KOTA KINABALU: The Sabah Government’s newly introduced Group Insurance Protection Scheme is aimed at providing a crucial social safety net for Sabahans in the event of accidents, death, or permanent disability, particularly targeting those without access to other forms of financial protection.
Finance Minister Datuk Seri Masidi Manjun said the initiative is a sincere effort by the state to protect the vulnerable, stressing that it is not politically motivated.
“We are serious about this. I come from a poor family, so I understand what it means when even RM1 or RM2 can make a difference. Imagine a young widow with nothing, no income, no support, and her husband is gone. Where does she go for help?” he said in his winding-up speech during the State Legislative Assembly sitting on Wednesday (April 16).
Masidi stressed that the decision to roll out the programme now is driven by the urgency to act, not by the election calendar.
“Whether there is an election this year or not, people will continue to die in accidents. We cannot afford to wait,” he said.
The insurance scheme, fully funded by the state government at RM50mil for a three-year period (May 2025–April 2028), is expected to benefit up to 2.7 million eligible Sabahans.
It will be administered by state-owned company Progressive Insurance Bhd without the involvement of any middlemen or agents to ensure cost-effectiveness and transparency.
“This is not a commercial product. There are no agents taking a cut. It is purely between the government and the insurer to ensure the maximum benefit goes to the people,” Masidi said.
The scheme adopts a “nameless” insurance model under a master policy, meaning eligible individuals do not need to register to be covered.
Any qualified Sabahan involved in an accident that meets the policy conditions will automatically receive benefits.
The payout structure includes RM10,000 each for death due to accidents, or for permanent disability within 365 days of an accident, or for total paralysis or loss of two limbs, among others.
Masidi pointed out that almost 90% of Sabahans have no insurance coverage and often struggle to cope during emergencies.
He stressed that the initiative was designed to address this gap, especially in rural and lower-income communities.
Concerns about potential wastage and better alternatives, such as giving aid directly to victims, were raised by opposition members, including Datuk Seri Mohd Shafie Apdal (Warisan-Senallang) and Sarifuddin Hatta (Warisan-Merotai).
Shafie cautioned that while the scheme may have good intentions, its implementation and prioritisation of funds should be examined thoroughly.
“The people need water, food, jobs … not just insurance. We must ensure there are no leakages. RM50mil is a large sum,” he said, while also sharing a personal story of a Sabahan patient in Kuala Lumpur who could barely afford meals while undergoing treatment.
Masidi responded by assuring the House that claims under the scheme will be made only for verified citizens, and that the scheme would be reviewed after three years if found to be too costly or ineffective.
He also clarified that payouts would only be given in verified cases, such as those with police reports, and only to Malaysian citizens, in response to calls for greater clarity and accountability.
Data from the Royal Malaysia Police revealed that road accidents in Sabah jumped from 12,987 in 2020 to 20,828 in 2024, a nearly 60% increase. Fatalities also rose from 220 to 319 in the same period.
Masidi said the scheme is necessary in light of these worrying statistics.
“We are not building a dependent society, we are ensuring that when tragedy strikes, a family does not collapse financially. RM7 per person is a small amount compared to the peace of mind and protection it can provide,” he said.
Further information on eligibility and how the scheme works will be disseminated through awareness campaigns and briefings via district offices and local agencies.
“This is about being prihatin (caring). As long as we can afford it, we will help our people,” Masidi said.
