Great Eastern Life Malaysia's Interim Measures for Medical Insurance Repricing FAQ
Frequently Asked Questions (FAQ)
1. How do I know whether my medical plan is subject to the interim measures?
Only medical plans that are subject to rates revision effective from July 2024 and January 2025 as shown below will be impacted.
| Traditional Standalone Medical Plan | Investment-Linked Medical Plan |
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2. I’m 60 years old. How could I benefit from the recent announcement on interim measures by Bank Negara Malaysia?
For policyholders aged 60 years and above who are covered under the Minimum Option Plan of an impacted medical product will enjoy a temporary pause in premium adjustments during the first year of revision during the interim period. This temporary support is offered to impacted policyholders to ease their financial commitment whilst the broader reforms are being worked on to tackle medical inflation in Malaysia such as implementing more sustainable cost containment strategies to address the financial impact of rising healthcare costs and medical claims.
3. I am aged 60 years next birthday. How do I know if I have the Minimum Option Plan?
Please see below table for the Minimum Option Plan of your respective plan:
| Plan | Minimum Option Plan |
| Health Protector | Room & Board 100 |
| Great HealthCare Plan | Room & Board 100 |
| Great MediCare | Room & Board 100 |
| Great MediCare Rider | Room & Board 100 |
| Great MediCare 2 | Room & Board 150 |
| Great MediCare Rider 2 | Room & Board 150 |
| Great Medic Xtra |
Room & Board 150 |
| IL Health Protector | Room & Board 100 |
| SmartMedic Million | Room & Board 150 |
| Smart Extender | Room & Board: Follows the minimum option plan of the primary medical riders |
| Smart Premier Health | Room & Board 180 |
4. I have surrendered/lapsed my policy upon receiving the notice of rate revision to my medical plan in July 2024. What can I do now?
If you have surrendered or if your policy has lapsed due to rates revision within the period of 1 April 2024 until 31 Dec 2024, you may request to reinstate your policy within one year from the date of surrender/lapsation and there shall be no additional underwriting requirements from you, however the waiting period of 30 days (or 120 days for Specified Illnesses) shall apply.
5. Why does the increase in my premium rates or insurance charges appear higher than the staggered quantum of revision under interim measures?
The rates for medical plans are structured in tiers based on your attained age. The increase in premium rates or insurance charges for your medical plan could also be due to the increase in rates when your age has reached the next age band.
6. I am experiencing an increase in premium and/or insurance charges due to change in age band as well as the revision of rate. How would the interim measure apply?
Please note that the premium / insurance charge increases due to change in age band is not covered by the interim measures. Such increases due to age factors are stated in the policy terms and conditions, which has been disclosed at the point of sale.
7. When will Great Eastern Life Malaysia notify me further on the revised premium that I need to pay for my medical policy?
We will be posting the notification on the revised premium amount for your medical policy in e-Connect progressively from early February 2025. You will be receiving email and SMS notification when your e-letter is available in e-Connect for your reference. Please refer to the schedule below for your medical plan and log in to e-Connect to retrieve the information. Meanwhile, please continue the premium payment at the current amount. Any excess premium paid, or insurance charge incurred will be refunded accordingly (refer to Questions 8 and 9 below).
| Plan | When will the notification start to be available in e-Connect |
For Traditional Standalone Medical Plans:
|
11 February 2025 |
For Investment-Linked Medical Plans:
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28 February 2025 |
8. The staggered quantum of revision has been effective since 1 January 2025, what will happen to my policy which has already been charged based on the original rate of revision prior to 1 January 2025?
Adjustments will be made according to the type of medical policy you own. Please refer to the details as below.
| Plan | What adjustment will be done and when will it be done |
For Traditional Standalone Medical Plans:
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We will refund the excess premium that you have paid prior to 1 March 2025 for the coverage period from 1 January 2025 until the next premium due date. The refund will be credited to your nominated bank account. Please login to e-Connect to check and ensure your direct credit bank account information is updated in our records for the refund. Otherwise, please register your direct credit bank account online through our customer portal, e-Connect. The timing of the refund will depend on the policy anniversary as well as on the policy’s premium mode e.g. monthly, quarterly, half-yearly or yearly. You will receive payment notification when the refund is credited into your nominated bank account. Example 1: Example 2: Example 3: (if your age next birthday is 60 and above with Minimum Option Plan) |
For Investment-Linked Medical Plans:
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We will refund the excess insurance charges incurred for the coverage period from 1 January 2025 until the next policy anniversary by adjusting the investment-linked units into your policy’s Total Investment Value. The adjustments will be done in batches as per the examples shown below and the unit adjustments will be reflected in your Annual Statement for Investment Linked Policy in the following year. Example 1: Example 2: Example 3: (if your age next birthday is 60 and above with Minimum Option Plan) Please note that the refund will only be made on the insurance charges and not on the premium amount.
