Recently insurance companies have been exploiting clients in shrewd and dubious ways by increasing premiums on health or medical insurances in unfair manners.

My premium for medical insurance was increased in 2008 by 30% by a major insurance company due to my ‘age band change' as stipulated in the insurance policy.

I accepted this as fair due to the age bands prescribed in my policy. But based on this age band change in 2008, there should not be any further premium increases for me until the next age band change in 2013.

However via a letter from the said insurance company, they now intend to increase my premium again in 2009 by another 25%..

The reasons quoted by them are that there is a split in the age bands into five groups instead of the original four groups and also due to an increase in medical costs generally.

In my opinion, changing the age bands mid-stream is legally and morally wrong and is not binding. Such practices are very unfair and unacceptable.

Bank Negara Malaysia (BNM) as the responsible regulatory body should seriously look into such manipulations by insurance companies. Such companies do not seem to have any principles and will use any ways or means to increase premiums at their whim and fancy by misleading and hoodwinking BNM.

Looks like by signing up for a policy, the insurance company has got a blank cheque to increase premiums as they wish with dubious reasons.

It is time BNM viewed this seriously and stop such indiscriminate, arrogant and unfair practices by such international insurance companies in this country.