The takaful scheme offers between RM10,000 to RM20,000 in takaful coverage for death or permanent disability due to accidents, a RM1,000 for burial expenses in case of death, and an additional benefit of RM50 per day for up to 30 days for hospitalisation.
Khairat Darul Ehsan, meanwhile, provides a death benefit of RM1,000 for allSelangor residents aged 50 and above, as well as people with disabilities. It is expected to benefit 20,000 people and is set to start on June 1, 2025, with an allocation of RM20 million.
[caption id="attachment_323492" align="aligncenter" width="1200"]
A woman looks at the Selangor General Insurance Scheme homepage on her phone, during the launch of the Tekad Insani #KitaSelangor event for Insan at the Bangi Convention Centre on August 4, 2023. — Picture by FACEBOOK/MENTERI BESAR SELANGOR INCORPORATED[/caption]
While acknowledging Insan’s weaknesses, particularly its low registration rates, Ng noted that the initiative had successfully provided insurance coverage, with the potential to cover up to six million policies statewide.
Ng also denied allegations by Afif, who purportedly cited an audit report by the Selangor Select Committee on Competency, Accountability, and Transparency, claiming the state had lost RM21 million from funding the Insan initiative.
“The audit report did not mention any loss of RM21 incurred by the state government. Instead, the report mentions that the six million policy target for the Insan Conventional scheme was achieved 100 per cent. Moreover, recipient satisfaction was excellent in terms of claim processing.
“However, as of October 31, 2024, the disbursement rate was low compared to the programme’s total allocation. For Insan Conventional, claims totalled RM1.183 million for 108 recipients, while Insan Takaful claims amounted to RM66,000 for six recipients.
“The Insan Conventional policy ended on September 30, 2024, while Insan Takaful remains active until August 3, 2025,” said Ng.
As an added measure to increase registration for Insan, Ng said the state has facilitated registration for teachers, school staff, and students under the Selangor Education Department and Selangor Islamic Religious Department.
Registration has also been extended to beneficiaries of other state programmes like Iltizam Selangor Sihat, Bantuan Kehidupan Sejahtera Selangor, Skim Mesra Usia Emas, and Skim Air Darul Ehsan, said Ng.
“It is an insurance scheme. We cannot compare or equate the value or amount claimed by the people because we hope everyone will enjoy good health and safety. Claims will only be made in the event of undesirable occurrence.
“All insurance schemes are like that — we need to pay upfront before we can get protection or coverage from the insurance provider. The weakness of this programme, which we acknowledge, is the less-than-satisfactory registration process.”
