𝐖𝐢𝐭𝐡𝐝𝐫𝐚𝐰 𝐭𝐡𝐞 𝐧𝐨𝐭𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝟒𝟎-𝟕𝟎% 𝐡𝐢𝐤𝐞 𝐢𝐧 𝐦𝐞𝐝𝐢𝐜𝐚𝐥 𝐢𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐩𝐫𝐞𝐦𝐢𝐮𝐦𝐬 𝐧𝐞𝐱𝐭 𝐲𝐞𝐚𝐫

The legality and legitimacy of life insurance companies issuing the letter of notification to policyholders of a hike in medical insurance premiums by 40-70% next year is in question following Bank Negara’s firm denial that they had ever granted such approval. The Bank Negara Governor himself, in a briefing to unity government MPs on 10 December in Parliament, had insisted that no such approval was given to life insurance companies.

Instead, Bank Negara will only make a decision on the 40-70% hike in medical insurance premiums by the end of this month.

This denial by Bank Negara contradicts the claims by life insurance companies that they can issue such a letter of notification to policyholders because prior approval to issue the notice of 40-70% premium hike had already been obtained from Bank Negara. Life insurance companies should therefore show proof that they have indeed obtained such an approval from Bank Negara or do the right thing by withdrawing the notification of 40-70% hike in medical insurance premiums next year.

LIM GUAN ENG
MP FOR BAGAN