Kota Kinabalu: A new state-run group insurance scheme providing free accident coverage for Sabahans should undergo thorough strategic and financial assessment to ensure its long-term viability, says Umno Sabah.
While the party acknowledged the state government’s concern for public welfare — especially for the lower-income group — Umno Sabah Information Chief Datuk Suhaimi Nasir said there were several critical aspects that required clarity and deeper scrutiny.
Among the concerns raised was the scheme’s limited three-year duration, from May 1, 2025 to April 30, 2028, which Suhaimi said raised questions about its long-term continuity.
“Without a broader policy framework or extended planning, such an initiative risks being a temporary measure with little long-lasting impact on social wellbeing,” he said in a statement.
He also called for greater transparency in the appointment of Progressive Insurance Bhd — a state-owned entity — as the main operator of the scheme, particularly on whether the selection was made through an open tender or direct negotiation.
“This is crucial to uphold accountability and integrity in the management of public funds,” said Suhaimi, who is also Libaran MP.
Suhaimi further noted that the lack of a clear monitoring mechanism could erode public confidence, adding that the scheme’s success depended heavily on the administrative system’s ability to handle claims in a transparent and efficient manner.
He also described the coverage — RM10,000 for accident compensation and RM500 for death benefit — as insufficient, especially for families who have lost breadwinners.
“The payout needs to be re-evaluated to reflect current living costs,” he said.
Suhaimi questioned the implementation approach, particularly the automatic enrolment process, which he said lacked clarity on how population data would be coordinated across agencies like the National Registration Department and Health Department.
“There is a risk of overlapping data, wastage and exclusion of eligible recipients,” he said.
He also stressed the need to consider the scheme’s fiscal implications, noting that covering premiums for 3.5 million residents would require significant financial commitment.
“If it is fully funded by the state government, we need to understand its impact on allocations for other sectors such as healthcare, education and rural infrastructure,” he said.
Umno Sabah urged the state government to provide more details on the scheme’s implementation mechanism, funding sources and clear success indicators.
“This will ensure the programme is transparent, sustainable and genuinely beneficial for the people of Sabah in the long run,” Suhaimi added.
Finance Minister Datuk Seri Masidi Manjun said it will automatically enrol all eligible residents, aged between one month and 80 years, for free personal accident coverage valued up to RM10,000.
Additionally, a funeral benefit of RM500 will be provided.
Masidi said claims will be processed quickly, with payouts expected within 14 to 30 days upon submission of complete documentation.
Progressive Insurance will release detailed information on eligibility requirements, claim procedures, and necessary documentation, he said.