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9. My policy anniversary is after 1 January 2025, how would the interim measures impact me? Will there be any refund involved for my policy?
| Plan | What will happen to the premium or insurance charges |
For Traditional Standalone Medical Plans:
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The premium rates based on the staggered quantum of revision will only be implemented in our system from 1 February 2025. If your policy anniversary falls within 1 January 2025 to 31 January 2025, we will refund the excess premium that you have paid for the coverage period from 1 January 2025 until the next premium due date, as per the principle illustrated in Question 2 above. |
For Investment-Linked Medical Plans:
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The premiums and insurance charges have been revised as per the staggered quantum of revision effective from 1 January 2025, hence the insurance charges of your policy would have been / will be reflected correctly from your policy anniversary onwards. |
10. Why does the Company need such a long time to refund the premium / insurance charges?
The charging of premium / insurance charges for insurance policies is a complex process, and the reversal of such charging would require extensive efforts and changes to our system to accommodate to the new requirements within a short timeline. Please be assured that your interest is our priority, and we will strive to minimise any inconvenience that you may experience.
11. The premium of my medical plan has been revised to a level which I can no longer afford even with the staggered quantum of revision under interim measures. Is there an alternative for me to continue my medical coverage at a lower premium?
We encourage you to speak to your servicing agent to explore other possible options with lower premiums that still meet your medical coverage needs. The available options include but not limited to the following (where applicable):
a) Downgrade your medical plan/rider to a lower coverage plan type and your downgraded plan will have lower insurance charges, no medical underwriting is required;
b) Convert your medical rider to other investment-linked medical rider that is available on the shelf, subject to the eligible entry age at next birthday and underwriting;
c) Reduce sum assured for the basic plan and Basic Investment Premium (BIP);
d) Reduce sum assured and term coverage for other rider(s);
e) Cancel other rider(s) / supplementary benefit(s);
f) Change the policy’s payment frequency to “monthly” mode; or
g) Cancel the current medical plan and downgrade to another medical plan with deductible and lower coverage, no medical underwriting is required.
12. Will this interim measure (staggered quantum revision) impact my existing policy benefits and coverage?
The interim measure will not have any impact on your existing policy benefits and coverage so long you continue to pay premium on time to ensure the sustainability of your policy.
13. How sustainable are these interim measures and how will they affect my premium/insurance charges in the long run?
While spreading the increased premiums/insurance charges over a minimum period of three (3) years provides immediate relief to policyholders, the reality is that the premium/insurance charges will require material adjustments in the near future unless systematic changes are implemented across the healthcare eco-system.
As the current premium/insurance charges are inadequate, insurance and takaful providers may have to step up cost containment initiatives, as part of the industry’s commitment to provide accessible, affordable, and effective healthcare.
14. If my policy lapses and is reinstated during the interim period, how does the staggered quantum continue to apply?
The staggered quantum will continue as if there had been no lapsation during the interim period. E.g. policy lapses in Year 2 and is reinstated in Year 3, the staggered quantum in Year 3 will be applied. You will be required to pay the unpaid premiums with interest (if any) which has accumulated up to the date of reinstatement.
15. What will happen if I have paid the staggered quantum of premium as advised for 2 years and thereafter decide to downgrade my medical plan, how would the staggered premium be calculated?
You will pay the prevailing staggered premium based on the downgraded plan. E.g. you downgrade from Plan A to Plan B in Year 2, the staggered quantum for Plan B in Year 2 will be applied.
16. My medical policy is on premium waiver status, how would this interim measure be applied on my policy?
The insurance charges of your policy will be staggered accordingly, the top-up option that you have authorised will continue to apply. You may request to make adjustments by contacting your servicing agent or the Company.
17. I have received both ‘Annual Sustainability Notice for Investment-Linked Policy’ and this notification on interim measures advising on a different suggested premium increment. Which letter I should refer to for the premium increment?
The purposes of both communications are different:
a) ‘Annual Sustainability Notice for Investment Linked Policy’ is to inform you on your policy status and its sustainability for all benefits attached to the policy up to its full contractual term. If the policy is not sustainable, a suggested premium increment will be provided in the letter. The suggested premium increment stated in this letter is optional; you have a choice to vary the increment amount based on your preference.
b) This notification on interim measures is to inform you about the staggered quantum of premium rates or insurance charges solely on the medical plan/rider affected by the medical repricing. The suggested premium increment stated in this letter is optional; you have a choice to vary the increment amount or maintain the previous premium amount.
Nevertheless, you are encouraged to consider increasing the premium as recommended in the ‘Annual Sustainability Notice for Investment Linked Policy’ and/or the suggested increment in the interim measures notification to ensure better sustainability for your policy.
18. I am a Smart Premier Health customer and entitled to No Claim Discount (NCD). Would the corresponding discount be reflected in this notification on interim measures?
No. The insurance charges shown in this notification is prior to any discount as NCD may vary depending on your claim status.
19. Is there any specific hotline I can call for more information?
You may contact our dedicated careline for Medical Repricing queries at +603-48133928 from Monday to Friday, 8.30am to 5.15pm (except Public Holiday). Alternatively, you can send an email to wecare-my@greateasternlife.com.
References:
- Link to BNM’s press statement: Interim measures to assist policyholders and to promote continued access to suitable medical and health insurance/takaful products - Bank Negara Malaysia
- Link to BNM’s information on the interim measures: Interim Measures to Promote Continued Access to MHIT Products - Bank Negara Malaysia
- Link to LIAM's press statement: Insurance and Takaful Industry Introduces Interim Measures for Policyholders/Takaful Participants Impacted by Premium/Contribution Repricing
- Link to LIAM FAQs: FAQ-Interim-Relief-Measures-20Dec2024-FinalVersion.pdf