Saturday, 20 August 2016
KUALA LUMPUR: In a move to mitigate unemployment fears and its effect on property sales, IJM Land Bhd is working with insurance companies Allianz Life Insurance Malaysia Bhd and Allianz General Insurance Company (Malaysia) Bhd to underwrite three insurance schemes for house buyers for 36 months from the date of signing the sales and purchase agreement (S&P).
IJM Land managing director Edward Chong said should buyers be involuntarily terminated from their employment, unemployment insurance will kick in to pay “a specified amount to cover the interest on the loan amount.”
Chong said this was the first time unemployment insurance was being offered in Malaysia. The scheme was unveiled in Kuala Lumpur yesterday.
“However, this type of insurance is only for IJM house buyers. Involuntary unemployment is defined as unemployment due to economic reasons afflicting the employer,” Chong says.
It excludes unemployment due to disciplinary action or performance of the individual.
Known as the Triple Insurance Protection Scheme (or HomeTIPs), it covers properties priced between RM300,000 and RM2mil and is applicable only when the property is directly purchased from IJM Land from now until December 2016, he said.
The policy benefits are not transferable and becomes null and void if the first buyer terminates the S&P or sells the property within three years from the date of the S&P.
HomeTIPS is offered in addition to cash rebates and free legal fees. Chong said the 3-in-1 form of insurance protection also offers a group term life and personal accident schemes. Financial benefits are paid out in the event of death or total permanent disability. Payout can be done within a month.
Chong said HomeTIPS came about after numerous redundancy comments heard on the sales gallery, resulting in loss of sales. Employees from the oil and gas sector were directed affected, said IJM Corp Bhd CEO/managing director Datuk Soam Heng Choon who was at the same event. The benefit is set aside from the sales value of every property sold.
“When people come into our sales gallery, they are concerned about short term economic uncertainties. They then put their house purchase plans on hold. One, two or three years later, they find that prices have increased. We saw this happen the last number of years. We want to help them make that decision now because we feel that this is the best time to buy,” Chong said.
Malaysia’s unemployment rate remained at 3.4% in June 2016, compared with 3.2% a year ago, according to the Statistics Department. It remained unchanged from May. Malaysia’s monthly unemployment rate hovered at 3.4% year to date, among the highest since November 2013.
Source by: The Star Online