Bayan Baru MP Sim Tze Tzin has called on major insurance providers to extend the current reinstatement application period by an additional 60 days, stressing the need for more time to assist individuals who have had to terminate their medical insurance policies.

Sim explained that this interim measure, which is due to expire on 30 June, has already shown positive results, with an uptick in policy reactivations since it was introduced by Bank Negara Malaysia. “This period is crucial. Lapsed policies may still be reinstated without adversely affecting existing coverage, but action must be taken before the deadline,” he added.

Sim also urged individuals who had discontinued their insurance due to financial hardship or rising premiums to contact their insurers to explore options for reinstating their coverage. He also called on insurance agents and the wider public to spread awareness of the reinstatement opportunity.

“I also urge insurance agents and Malaysians to share this important information with friends and family. Do not wait until it’s too late,” he said.

To underscore the importance of this initiative, Sim shared a true account from the NAMLIFA Central Region concerning a policyholder referred to as “Mr Ravi”. Mr Ravi began an insurance policy in 2014 at the age of 27, with his comprehensive coverage initially costing RM200 per month. Following two premium hikes, this amount had risen to RM273.24 by 2023. The policyholder faced financial hardship after losing his job during the Covid-19 pandemic and was unable to maintain the payments.

“This financial strain led to him cancelling his policy in late 2024, leaving him uninsured when he had a stroke. Fortunately, Bank Negara Malaysia’s interim measure allowed him to reactivate his policy without undergoing underwriting, enabling him to claim for treatment, though many remain unaware of this opportunity.”

(Source: The Star) 

• TAGS:
• Bank Negara Malaysia
• BNM
• Insurance
• Insurance Policy
• Medical Insurance
• Sim Tze Tzin