'Cap insurance premium hike at not more than 10pct'
Several PKR lawmakers have urged Bank Negara Malaysia to cap any increase in insurance premium rates at 10 percent.
In a joint statement today, the lawmakers argued that the maximum rate is justified as not all who take up insurance would be filing a claim, adding the rate is also in tandem with the regional healthcare inflation rate.
“Thus, we call for a reasonable hike to ensure insurance remains...
Summary:
Cap insurance hikes at 10 percent for M40 affordability.
Probe insurers over 40-70 percent premium increases.
Premium hikes surpass 15 percent healthcare inflation, straining public healthcare.
Several PKR lawmakers have urged Bank Negara Malaysia to cap any increase in insurance premium rates at 10 percent.
In a joint statement today, the lawmakers argued that the maximum rate is justified as not all who take up insurance would be filing a claim, adding the rate is also in tandem with the regional healthcare inflation rate.
“Thus, we call for a reasonable hike to ensure insurance remains affordable to the M40 group.
“Insurance coverage should never become an exclusive service meant for the ultra-rich,” they stressed.
The lawmakers who signed the statement were Bayan Baru MP Sim Tze Tzin, Tebrau MP Jimmy Pua, Segamat MP R Yuneswaran, Miri MP Chew Choon Mun and Senator Amir Md Ghazali.
Probe rate hike
On Nov 27, Sim urged BNM to investigate insurance companies for excessive profiteering by increasing premiums.
This comes after the Life Insurance Association of Malaysia (Liam) announced that they would be hiking insurance premiums by 40 to 70 percent next year, which triggered a backlash from many quarters.
Yesterday, Finance Minister II Amir Hamzah Azizan said BNM will announce further details on interim measures to address the rise in insurance premiums next week.
“As informed by Prime Minister Anwar Ibrahim on Tuesday, BNM is refining several interim and immediate measures,” he said while winding up the debate on the Supply Bill (Budget) 2025 at the policy stage for his ministry in the Dewan Negara.
‘Way higher than healthcare inflation’
On that note, the lawmakers said during a briefing by BNM on Dec 10, the central bank mentioned that the healthcare inflation rate in Malaysia stands at 15 percent, compared to the 11.1 percent recorded in other Asia-Pacific countries.
However, the PKR leaders said they received complaints from the public that they will be facing a hike of up to 78 percent in their insurance premiums.
“This rate is far beyond the 15 percent healthcare inflation recorded in Malaysia. As such, we reject this,” they stressed.
If the M40 community could no longer afford insurance premiums due to rising premiums, the lawmakers said the former would have no choice but to seek treatment in public health facilities – which would further burden the already strained services.
“Therefore, we urge BNM to be firm in its role as a regulator and fix this.”
