THE move to implement an insurance scheme for more flood-prone areas has hit a snag.
Minister in the Prime Minister’s Department Datuk Seri Shahidan Kassim said talks were held with several insurance companies last July after the Cabinet gave its nod for the Kampungku insurance scheme to cover more flood-prone areas.
“We called 10 companies for discussions but were unable to accept their conditions.
“They wanted a minimum number of flood victims for a particular area before the scheme could be implemented without making losses,” he said when answering a question from Datuk Hasbullah Osman (BN-Gerik).
Hasbullah asked if the Government was prepared to expand the Kemaman Preparedness Model where the Kampungku insurance scheme proved successful.
A total of RM569,000 in disaster insurance benefits were disbursed to 569 flood victims in Kemaman following a flood disaster in November 2015.
Shahidan said the insurance companies were looking at a population base of 700,000 victims while only 100,000 were affected by floods in Kemaman.
However, Shahidan said the Government was still keen on implementing an insurance scheme for flood-prone areas.
“The Government had agreed in principle to a model where 50% of the insurance premium is paid by residents while the remaining is borne by the Member of Parliament of the area,” he added.
He said several local universities and insurance companies were looking at ways to find a suitable scheme for the purpose.
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