PKR MPs urge BNM to act on insurers defying directive over premium hikes

A group of PKR MPs has called for Bank Negara Malaysia (BNM) to intervene and investigate insurers and takaful operators (ITOs) who continue to raise premiums despite the central bank’s directive to review them first.

At a press conference today, Bayan Baru MP Sim Tze Tzin questioned whether BNM would take action against ITOs ignoring its instructions.

“We, as representatives of policyholders, now pose these questions. Will ITOs comply with BNM’s directive, or will they only implement repricing in the future?

“Does the Life Insurance Association of Malaysia (Liam) truly represent all insurance companies?” he said.

Sim’s comments come after Liam chief executive officer Mark O’Dell stated yesterday that insurers will go ahead with next year’s medical insurance premium hikes. However, it will instead implement gradual repricing adjustments in the future.

Previously, it was reported that premiums could increase by 40 to 70 percent, which prompted Sim to encourage the public to email their feedback to aduan.pkr.hospital.insurans@gmail.com.

The PKR lawmaker today revealed that he had received over 147 complaints through email, phone calls, and WhatsApp in just two weeks.

Emphasising that policyholders deserve transparent and comprehensive answers, Sim (above, centre) urged each ITO to clarify their positions on whether they will all be doing as Liam announced.

He also called on BNM, as the regulator of all ITOs under the Financial Services Act, to explain its enforcement measures.

“Will the panned premium hike proceed as the ITOs planned?” he asked.

Public healthcare could be affected

Tebrau MP Jimmy Puah, Sungai Petani MP Taufiq Johari, Segamat MP R Yuneswaran, and Miri MP Chiew Choon Mun also supported the statement.

Echoing similar concern, Puah said if the matter is not solved, it would trigger an unprecedented health crisis in the country.

“If the group that can afford private healthcare is forced to turn to public hospitals due to rising premiums and hospital charges, it will put immense strain on public healthcare facilities.

“Public hospitals are already overloaded. Imagine if this influx happens – we will face severe overcrowding issues,” he warned.

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