PIAM Pins Hopes On Budget 2026 To Expand Perlindungan Tenang Voucher To Motorcycles

By Naveen Prabu Kuppusamy

KUALA LUMPUR, Oct 9 (Bernama) -- The General Insurance Association of Malaysia (PIAM) has proposed that the government extend the Perlindungan Tenang Voucher (PTV) scheme to cover motorcycles under Budget 2026, as part of efforts to improve insurance penetration and road safety.

PIAM chief executive officer Chua Kim Soon said a large number of motorcycles on Malaysian roads remain uninsured, leaving riders and accident victims without adequate protection.

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“One of our main concerns is the high number of uninsured motorcycles on the road, and extending the PTV scheme to include motorcycles would help boost insurance take-up while ensuring better safety and compensation for those involved in accidents,” he said.

Chua was speaking to Bernama on the sidelines of PIAM’s 2025 half-year performance briefing on Wednesday.

Launched in September 2021, the PTV Programme is a government initiative aimed at expanding social protection for the lower-income group and is offered to eligible Bantuan Prihatin Rakyat (BPR) recipients.

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Chua said the initiative, which currently covers selected protection products for the B40 income group but excludes motorcycle coverage, could play a vital role in improving compliance with road tax and insurance requirements.

He also called for incentives to encourage insurers to develop affordable products for the lower-income group, noting that the B40 community often struggles with affordability when it comes to insurance coverage.

“Designing low-sum-insured and low-premium products for the B40 segment involves high operational and distribution costs, so government incentives such as higher tax deductions would help motivate insurers to offer more affordable protection,” said Chua.

He added that climate risk is another key concern for the industry, as Malaysia faces more frequent and unpredictable weather events such as floods.

“We hope the government will encourage insurers to invest in research and data collection on climate risk by offering incentives.

“This will help the industry better understand and price these risks, leading to improved products and claims management,” said Chua.

He also supported the Life Insurance Association of Malaysia’s (LIAM) recent proposal to raise the tax relief limit for education, medical, and health insurance premiums from RM4,000 to RM6,000 under Budget 2026.

“Adequate coverage from 10 years ago may no longer be sufficient today due to inflation and rising medical costs. Increasing the tax relief limit would encourage more Malaysians to upgrade their protection,” he said.

Prime Minister Datuk Seri Anwar Ibrahim, who is also the Finance Minister, is scheduled to table Budget 2026 in Parliament tomorrow.

-- BERNAMA