KUALA LUMPUR: Deputy Finance Minister Lim Hui Ying has reaffirmed that all insurance companies must implement premium-sharing measures for policyholders starting from Jan 15.
According to a Sin Chew Daily report, Lim said that individuals who received premium increase notices last year can contact their insurers from Jan 15 to request premium sharing, and insurers must make the necessary adjustments.
She highlighted that the Jan 15 deadline is a directive from Bank Negara Malaysia (BNM) and must be followed. Insurers must cap annual premium increases for medical insurance at 10 per cent, ensuring the cumulative increase by the end of 2026 does not exceed 30 per cent.
"For the government, the well-being of the people comes first," she said.
Lim said that within this cap, insurers are prohibited from altering policy terms or reducing coverage. Any new insurance products offered must remain separate and must not affect existing policies under premium-sharing measures.
"Premium sharing must ensure that policyholders' benefits remain protected," she added.
To handle the potential influx of inquiries, Lim said insurance companies must establish dedicated hotlines starting from Jan 15 to better handle premium adjustment requests.
"BNM has completed discussions with insurers. While the process appears simple, insurers must be prepared for a high volume of calls," she said.
She also said that premium hikes are part of broader issues involving the Ministry of Health (MOH), private hospitals, and insurance companies. Resolving these interconnected 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, adding that BNM data highlights significant disparities in medical costs.
In earlier reports, insurers have agreed to cap annual increases in medical and takaful health insurance (MHIT) premiums at 10 per cent over a three-year period, effective until the end of 2026. This is expected to benefit at least 80 per cent of policyholders.