Based on a survey conducted in Indonesia among those victims of natural disaster such as tsunami in Acheh, major flood in Jakarta, earthquakes in Bengkulu, Yjogja, etc, surprisingly the result indicated that less than 2% among them are insured with at least one policy whether life or general. The survey didn't touch on whether the coverages are sufficient or not. As a result, most of those victims became poorer compared to their position prior to the disaster. I know a person from Acheh who was a successful goldsmith and among the rich & famous prior to tsunami. Unfortunately, he is now left with no business, properties, assets, etc. Poor him.
Let's imagine if those victims are fairly covered by some kind of takaful/insurance coverages whether life or general policies. I am very sure that they would be fairly or more or less (in terms of assets) the same compared to where they were before the disaster. Their houses will be rebuilt using takaful/insurance claims. Their cars will be replaced, if total loss. Of course, takaful/insurance can't replace any loss of lives but at least some compensation be given in the form of monetary for the family to proceed their life as usual especially if their breadwinner pass away. The compensation can at least ensure that the family can meet their daily needs and perhaps some for future planning.
I am confidence that the recent earthquakes in Padang, Sumatera, Indonesia, will caused hundreds of people poorer and lesser assets. I was told that many of those victims willing to become beggars on the street due to severe financial constraint as a result of the earthquakes.
A manager in Jakarta admitted to me that her family was once amongst the richest in their community. Unfortunately, due to the illness of her father almost all their fortune just vanished within short period of time in order to cover for the medical cost. Despite of all the efforts especially money the father passed away peacefully. She mentioned to me that should she had met me earlier and learn about the medical takaful coverage she strongly believe that she won't end up as a manager in a hotel today with a salary of about only Rp2 million (US$ 200) a month.
A friend of mine in Shah Alam, Malaysia who is also a takaful agent faced the same fate due to 'ignorance' of the benefit of takaful. Surprisingly, despite actively promoting takaful products to his clients he himself failed to realize the benefit himself. He was admitted to a hospital due to a heart attack and not surprisingly he and his family were surprised with an exorbitant medical bill. Significant portion of his hard earned savings just vanished. The treatment continues under post-hospitalization and the bills never stop haunted them. He regretted for not participating any reasonable medical takaful coverage and it's too late to do so after the incident unless for other illnesses.
So let's spread the words around on the benefits of insurances and seek professional advice from those qualified to help you. Act now before it's too late!!!
