Digital takaful operator OUCH! has introduced what it says is Malaysia’s first self-initiated employee Takaful plan, aimed at making basic protection more accessible to workers in small and medium enterprises (SMEs).
The plan allows employees to sign up directly through a mobile app, with optional contributions from employers.
The fully digital process removes the need for agents or paperwork, reducing costs and administrative burden for SMEs.
Takaful coverage remains low in Malaysia, especially among SMEs. A 2023 PwC report found that only 15% of SMEs offer insurance or Takaful benefits, with micro-SMEs making up a large part of the uninsured segment.
Under Budget 2025, the government has allocated RM5 million for micro-Takaful subsidies and introduced RM30 Perlindungan Tenang vouchers to encourage uptake among low-income earners.
OUCH!’s flagship plan, Pusara Pro, offers death and compassionate benefit coverage without savings or investment-linked components.
Coverage is not tied to employment, and employees can continue their contributions even if they leave their jobs.
Registration is completed via e-KYC and a short health questionnaire.
Once approved and employer contributions are made, certificates are issued digitally.
The plan is open to all Malaysians and follows Shariah principles, making it suitable for both Muslim and non-Muslim employees.
To support adoption, OUCH! offers onboarding sessions, in-app tools, and plain-language materials.
Employees can manage their coverage, update details, and assign beneficiaries through the app.
The initiative supports Bank Negara Malaysia’s Digital Insurance and Takaful Operator (DITO) framework and Financial Inclusion Blueprint 2022–2026, which aim to improve access to financial protection for underserved groups.
“We built this plan because we saw a clear gap in how SMEs could provide real, sustainable welfare to their employees.
We’ve removed the middlemen, the long fine print, and the financial complexity. What’s left is a tool that helps businesses show their people they matter—not just in words, but in action.”
said Shazy Noorazman, Chief Executive Officer of OUCH!.
Featured image: Edited by Fintech News Malaysia, based on image by farknot via Freepik
