30/08/2018
Personal Accident(PA) Insurance policy or "polisi Insurans Kemalangan" should have Service Tax 6% or not?
I say to the government, Finance Minister and Prime Minister and custom department, you should exempt this insurance premium from Service Tax ((ST) 6% for all individual PA policy. The government should think twice.
Why? Ask me why?
The pe*******on of Personal Accident Insurance policy in Malaysia is low. The majority of the Malaysia workers are protected against accidental physical injury and accidental death by the employers through compulsory contribution to SOCSO scheme or Worker's Compensation Insurance scheme. Some good employers can afford to purchase Group Personal Accident Insurance and Group Term Life and Medical Insurance policy for their employees.
Do you in all your honesty, have bought a Personal Accident insurance policy voluntarily without an agent or a tele-marketeer persuasion? What is the reason you will buy a personal accident insurance policy? For fear of accidental injury that can cause you permanently disabled and forced you out of job? For fear that your loved ones and dependents will lose their financial supports and face a bleak future? Does our Malaysian Government take care of them when you go to meet your Creator or Can you trust the Government of the Day that it will take care of their welfare and provide education funds for children? If not, please read on. This is not a political forum. I only want justice for you and me. Not Malaysiakini, Not Free Malaysia Today or Not the Press media.
The recent New government SST Malaysia Act 2018 imposition of 6% Service Tax (ST) proposed on General Insurance products are no different from the 6% GST imposed by the previous Government on the insurance premiums. So are you beholden to the new Government or the Previous Government?
I think you are smart when you read my release from the bottom of my heart. Please help yourself to convey the message to our new PM Tun Dr Mahathir Mohamad and Finance Minister Lim Guan Eng and the BNM Governor, Datuk Nor Shamshiah Binti Mohd Yunus that you do not need this ST of 6 % to be imposed on the General Insurance Products purchased by individual Malaysians. It only gives you a temporary spike or syiok sendiri during the temporary No Tax period from 1st June, 2018 to 31st August, 2018. There is not much to applaud the Finance Minister Lim Guan Eng for the 6% Service Tax this Merdeka come 1st September, 2018.
I suggest they can propose to impose 6% ST on the commercial and business related purchases of General Insurance Products like company's car motor insurance policy and company's group employee Personal Accident Policy or Group Hospital and Surgical Plan policy or Commercial Fire and All Risks insurance policies and Professional Liability Insurance. I do not think forgoing the Service Tax of 6% on all Individually purchased General Insurance Product policy for personal and private risks protection against financial loss should be a "Big" loss of opportunity for Malaysia Government to enrich its tax coffers to service our Nation's Trillion Ringgit Debts. If BR1M is a handout bribery or "sogokan" why not give a gift of exemption of 6% on all General Insurance and Takaful General Insurance products to Individuals only(Business to Individual personal consumers). You can impose the 6% on the General Insurance and Takaful General Insurance products purchased by Business entities.
Why? How many Individual PA Policies and what are the total premiums of those policies collected that are in force today? Let us ask the Bank Negara Malaysia for statistics on Insurance for all individual purchased general policies for various classes, such as , Motor Insurance, Houseowner and Householder Insurance, Personal Accident Insurance, Hospital and Surgical Insurance, Travel Insurance and Marine Hull Insurance.
We did not have to pay the service tax for general insurance products for individual policies prior to the GST 6% introduction in April 2015. There is already a stamp duty of RM10 on each of the General Insurance Policy issued. With the GST 6%, we, the Malaysian Public have to fork out easily RM200-RM500 per family on average annually to the government's coffer but cannot claim back any GST like the registered GST entities. Money only goes out from individual pockets just on General Insurance policies ya..Claim or no claim on insurance policy, all premiums burnt out.
