KUCHING: Stampin MP Chong Chieng Jen has called on the Government to take firm action against insurance companies that exploit policyholders by imposing excessive premium increases despite Bank Negara’s interim ruling.
Chong revealed that the Government had, in June, set up a joint-ministry committee chaired by the Minister of Finance II and the Minister of Health to address the rising costs of private healthcare and medicine, which have led to increasing medical insurance premiums.
While the committee works on long-term solutions, Bank Negara has issued an interim policy capping premium hikes at no more than 10 percent.
In a written reply received today from the Ministry of Finance, Chong said he was informed of the policy. His question, listed as number 10 in the Order of Paper, could not be addressed during the one-and-a-half-hour question session in Parliament.
However, Chong highlighted to the Deputy Finance Minister that some insurance companies have found ways to circumvent the policy. He cited a case involving a policyholder who has maintained his medical insurance since his 30s, with the assurance that it would be renewable up to the age of 90. Now aged 53, the policyholder faces a sharp increase in his premium from RM4,150 this year to RM7,112 next year, a 71 percent jump if he wishes to retain the renewal right until 90. If he continues paying the same premium, his policy will only be valid until the age of 55.
“This is outright exploitation of consumers’ rights. As people age, their need for medical coverage increases, yet insurance companies are unilaterally altering terms and imposing unreasonable hikes. Without government intervention, ordinary consumers will continue to be taken advantage of,” Chong stressed.
By Connie Chieng