BANK Negara (BNM) and the Ministry of Health (MOH) need to intervene and take appropriate action against insurance companies accused of 'taking advantage of the people's hardship' by increasing medical insurance premiums by up to 70 per cent next year.
Lim Guan Eng (PH-Bagan) during the debate session on the Finance Bill 2024 in the Dewan Rakyat today said that the action was clearly unethical, especially since the insurance industry was reported to have made high profits in the first half of this year.
"The action by insurance companies to increase medical premiums by between 40 and 70 per cent (next year) is indeed immoral and unethical.
“They have made a lot of profit but still want higher profits. BNM and MoH should intervene and address the rising medical costs of private hospitals, which are being used as an excuse to increase premiums," he said as reported by Berita Harian.
Media reports earlier said medical insurance premiums were expected to increase by up to 70 per cent next year, leaving some policyholders with no choice but to consider terminating their policies due to the increasing monthly cost of premiums.
Guan Eng also raised the concerns of 31 million Malaysians who see the increase as unreasonable given the current cost of living.
"Life insurance companies are already making a profit, but they still want to make more without considering the burden on ordinary citizens who are struggling to support their families amid the rising cost of living.
"A sudden increase in medical insurance of 40 to 70 per cent is indeed unreasonable when workers' salaries have never increased by such a huge amount.
"If salaries have not increased, why do we want to allow insurance premiums to increase by 70 per cent?" he asked.
Issue raised by five other MPs
The same issue was also raised by five PKR Members of Parliament, namely Sim Tze Tzin (PH-Bayan Baru), Jimmy Puah (PH-Tebrau), Taufiq Johari (PH-Sungai Petani), R. Yuneswaran (PH-Segamat) and Chiew Choon Mun (PH-Miri) in Parliament today.
They requested an investigation and review of insurance companies and takaful operators (ITO) in this country who were allegedly unfair, namely not only increasing insurance premiums suddenly but also providing protection that did not commensurate with the rates charged.
Tze Tzin gave an example of the situation experienced by an elderly female insurance contributor who complained about the unfairness of the ITO.
"A 74-year-old female contributor contributed faithfully for 18 years but the sum insured ('sum insured') was only RM60,000.
"In the past 10 years, her insurance premiums have increased almost every year. For example, in 2021 he will have to contribute RM5,615, RM6,065 (2022) and RM10,815 (2024).
"If this increase continues, then he will contribute RM60,994 over the 'sum insured' of RM60,000.
“This situation is very unfair to a retiree who is no longer working and this is what has made the people angry because the increase in insurance premiums does not commensurate with the protection received," he said. - December 4, 2024
