PETALING JAYA: As the year is coming to an end, insurees receive notifications of premium revisions from their insurance companies.

Sin Chew Daily has received many complaints from insurees about the sharp revision of premiums lately.

A random check with those who have purchased medical insurance indicated that the increase in premiums range between 20 per cent and 120 per cent.

A 60-year-old reader showed the notification from his insurance company that the annual premium of his policy would increase by 50 per cent from RM5,913 per year to RM8,869, effective 1 Jan 2025.

The reader’s premium used to be RM2,021 in 2017, increased to RM2,627 in 2020.

In 2021, the premium was revised upward to RM3,942, and then RM5,913 last year.

The reader said he had retired and could not afford to continue paying the expensive premium.

He planned to terminate the insurance policy, and government hospital would be his last resort for medical treatment.

Another 50-year-old netizen claimed that his premium was increased by 155 per cent in three years, from RM260 to RM664.

The netizen had since surrendered the policy.

It is learned that the sharp spike in premium was related to the Covid-19 pandemic, where the number of claims increased and many claims were post-Covid cases after the pandemic.

The ratio of claims remained high.

Insurance agents explained that the increase in insurance premium was akin to the case of all boats lifted by a rising tide.

An agent said insurance companies are targeting the middle and old age groups who need the medical insurance most but are unable to pay the high premium.

“Many of them are seniors who have just retired.

“The rise in insurance premium can be several times higher than pre-retirement days.

“The increase in insurance premium can be more than 100 per cent and many of them have no choice but to surrender their policies,” he said.

Another letter sent by an insurance company to its client attributed the high insurance premium to the sharp rise in operation cost.

The inflation in medical treatment, sharp rise in the number of claims, and the increase in compensations are among the factors which have led to a sharp increase in premium.

The insurance company even cited figures to defend the need to increase insurance premium, such as 67 insurees out of 1,000 filed for claims in 2023, and that the ratio increased to 153 in 2024.

The average compensation increased from RM9,410 to RM11,136.

A Bank Negara report stated that medical treatment charges rose by 12.6 per cent in 2023, but the insurance company said the inflation for medical treatment was 6 per cent a year from 2021 to 2023.

An insurance agent contacted by Sin Chew Daily said although the inflation rate for medical treatment averages 6 per cent a year, the increase in premium was higher than 6 per cent.

The agent also claimed that he had learned from medical staff at a private hospital that patients underwent medical screenings or imaging tests which could be unnecessary at times just to ensure the medical facilities were utilised.

“Patients concerned about their health would take advice from their doctors to undergo screenings which are expensive,” he said.

Some private hospitals are charging unreasonably high fees such as cleaning fee, operating the hospital like a five-star hotel, he said.

“Patients have been advised to go for screenings using expensive medical equipment, and hospitals charge high fees to maintain their standards, thus a spike in medical fees.

“And the Ministry of Health allows private hospitals to do so,” he said.