By DayakDaily Team
KUCHING, Aug 28: The government has been urged to intervene to safeguard the rights of ordinary citizens, following allegations that some insurance companies are exploiting consumers by bypassing Bank Negara’s interim policy, which caps medical insurance premium increases at 10 per cent, and imposing steep hikes on policyholders.
Stampin MP Chong Chieng Jen slammed these firms for sidestepping the interim policy amid rising healthcare and medicine costs.
“Nevertheless, I have brought to the attention of the Deputy Minister of Finance that at least one local insurance company acted to circumvent the ‘not more than 10 per cent increase’ interim policy announced by Bank Negara,” he said in a statement today.
He highlighted the case of a 53-year-old policyholder who has been insured since his 30s and was guaranteed renewal rights up to age 90. This year, his renewal premium was RM4,150. Next year, it would jump to RM7,112 — a staggering 71 per cent increase — if he wants to maintain coverage until 90. If he chooses to pay the old premium, his policy would lapse at age 55.
“It is common knowledge that as we age, we are more likely to fall ill and need insurance coverage. Yet, the company unilaterally changed the terms, stripping away the policyholder’s right to renew up to 90 unless he pays a hefty 71 per cent increase this year, with even higher increases likely in the future.
“This is an exploitation of consumers’ rights, particularly affecting ordinary people,” he said, urging government intervention.
Chong noted that a joint-ministry committee led by the Minister of Finance II and the Minister of Health was set up in June 2025 to address the escalating costs of private healthcare and medicine, which in turn drive up medical insurance premiums.
“While the committee works on long-term solutions, Bank Negara has announced an interim policy capping medical insurance premium increases at 10 per cent,” he disclosed, referring to a written answer received from the Ministry of Finance this morning. — DayakDaily
