The calculation of death / total permanent disability (TPD) or critical illness (CI) claim payment amount is based on the assessment carried out by the Insurance/ Takaful Panel using the latest reducing schedule balance.

Upon receipt of claim payment from the Insurance/ Takaful, LPPSA will credit the said amount to settle the outstanding balance. For any excess payment amount will be refunded to the customer or Next of Kin. If there is still a outstanding balance on the account, LPPSA will issue a demand notice to the customer or Next of Kin to pay the outstanding financing balance.

Customer/Next of kin will receive Pengesahan Baki Pembiayaan Perumahan letter once the claim payment is received from Insurance/Takaful panel. If customer/Next of Kin did not receive any correspondence letter from LPPSA or Insurance/Takaful Panel, please submit an inquiry via e-Ticket.

For financing account with an outstanding balance after the claim payment is received, the possible causes are:

i. Insufficient of claim amount received due to arrears on the financing repayment; or
ii. No Insurance/ Takaful coverage; or
iii.Customer’s cause of death / total permanent disability (TPD) or critical illness (CI) is under exclusion of customer’s MRTA/ MRTT policy benefit.
iv.The MRTA/ MRTT policy has expired before the date of death, TPD or CI

In the event of the customers’s death, the Next of Kin or Head of Department should notify LPPSA and enclose the relevant documents as follows:

i. Customer Death Notification Form; or
ii.Customer Total Permanent Disability or Critical Illness Notification Form.

The required form can be downloaded from LPPSA official website at >> Here and be posted to LPPSA address or submitted online via LPPSA e-ticket

For the purpose of settlement of outstanding balance, the Next of Kin is required to make payment using the CIMB Virtual Account number (VA) 98 «customer's new account number» which is dedicated to the customer through the method stated below:

1) Cash at CIMB Counters throughout Malaysia, or;
2) Online through IBG, IBFT, RENTAS, Maybank2U or CIMBClicks, or;
3) CIMB Bank self-service machine (ATM or Cash Deposit)

The payment procedure (E-payment) can be referred to the LPPSA official website >> Here

LPPSA will proceed with death claim compensation to the Insurance/ Takaful Panel to settle the remaining outstanding financing balance of the deceased customer account and will refund any excess payment, if any to the spouse or Next of Kin once financing has been settled.

For accounts which has an outstanding balance after the death claim compensation payment is received, LPPSA will issue a claim notice on the outstanding balance to the Next of Kin to settle the outstanding amount.

LPPSA will only return the grant and title documents and refund the excess credit balance (if any) after the Next of Kin submit one of the following copies of documents:

1. Surat Perintah Pembahagi Harta, Ordinance (Pembahagian) Harta Pesaka Kecil,1985 yang lengkap dengan maklumat Harta Alih yang kena dibahagikan dan Harta Tak Alih yang kena dibahagikan sekiranya harta bernilai kurang dari RM 2,000,000; atau
2. Surat perintah Mahkamah bagi asset harta bernilai kurang atau lebih RM 2,000,000; atau
3. Surat Kuasa Pentadbiran (Letter Of Administration) yang dikeluarkan oleh pegawai Pejabat Tanah atau Mahkamah Tinggi; atau
4. Surat Kuasa (Grant of Probate) yang dikeluarkan oleh Mahkamah Tinggi.

The actual Next of Kin is subject as stated in one of the documents stated above.

For the return of credit balance, the Next of Kin must complete the Refund and Return of Title Document Application Form. This form can be downloaded from the LPPSA website >> Here

Customers who have been diagnosed with a critical illness and have received a disability pension through an Ex-Gratia claim can submit a claim for compensation to LPPSA to be sent to the insurance / takaful panel by sending the following documents:

1.     Disability / critical illness notification form;
2.     Letter of application for critical illness compensation by the customer;
3.     Health Report from the hospital; and
4.     Retirement approval letter from the Department due to health problems.

LPPSA recommends that customers refer to the respective insurance / takaful panel to identify the types of coverage covered. If the illness meets the stipulated conditions, in addition to the medical report certified by the Medical Board, the insurance panel will make a direct payment to LPPSA and the final status will be notified to the customer after compensation is confirmed by LPPSA.

However, if the customer’s application does not meet the stipulated conditions, the customer's must contact the LPPSA for pension deduction.

Copies of documents can be certified by officers (Grade 41 and above) currently serving in all Ministries, Federal and State Departments, Statutory Bodies, Uniformed Bodies, Lawyers, Government School Teachers/Headmasters/School Principals, as well as Village Chiefs/Penghulu.