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.

2. 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:

3. 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 shall apply.

4. 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.

5. The staggered quantum of revision will be effective from 1 January 2025, what will happen to my policy which has already started charging me based on the original revision prior to 1 January 2025?

There will be exceptional handling for the affected policies with policy anniversary within the period of 1 July 2024 to 31 December 2024. As it takes time for us to make changes in our system, you may see that the original quantum of increase continues to apply on your policy for the existing policy year. We appreciate your understanding and patience in allowing us some time to make adjustments to your policy accordingly.

6. I have already been paying the premium increment as suggested to me before 1 January 2025, how would the interim measures impact me?

7. 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 rider to a lower coverage plan type and your downgraded plan will have lower insurance charges;

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.

8. 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.

9. Can I choose any other staggered quantum and pay a different premium amount?

We would encourage you to adhere to the suggested premium amount to ensure better sustainability of your policy.

10. 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.

11. 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.

12. Why did I receive a premium notice that does not reflect the staggered premium rate?

The premium notice you have received was issued before the interim measures were announced. Please continue to pay the premium amount shown in the notice to ensure the continuation of coverage. We will issue a letter to you to advise you on the revised premium amount as well as to make adjustments to your policy accordingly after 15 January 2025.

13. 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.
 

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

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