KOTA KINABALU, April 16 — The state government sponsored group insurance for 2.7 million Sabahans starting next month will cost RM7 per person for a total of three years, said Sabah Finance Minister Datuk Seri Masidi Manjun.
Describing it as a sincere effort to provide a safety net for Sabahans, Masidi denied that it was a pre- election “scheme”, and noted that accidental deaths could occur, with or without the election.
The total premium would cost the government RM50 million for a period of three years, starting from next month to 30 April 2028 and will be implemented directly by Progressive Insurance Bhd without involving any third parties or external agents.
“This approach is taken to ensure transparency, effective implementation, and cost savings, thereby maximising the benefits for eligible citizens of Sabah under this scheme,” said Masidi during his winding up speech at the State Assembly sitting today.
The policy uses a “nameless” method whereby individual registration is not required.
“By implementing a nameless master insurance policy, the Government can ensure that all eligible Sabahans are covered without going through a complicated registration process that could cause some groups — especially those in rural areas or with limited digital literacy — to be left out.
“Furthermore, this approach allows the Government to leverage economies of scale, where the overall premium is lower compared to individual schemes. This step is taken to ease access to protection for the people, to ensure that no eligible Sabahans are left out of receiving the benefits of this scheme,” he said.
Masidi said that a similar approach was being carried out for climbers up Mount Kinabalu, where everyone who registers to climb through a recognised agent would be automatically covered.
He said the approach allows insurance protection processes to be more efficient, faster, and inclusive.
“This is not a scheme, we are serious about it. I come from a poor background and I can see how difficult it can be in the event of a death in the family. Every RM1 counts. We are not doing this for fun because of the election.
“Deaths will happen whether or not there is an election and we want to provide a safety net,” he said, adding that he believed some 90 per cent of Sabahans do not have insurance coverage.
“The premium is based on 2.7 million, and at RM50 million total premium for three years or RM7 per head. We are not going to argue over RM7 per person considering all the benefits that can come out of this. We have spent so much money on a lot of things, what is RM7 for our Sabahan?” he said.
The payout is RM10,000 in the case of death as a result of an accident, disability in 365 days after the accident, paralysis, loss of limbs above the wrist or ankle among other stipulations.
Masidi said that the increasing number of road accidents in Sabah underscores the need to implement a group insurance protection scheme.
According to data provided by the Royal Malaysia Police (PDRM), a total of 12,987 accidents were recorded in 2020, and this number increased to 20,828 cases in 2024 — an increase of nearly 60 per cent over five years.
More alarmingly, the number of fatal accidents rose from 195 cases in 2020 to 282 cases in 2024, while the number of fatalities increased from 220 to 319 people last year.
