A growing number of policyholders are expressing frustration over the steep rise in private medical insurance premiums, leaving many to face a difficult decision: continue paying for coverage or cancel their policies altogether.
Julian Chong, a Facebook user, shared his experience of having to cancel his wife’s insurance policy due to a dramatic premium increase. “The monthly premium shot up from RM300 to RM700,” Chong explained. “The policy was originally supposed to stay fixed until the age of 80+, but it increased by 55%. The insurance company cited rising patient claims and hospital bills as reasons for the hike.”
Chong accused insurance providers of focusing on profit rather than policyholder welfare. “Bonuses and dividends to shareholders have increased,” he posted, sharing his frustration on the page of Bayan Baru MP Sim Tze Tzin, who has been vocal about the controversy surrounding premium hikes.
Sim revealed that MPs have received numerous complaints from concerned citizens about the rising cost of health insurance.
For 31-year-old executive Nurul Basha, who has three young children, insurance is an essential expense. “My kids get sick quite often, and I can’t afford hospital charges on my own,” she said. Currently, Nurul pays RM300 for two of her children and RM225 for her youngest. “I haven’t received any updates from my insurance agent yet, but we will continue with the coverage if the increase isn’t too significant,” she added, stressing the importance of medical insurance for families.
Nurul also acknowledged that many people may struggle with the premium hikes, particularly those who haven’t seen salary increases or are facing additional expenses.
For Kuala Lumpur-based assistant marketing manager April Wong, the price hike might be more manageable if it only applied to new policies, leaving existing policyholders unaffected. “I understand that price adjustments happen, but this sudden increase feels unfair,” Wong remarked. “When I bought the policy, I expected to pay a consistent price to secure my future, not be blindsided by an unexpected hike.”
She also noted that the price increase could have a significant financial impact on families, especially those with multiple policies. “An additional RM200 a month is like another phone bill. While some individuals might manage, it’s too much for breadwinners with families to support,” she added.
Vijayendiran Subrama, a social media user, also voiced concerns, calling for Bank Negara Malaysia to intervene. “Insurance companies have been hiking premiums relentlessly, and many elderly people have been forced to stop their coverage,” he wrote on X (formerly Twitter).
Reports indicate that medical insurance premiums are expected to rise by between 40% and 70% next year, following notifications sent to policyholders. Insurers have cited rising medical costs in private hospitals as the main reason for the increase.
In response to these concerns, the Life Insurance Association of Malaysia, the Malaysian Takaful Association, and the General Insurance Association of Malaysia issued a joint statement on November 28, acknowledging the public’s concerns. The associations emphasized that rising medical treatment costs, an increase in the utilization of healthcare services, and a growing prevalence of chronic diseases like diabetes were contributing factors. Additionally, an aging population has resulted in higher demand for medical care.
On the same day, Bank Negara Malaysia also issued a statement, urging insurers and takaful operators to reassess their pricing strategies to ensure a more reasonable adjustment. The central bank emphasized the need for insurers to take the impact on policyholders into account and provide options for those significantly affected by the higher premiums.
The insurance groups have pledged to stagger the premium increases and offer more flexible payment plans to help policyholders adjust to the changes.
As the debate over rising premiums continues, many policyholders are left wondering how much longer they can afford their coverage, and whether insurers will heed calls for greater transparency and more sustainable pricing models.
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