FOMCA, based on an online survey undertaken as well as complaints received through our National Consumer Complaints Centre (NCCC) have reported that many consumers have been negatively impacted by the increase of their medical premiums, with 42% of the respondents indicating increase of 20% to 230% on their previous premiums.
The group that has been more severely affected by this premium increase have certainly been the senior citizens. Firstly, they are relying in their savings to meet their daily expenses. Very often, their primary savings is from their Employee Provident Fund.
Yet, the data shows that over 50% of EPF contributors above 54 have savings of below RM 50,000. Further, 67% of contributors do not have a minimum of RM 240,000. The minimum is based on the estimate of RM 1,000 expenses monthly for 20 years. (The poverty line income in Malaysia is however RM 2,208 per month.)
Most senior citizens, having no income, are dependent on their savings. Currently, the costs of living especially the cost of food and other essentials have been increasing substantially, exerting tremendous pressure on the quality of life of all but especially on senior citizens.
Further, the insurance companies have often without warning increased the medical premiums by up to over 100% due to the “so called” increase in “risk factors”. At the time of purchase of the policy, the agent had failed to inform of the possibility of such steep increases. Which means the consumer only becomes aware of theses sharp increases at the late age in his life; he had in effect not taken into account these substantial increases at a time when he has no income and is very dependent on his very limited savings.
This sharp and unjustified increases by the insurance companies appears to purposely put pressure on senior citizens to lapse and thus lose their coverage. With no regulator to protect the consumers well-being the insurance companies can increase their premiums when they like and by how much they like. And if consumers, in their old age cannot afford to pay, too bad; they can just forgo their coverage.
This is a cruel approach towards senior citizens, But without protection by the regulator, it appear that consumers, but especially the senior citizens, are at the mercy of the insurance companies if they want to maintain their coverage.
FOMCA requests that the Central Bank regulates the industry for greater justice and fairness for the rakyat, but more especially for the vulnerable groups who may be unable to protect themselves.
