KUALA LUMPUR – Life insurance companies should withdraw the notifications sent to the policyholders that there will be a hike in medical insurance premiums by 40 to 70% next year following Bank Negara Malaysia (BNM) denying that it approved the companies to do so, said DAP chairman Lim Guan Eng.
The firms’ decision has drawn brickbats from policyholders and MPs, with the latter urging the government and BNM to properly monitor the situation, stressing that the people’s welfare and healthcare ecosystem are at stake.
In a statement, Lim, who is also Bagan MP, said that during a briefing held with unity government MPs in the Parliament on December 10, BNM governor Datuk Seri Abdul Rasheed Ghaffour insisted that the central bank has never given such approval for insurance companies to raise their premium rates next year.
Instead, BNM will only make a decision on the 40-70% hike in medical insurance premiums by the end of this month.
Therefore, the legality and legitimacy of actions taken by the life insurance companies in issuing the letter of notification to policyholders is questionable, said the senior DAP lawmaker.
“This denial by BNM contradicts the claims by life insurance companies that they can issue such a letter of notification to policyholders because prior approval to issue the notice of a 40 to 70% premium hike had already been obtained from BNM.
“Life insurance companies should therefore show proof that they have indeed obtained such an approval from BNM or do the right thing by withdrawing the notification of 40 to 70% hike in medical insurance premiums next year,” urged Lim.
Insurance and takaful operators, as well as the central bank, have cited rising medical costs, an increasing number of insurance claims, and greater utilisation of policies as among the reasons for raising premiums.
However, Prime Minister Datuk Seri Anwar Ibrahim said it is “very difficult” for the government to accept drastic hikes in private healthcare and insurance premiums.
On Tuesday, Anwar told the Dewan Rakyat that the government aims to keep private healthcare costs reasonable by introducing controls on diagnosis-related groups (DRG).
DRG, which is a system for classifying hospital patients into groups based on their clinical conditions and treatment needs, and thus the costs involved, is currently unregulated in Malaysia. – December 12, 2024