KUALA LUMPUR, Dec 19 — PKR lawmakers have urged Bank Negara Malaysia (BNM) to impose an interim 10 per cent cap on medical insurance premium increases in 2025, citing the need for fairer increases in line with Malaysia’s medical inflation rate.
Bayan Baru MP Sim Tze Tzin, who is leading a campaign along with a few other Senators and Members of Parliament from PKR against the rise in health insurance premiums and private hospital charges, said the proposed cap was reasonable.
“Medical inflation is at 15 per cent, but not everyone claims insurance. A 10 per cent cap is fair for both insurance companies and policyholders. Not 170 per cent, not 186 per cent,” Sim told a press conference in Parliament today.
The government backbencher said his team had received 256 complaints since launching their campaign, with some reporting premium hikes as high as 186 per cent within a year – far exceeding widely cited increases of 30 to 70 per cent.
“The claim that premium increases are capped at 70 per cent is not true. We’ve seen cases where premiums have risen as high as 186 per cent in a single year,” Sim said.
In one case, a policyholder’s premium increased from RM651 to RM1,862 within a year – a 186 per cent hike. Sim argued this was unjustifiable, given Malaysia’s 15 per cent annual medical inflation rate, as cited by BNM. The global medical inflation rate is 10 per cent, while in the Asia Pacific region, it is 11 per cent.
Another case involved a 74-year-old retiree whose premium jumped 171 per cent from 2024 to 2025. “He told us, ‘I can’t afford to pay such high premiums anymore.’ This is a senior citizen with no income, and the increase is simply unsustainable,” said Sim.
A third case highlighted a 60-year-old woman who saw her annual premium rise from RM1,240 in 2007 to RM16,332 in 2025 – a staggering 1,215 per cent increase over nearly two decades. Between 2024 and 2025 alone, her premium spiked 170 per cent.
“Bank Negara may not have a complete picture of these extreme cases, as they oversee numerous policies and packages,” Sim said, adding that the central bank requires time to review the broader issue.
“We don’t blame Bank Negara, but as elected representatives, we’re bringing these complaints to their attention. That’s why we, as PKR lawmakers, are calling for BNM to cap premium increases at no more than 10 per cent as an interim measure,” Sim said.
Senator Manolan Mohamad voiced his concern over the sharp premium hikes. “Premiums shouldn’t increase as much as 170 per cent, let alone over 1,000 per cent, because not all policyholders claim their insurance every year. I urge BNM to review these excessive increases and ensure they don’t go this high.”
Senator Abun Sui Anyit also criticised the current practices of some insurance companies. “When insurance is sold to us, they promise the stars and the moon. But when it comes to making a claim, it’s always difficult. This is unfair to the rakyat, especially when claims approval rates are so low.”
Abun called for fairness in premium adjustments. “We don’t want these exorbitant increases to continue. Insurance companies need to reassess and adjust for those who have already purchased these policies, often out of necessity.”
Senators Amir Md Ghazali and Dr Ahmad Azam Hamzah were also present at the press conference.
For a long-term solution, Sim proposed that BNM and the Ministry of Health (MOH) establish a high-level Cabinet task force to comprehensively review the medical and health insurance/takaful (MHIT) industry, focusing on policies, regulations, oversight, and enforcement.
