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THE government has been urged to intervene on the hefty spike in medical insurance premiums of up to 70 per cent next year as announced by the Life Insurance Association of Malaysia (LIAM).
MCA vice-president Datuk Ir Lawrence Low said a detailed investigation is warranted given claims by insurance companies attributing these premium jumps to a sudden rise in medical costs.
“Despite the government's request to review the price hike, some insurance companies remain determined to significantly raise premiums under the pretext of medical cost inflation, causing premiums for many policyholders to double.
“As a result, many policyholders can ill-afford these high costs and are forced to cancel their insurance coverage,” he said in a statement.
This is not just an issue of premium hikes - it exposes the deep-rooted flaws in the national healthcare and insurance systems, said Low.
He said it is thus incumbent on the government to take a stronger stance.
“MCA urges BNM to thoroughly investigate the pricing strategies of insurance companies to ensure that any price flights are based on transparent and reasonable cost analysis, and not exploitatively cite inflation as an excuse.
“The Ministry of Health must also strengthen its monitoring of medical costs in private hospitals to prevent these cost burdens from being passed on to policyholders,” he said.
Low said the government cannot allow a situation where people are deprived of medical treatment due to soaring insurance premiums.
“If the government fails to address this dilemma, this vicious cycle will further erode the public’s trust in the national insurance system.
“Medical insurance coverage is a key pillar to the sustainability of our citizens' well-being. No one should exploit this issue for personal gain. Therefore, the government needs to intervene immediately,” he stressed. - November 7, 2024