SMEs Urged To Take Up Insurance Policies

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Malaysia’s small and medium enterprises (SMEs) are encouraged to take up insurance policies ahead of the challening business environment.

SME Corp Chairman, Tan Sri Mohamed Al Amin Abdul Majid, said the policies could protect their businesses and the SMEs could pick the plans which were ideal for the nature of their businesses.

“The roles of SMEs are becoming increasingly vital in the development of the Malaysian economy and today they (SMEs) have the potentials to contribute substantially besides providing strong foundation for the growth of new industries as well as strengthening the existing ones for future development,” he told reporters after launching SME business insurance, Optimuz, here today.

He said the country has 600,000 SMEs and most of them were from the services sector.

“The SMEs should look into the insurance products which will give them advantages in the long run. It is also important for the SMEs to know the importance of business coverage. For example, a small accident could cost the company huge amount to cover back and the insurance can be used,” he said.

Optimuz is a new insurance solution introduced by Zurich Insurance (M) Bhd for SME owners to protect their businesses.

Zurich Chief Executive Officer, Philip Smith, said Optimuz offered 11 coverage segments — ten under general insurance (like fire and burglary) and one term life insurance — for SME businesses.

Group term life insurance plan focuses on employees. It is a yearly renewable group term life insurance policy that cares for the employees’ welfare and well-being.

“We are determined to help SMEs understand and manage risks in the best possible way.

“Optimuz is not only a flexible plan but provides instant coverage with the least amount of hassle for both business owners as their points of contact are the Zurich Insurance’s agents and distributors,” he said.

Meanwhile, Zurich General Insurance, President David Fike, said the Optimuz has registered 70 per cent take-up rate since the last two weeks it has been in the market, with the higher demand for the general insurance plans.

“This is positive response from customers and we hope the numbers will increase. The company has 20,000 SME customers to date,” he said.