Medical Insurance: Consult a doc and read the fine print before signing up for a health policy

Your report, Medical Insurance: Consult a doc and read the fine print before signing up for a health policy is certainly timely, and has exposed a long standing flaw that is prevalent in health policies that have been offered by various reputable firms in Malaysia.

Insurance companies have long forgotten that one of the objectives that such policies have always claimed to do, is to provide cover for the insured when the need is the greatest, that is, when the insured falls ill or dies. Insurance companies are supposedly able to do that, because they have the 'economy of scale', prudent investment of the premiums received, and the statistical norm of the huge number of the healthy and young insureds covering the expenses of the 'sick'.

However, it is well known that insurance companies now operate with the 'bottom line' firmly in sight, and hence such shenanigans and resort to the 'fine print', when claims are received from policy holders who have been struck down by serious illness. I am glad Star has highlighted such unethical practices, and also glad that the Insurance Association is taking steps to rectify such weaknesses.

A more insidious issue that has not been highlighted by The Star, and which needs more thought by the Govt and authorities, is the way Insurance companies abandon their clients even after an exemplary period of not falling sick and paying punctually all premiums due. All medical policies have an age limit, generally those who are 70 and above are not allowed to renew their policies anymore. And "adding salt to the wound", such policies have hugely escalating premiums every five years, some premiums double up, even if there had been no claims made by the holders. The most unfortunate and heartless thing about such increases is that they are imposed as the holders get older, and are usually retired, and thus unable to afford such steep increases in costs, especially when the policies lapse automatically after the age of 70 or thereabouts. A case in point is that of my wife; her health policy premium increased from an annual value of RM1800 to RM5800 when she passed the age of 65! How can a pensioner afford that?

If a person decides to take up a health policy in his younger days so that he can avail himself to cheaper premiums, due to the advantage of youth and 'global volume', isn't it really cruel that insurance companies keep pricing it out of his reach as he grows older, and then when he may really require assistance, to "pull it from under his feet"??

There must be a more compassionate way to do business, and not to desert our aged and helpless!!!