Policyholders to pay more for coverage in Malaysia

 20-Apr-14, The Star

Faced with higher claims from rising medical costs, many insurance companies have increased their charges and premiums by up to 20%.

National Association of Malaysian Life Insurance Field Force and Advisers (Namlifa) deputy president Kho Chui Ing said most companies had adjusted their charges and premiums for medical, health and investment-linked policies over the last few months to cope with medical inflation.

Image: The Star Online

“Some companies are offering policy upgrades and at the same time increasing premiums while others just raise the existing policy charges and premiums,” he said, adding that insurance companies only needed to issue a 30-day written notice to policyholders for the hike to take effect.

Admitting that agents have a tough time explaining the increases, Kho said Namlifa had a duty to protect the welfare of its 12,000 members and policyholders.

General Insurance Association of Malaysia (PIAM) chairman Chua Seck Guan said medical and health insurance, which accounted for RM920mil of the sector’s total market share last year, was projected to grow as demand in the healthcare sector increased in line with the country’s development as a medical hub.

 Read the full article 

 Insights