If majority of Malaysians are without Personal Accident(PA) Insurance policy, when calamity befalls him/her, and if he or she become accidentally disabled person and our disabled community multiplied, many of us Malaysians will probably need handouts like BR1M or new version of "Bantuan" for the well being of our welfare. For as little a premium of slightly over RM100, we can get an individual Personal Accident Insurance ( for Class ! & 2 Occupation), a coverage of RM60,000 on Accidental Death and Disability Benefits and some other medical reimbursement and benefits. If the government imposed the 6% ST on our individual PA policy annual premium of RM100, an additional RM6.00 is taken out from the Rakyat Pocket for the whole year. If a household family consist of a breadwinner and his spouse and three children, and if he takes a PA policy for each of his family members individually, the government would have collected a stamp duty of RM10 x 5 policies (RM50) for and 6% x RM100 x 5 policies on Service Tax (RM30). The total money from the sales of the 5 Individual PA policies from an individual Malaysian annually would have given a total of RM80 to the government.
Government collected stamp duty of RM10 per General Insurance and Takaful General Policy. So collect another 6% ST from you and me again when we purchase the General Insurance Policy or Takaful General Insurance policy. For the next 5 years PH government will collect from you RM400 on the above example just on your PA Insurance policies. Please check your insurance coverage and count how many general policies your have and how much will the government going to tax you indirectly from insurance and such other list of items in its proposed SST 2018 before they tax you again on individual income tax and other taxes such as Road Tax, Quit Rent, Annual Assessment by Local Government, RPGT and etc.
The government of the day should promote the ownership of PA policies, Houseowner and householder policies and Motor Insurance Policies so that the Malaysian People do not depend on Government to give handouts when there is a disaster like windstorm and thunder that struck many villages, the flood menace last November 2017 in Penang and other places or in the instances where there were fires that destroyed a community in small villages or arson at a religious school where there were no group student PA. The insurance claims would have lighten the financial loss of the individual Malaysians and less dependency on the government on handouts and reduce the present government's burden to have a budget for development of our country and its people.
It is the insurance agents that run around to service insurance clients and they are the ones that deserve the commission earned and no further service charges. If Insurance agent do not get paid for after sales services such as for claim services rendered to clients, why the government which did not provide the insurance service, except for BNM vetting and granting the approval of any newly proposed products launches and sales in Malaysian market want to collect the Service Tax it did not render to the insurance policyholders? BNM also do the mediation role only when there is dispute which cannot be resolved between the policyholder and the insurance company. Personal Accident Insurance policies benefits help the government financially from being bogged down by the medical cost incurred in the treatment and rehabilitation at Government Hospital facilities because of the accidental injured Malaysians seeking assistance are paid by the insurance claim. It lessen the immediate needs of welfare payment by Government to family members and the welfare payment for the Permanent Totally Disabled Persons (Orang Kurang Upaya -OKU) or Welfare supports to the dependents of the deceased breadwinner due to his/her untimely death since PA Insurance policy will pay a lump sum death benefits to the deceased insured's family according to the nomination [less hassle of applying for Letter of Administration(A) or Letter of Probate(LP) or going to the Pejabat Pesaka Kecil or District Officer's office to get the paper works done for distribution of the insurance money left behind by insured person].
If we talked about motor vehicle accidents, we have to lodge police reports and made to wait for hours for the investigating traffic police officer to investigate and give his finding reports which we have to pay for it to facilitate our claims from insurance companies. The service tax of 6 % for waiting for police report,JPJ report and/or BOMBA forensic report and etc... Do you think the government should make you pay the 6% ST on general insurance products after collecting this fee and that fee and hassle here and there wasting your productive time?
We do not need leaders who siphon the Malaysia Rakyat hard earned money to service the huge debts of the Nation and create more burden for the Rakyat at large. We do not want to be agents used by the government of the day in facilitating the unproductive and wastage of the Malaysian people's resources. Mr Ministers in PMO, Finance Ministry, Transport Ministry, Education Ministry and Special advisers to the Government, please get your act right before you are voted out soon. We, the general insurance agents are giving an earful to you.
Suara wakil Insurans Am Malaysia, suara anak Melaka, sayangi Perlis and penduduk Pulau Pinang. Saya bangsa Malaysia
Kuala Lumpur, 27 Aug 18 – The recent announcement on Service Tax made by the Government with the passing of the Bill in Parliament confirms that general insurance products are a taxable supply. This tax is applicable to individuals who purchase general insurance policies except for medical policie...
