Malaysia

Insurance premium hikes: Who is to blame?

The increase was done rather silently and discreetly by insurance companies and caught most Malaysians by surprise.

Updated 1 year ago · Published on 01 Mar 2025 7:17AM

Insurance premium hikes: Who is to blame?
Some pointed at the insurance companies while others claimed it was the increasing medical costs. - March 1, 2025

LATE last year, many Malaysians received notices from their insurance companies about a hike in premiums - some up to the point where a large number were reportedly forced to give up their policies.

The increase was done rather silently and discreetly by insurance companies and caught most Malaysians by surprise.

Following the shocking news, the blame-game soon followed - who was responsible for the premium hikes?

Some pointed at the insurance companies while others claimed it was the increasing medical costs.

However, according to sources in the medical fraternity, insurance companies often set limits on the kind of kind of treatment a private hospital should provide, but at the same time, continues to increase premiums.

The source which spoke to Getaran, (The Vibes' Bahasa Malaysia sister portal) said medical charges were not imposed as one likes but strictly based on the kind of treatment given.

"You must realise that hospitals invest heavily on technology, specialists and research to ensure their patients receive the best.

"However, sometimes our hands are tied as insurance companies often reduce and limit the coverage, making it difficult for patients to receive the best treatment though they have insurance," said the source.

The source revealed that insurance companies should not take on the role as doctors and determine the level of treatment a patient should receive.

"They probably impose these restrictions for fear that their bills may get too high.

"This should not be the case as it then defeats the whole purpose of buying insurance and paying such high premiums," said the source.

Several patients who spoke to Getaran also vented their frustrations.

"A number of my family members and friends were forced to give up their insurance due to the high premiums and now rely on government health care.

"It is very difficult for them now as government clinics and hospitals are already stretched," said one patient.

Another patient said insurance companies are placing profits above patients and did not care about anyone else but themselves.

"Insurance companies are just sucking the life out of us. How can an average earning Malaysian like me afford insurance for a family of five?

"My wife and I jointly earn about RM10,000 a month ... looks like we both have to give up our policies soon and just maintain it for our kids," added another patient. – March 1, 2025

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