Why are Covid-19 death aid claims facing payment delays?

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Covid-19 Death Aid Claims Face Delays Due to Processing Backlogs and Queries

Disbursement of the special aid for next-of-kin of Malaysians who died from Covid-19 is experiencing significant delays, with a substantial portion of claims still pending or under review. As of the latest information, only 59.5 per cent of the claims have been successfully paid out. This leaves a considerable number of applications in various stages of the process, contributing to the overall lag in providing financial support to grieving families.
Processing and Querying Stages Affect Payouts

A significant portion of the outstanding claims are currently caught in processing or query stages, hindering timely disbursement. While 59.5 per cent of applications have been paid, an additional 17 per cent are still undergoing processing. Furthermore, 20.7 per cent of applicants are currently being queried, indicating a need for further information or clarification before their claims can be finalised. Only a small fraction, 2.8 per cent, have been outright rejected.
Aid Eligibility and Disbursement Structure

The special aid, capped at RM5,000, is designated for the next-of-kin of Malaysian citizens who succumbed to Covid-19. The policy specifies that the payment is to be disbursed directly to a single designated next-of-kin upon successful application. The conditions for eligibility and the direct disbursement mechanism are key components of the aid's framework.
Concerns Regarding Fund Availability and Processing Efficiency

Concerns have been raised about the efficiency of the processing system and the potential adequacy of funds within the National Disaster Management Agency's (Nadma) Covid-19 fund. The significant number of claims still being processed or queried suggests potential bottlenecks in the administrative workflow. While the specific reasons for these processing delays and the nature of the information requested during the querying phase are not detailed, the overall slow pace has prompted calls for expedited action from the government.

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Why are Covid-19 death aid claims facing payment delays?

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