KUALA LUMPUR: Bank Negara Malaysia has been asked to look into the increase in insurance premiums.
Bayan Baru MP Sim Sze Tzin said the central bank should not simply dismiss the higher premiums as a business decision.
"Bank Negara should not say this is a free market or a willing seller willing buyer thing. This is not right.
"If the Domestic Trade and Cost of Living Ministry can investigate over a 10 sen price increase in eggs, why can't Bank Negara look into this matter as well, which saw premium increases by hundreds of ringgit," he told a press conference held at the Parliament media centre today.
He claimed that some consumers have chosen to cancel their medical insurance and rely on government hospital services instead.
"This could indirectly strain public healthcare and particularly impact lower-income groups, as they would experience longer waiting times in government hospitals."
During the press conference, Sim also criticised Association of Private Hospitals Malaysia (APHM) president Datuk Dr Kuljit Singh for defending the premium increases as reasonable.
"It is very unfortunate that he is trying to justify the unjustifiable.
"It is well-known that the increase in healthcare insurance premiums have close links to private hospital charges."
Dr Kuljit yesterday said the amount of increase in insurance premiums must be equitable to all parties, particularly patients and policyholders.
He said the premium increases were justified as the ecosystem must support developments in medical care and technology, which came at a cost to providers, patients and payors such as insurers.
Recently, Sim said that he would be meeting not only with insurance companies but also with private hospitals to gather more information.
He and other PKR MPs have started an initiative to collect information on the rising charges of private hospitals and medical insurance premiums.
"We have already received 71 complaints, and we want more people to file complaints so we can learn more, in addition to addressing the issues surrounding private hospital charges," he said.
It was reported that medical insurance premiums are expected to rise between 40 and 70 per cent next year, following notices sent by insurance providers to policyholders citing the rising cost of medical care in private hospitals as the primary reason.