With the recent collaboration between PolicyStreet, a regional insurtech company, and Direct Lending, a local digital lending marketplace platform, there are now more options for consumers when it comes to their financing and insurance coverage. The timing of this launch is particularly pertinent as Malaysians gear up for the festive season of Hari Raya Aidilfitri, often a time when many embark on long journeys back to their hometowns. During the festive period, there were 12,407 road accidents reported.
The collaboration has spawned DirectCare+, an innovative embedded personal accident microtakaful with a loan protection feature. This is the first microtakaful product for either company and might open a new avenue for local insurance solutions. To find out exactly how this works, we had a chance to speak to Yen Ming Lee, Co-founder and Group Chief Executive Officer of PolicyStreet about the challenges and opportunities this presents.
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DirectCare+ aims to address these challenges by offering an additional layer of financial protection against unexpected events such as accidental death or permanent disability. This complimentary microtakaful is available to eligible users and applicants of Direct Lending’s Shariah-compliant Auto Service Financing Plan, which provides a digital, Shariah-compliant instalment plan for car services or repairs with payment terms of up to 12 months.
Could you explain how this Microtakaful product works?
DirectCare+ is a microtakaful designed to provide financial protection for users of Direct Lending’s Auto Service Financing Plan. If you’re a Malaysian using this plan to pay for your car service or repair at participating workshops, DirectCare+ has got you covered. During our campaign period until 30 April 2024, eligible users will automatically receive three months of complimentary coverage.
DirectCare+ provides coverage in case of accidental death and permanent disability. You’ll receive RM15,000 in financial support and loan protection in case of accidental death, ensuring that any remaining financing amount is covered. Additionally, Khairat Kematian provides a lump sum of RM3,000 to cover funeral costs.
In case of unemployment due to accidental permanent disability, the loan amount will continue to be covered for up to 12 consecutive months. You’ll also receive financial support of up to RM15,000, depending on the severity of the accidental disability. If any of these unfortunate events occur, you or your next of kin can file a claim with the PolicyStreet team, and we’ll guide you through the process.
Why did you decide to develop this particular insurtech product?
What started as a simple observation of a spike in road accidents during festive seasons has blossomed into a strategic partnership with Direct Lending. Through deep discussions and comprehensive market research, we unearthed a pressing need to provide financial protection to Malaysians travelling during these periods. This need is particularly crucial for those relying on auto service financing to ensure their vehicles are roadworthy for the journey back to their hometowns.
By embedding this microtakaful into Direct Lending’s Auto Service Financing Plan, we’re not only addressing the immediate need for financing vehicle repairs but also enhancing financial inclusivity. This collaboration allows us to tackle two significant issues simultaneously, ensuring that all Malaysians can travel safely and confidently during festive seasons.
How does the partnership between Direct Lending and PolicyStreet work?
The partnership between Direct Lending and PolicyStreet is all about making financial services more accessible for Malaysians.
Direct Lending provides convenient payment plans for car repairs through its Auto Service Financing Plan, while PolicyStreet adds an extra layer of protection with DirectCare+ microtakaful.
This collaboration is our way of ensuring that Malaysians can travel safely and worry-free, especially during festive seasons.
How do you see the insurance industry evolving in Malaysia over the next 12 months?
Over the next 12 months, we anticipate a continuous rise in microinsurance and microtakaful products, catering to the specific needs of individuals and offering more accessible coverage options.
Embedment of insurance into other financial products, such as loans and savings plans, is also expected to increase, providing customers with more seamless and integrated solutions.
Additionally, there will likely be a greater emphasis on customisation, with insurers offering more personalised products and services to meet the diverse needs of consumers.
Overall, these developments are set to make insurance more inclusive, convenient, and tailored to individual needs in Malaysia.
What’s next for PolicyStreet?
At PolicyStreet, we’re dedicated to creating insurance solutions that cater to the evolving needs of our clients. Our commitment to customer-centricity ensures that our products are not just relevant but also accessible to individuals and businesses alike.
Focusing on forging deeper partnerships and expanding our network, we aim to continue embedding insurance into the daily lives of Malaysians, making financial security a fundamental aspect of life. This approach allows us to reach more people and provide them with the protection they deserve.
Furthermore, we are steadfast in our mission to serve the underserved and underinsured segments of society. We believe in bridging the protection gap by offering insurance solutions that are convenient, affordable, and relevant.
As we move forward, these principles will remain at the core of everything we do, driving our efforts to make insurance more inclusive and accessible for all Malaysians.