Insurance scheme covers PTPTN borrowers in case of tragedy

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Joice Chin

PETALING JAYA: Student loans given out by the National Higher Education Fund (PTPTN) is covered by an insurance scheme that ensures the loan is settled in the event of any tragedy.

PTPTN emphasised this message in a special ceremony to present the family of Joice Chin, a young woman killed when a crane hook fell on her car two months ago, with a loan settlement certificate.

“The loan was considered settled under the PTPTN Takaful scheme, so the family would not now be burdened with having to worry about repayment,” PTPTN Deputy Chief Executive (policy and operation) Mastura Mohd Khalid said, according to TheSun.

Mastura gave the certificate as well as a cheque for RM1,500 to the victim’s aunt, Yeoh Ang See, who represented the family at the Gat Lebuh Nordin flats in George Town, Penang, yesterday.

Chin died instantly in the freak accident which occurred on Aug 25 when she was driving along Jalan Raja Chulan in Kuala Lumpur, and passing by a construction site during the evening rush hour.

Mastura said the loan was considered settled under the scheme and that the family now did not have to worry about repayment.

“I am glad there is such a scheme for borrowers,” Yeoh was quoted as saying by TheSun.

Mastura told reporters that RM99.8 million worth of loans given to 6,421 students, have been waived by PTPTN under the insurance scheme, from the time the loan programme was started in 1997.

Speaking on action taken to get borrowers to repay their loans, Mastura said more efforts would be made to increase the number of repayments via salary deductions or direct debit.

“Only 10 per cent of borrowers were paying back their PTPTN loans through salary deduction and we hope the number could be 20 per cent by the end of the year,” Mastura was quoted as saying.

She also expressed her support for the Budget 2017 incentives for PTPTN borrowers, as announced by Prime Minister Najib Razak last Friday, hoping they they would take advantage of the discounts and other benefits to settle their outstanding amount.