Cuepacs wants lower management charges for residential insurance

KUALA LUMPUR (June 26): The Congress of Unions of Employees in Public and Civil Services (Cuepacs) called on the Public Sector Home Financing Board (LPPSA) to lower management charges for residential insurance which is considered high and burdensome to civil servants.

Its president, Datuk Azih Muda, said the management charge of 45% for residential insurance premiums set by LPPSA was too high, causing the monthly payment for housing loans to increase, making it difficult for civil servants to own houses.

“Of the 45% management fee, 15% of the commission was taken by LPPSA while about 30% of the commission was taken by the the insurance company and agent.

“Hence we ask the LPPSA to review the management fees in the insurance coverage so that civil servants do not have to pay a high premium,” he told reporters after a Cuepacs Aidilfitri event here today.

Azih said the matter was one of the items on the agenda discussed at the Cuepacs Congress Council meeting for the 2016 to 2019 session which took place in the capital yesterday.

According to him, up to now, about 55% of the 1.6 million civil servants have taken housing loans from LPPSA.

He said Cuepacs would submit the issue to Bank Negara as soon as possible and hoped that the management charges would be reduced so that more civil servants, especially young people could afford to purchase homes.

Meanwhile, Deputy Finance Minister Datuk Amiruddin Hamzah, who was at the function, said the ministry would look into the issue.

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