9th January 2025 - 2 min read
Deputy Finance Minister Lim Hui Ying has reiterated that all insurance companies must implement premium-sharing measures for policyholders starting from 15 January 2025. She emphasised that individuals who received premium increase notices last year can contact their insurers from this date to request premium sharing, and insurers are required to make the necessary adjustments.
Lim pointed out that the 15 January 2025 deadline is a directive from Bank Negara Malaysia (BNM) and must be strictly adhered to. Insurers are mandated to cap annual premium increases for medical insurance at 10%, ensuring the cumulative increase by the end of 2026 does not exceed 30%. “For the government, the well-being of the people comes first,” she said.
She also said that within the established cap, insurers are barred from altering policy terms or reducing coverage. Any new insurance products offered must remain separate and must not impact existing policies under the premium-sharing arrangements. She stressed that premium sharing must guarantee the protection of policyholders’ benefits.
To manage the anticipated influx of inquiries, Lim announced that insurance companies are required to establish dedicated hotlines from 15 January 2025 to handle premium adjustment requests more effectively. She explained that while the process may seem straightforward, insurers must be prepared for a significant volume of calls, as BNM has concluded its discussions with them.
Lim also addressed the broader context of premium hikes, which she attributed to interconnected issues involving the Ministry of Health (MOH), private hospitals, and insurance companies. She argued that resolving these challenges requires a comprehensive and balanced approach.
“We need a unified, standardised system for medical services and claims to ensure transparent and consistent medical fees,” she said. Citing BNM data, Lim also highlighted the significant disparities in medical costs that need to be addressed.
Last month, insurers had agreed to limit annual increases in medical and takaful health insurance (MHIT) premiums to 10% over a three-year period, effective until the end of 2026.
(Source: NST, Sin Chew Daily)
Samuel writes about personal finance and financial news, focusing on how banking updates, policies, and promotions affect everyday money decisions. He enjoys making complicated financial topics easier to follow. Outside of writing, he spends his time watching TV shows and occasionally convincing himself he will only watch one episode.
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