Questions and complaints pour in about pending hike

THE call to postpone the medical insurance price hike, supposed to take effect in 2021, has been supported by policyholders.

But there are also many who are unaware or unclear of the move, says the Federation of Malaysian Consumers Associations (Fomca).

“We received about 90 to 95 calls and emails about the price hike daily over the past two weeks, ” says Fomca president Datuk Dr Marimuthu Nadason.

Many complained about the price increase, while others also wanted more information about it after news reports on the move surfaced in the media.

Fomca, through its National Consumer Complaints Centre, also received about 12 complaints and queries a day since July, when some consumers began receiving notices of the price increase.

The price hike was initially supposed to be implemented in 2020, but insurance industry players decided to defer the move to 2021 in view of the pandemic.

A complainant, who wishes to be known only as Julia, 40, says she received a letter in October, informing her about the medical insurance repricing to take place on Jan 1,2021.

“It was a 23.6% increase, from my premium of RM165 a month to RM204.

“The increase is steep and I was given limited options of alternative plans, which I found unfavourable and put me at a disadvantage, ” says the housewife.

She says the other option was to pay a smaller increase in premium but required her to pay a high deposit if she were to be hospitalised.

“I urge the insurance companies to abolish the repricing as no interaction was made with the policyholders.

“It should be done with some agreement from policyholders with an acceptable timeframe given the current situation, ” Julia adds.

Company executive Vanessa Wong, 32, says she was notified in September by her insurance agent about the medical insurance premium hike but the company waived the charges for this year.

“For next year, my premium is supposed to increase by 20%. So from RM200 a month, I would have to pay RM240.

“But the company offered the option to reduce my investment value in the scheme, so that I wouldn’t have to fork out the extra 20%.

“This is somewhat better than taking away a bigger portion of my disposable income, but I believe 20% is too much of an increase, ” she says.

She questions how those in the lower income bracket can afford the extra costs.

“The RM40 increase would mean fewer visits to fancy restaurants for me.

“But for those with smaller incomes, RM40 is a big sacrifice and may be too much for them to afford, ” Wong adds.

Mohd Shayuti Hassan, 36, a restaurant manager, says he was not informed about the price increase but felt it was burdensome.

“I am already paying about RM350 a month for medical insurance.

“This price increase will affect my finances in such tough times, ” he says.

Agreeing that this is not the right time to impose hikes, Mohd Shayuti urges insurers to explain to policyholders in more detail about the move.

“Even if the price hike was about RM50, it is significant to me because our salaries are not increasing quickly enough.

“We would end up suffering more, ” he adds.

Dr Marimuthu says Fomca believes the insurance industry should go through a complete revamp as it is important for protection and medical purposes.

“The average man on the street does not fully understand the mechanisms in investment-linked policies.

“Besides that, insurance companies should enhance the integrity of insurance agents.

“Consumers need agents who will be able to inform policyholders about all the information contained in the policy, ” he says.

Part time insurance agents are not fully committed to the industry, he points out.

“They are doing this job for commission, hence they are not well informed enough to impart precise information on insurance policies.

“Some of them will leave the job midway, leaving policyholders in a dilemma, ” Dr Marimuthu says.