Lawyer Ng Kian Nam said his client, Wong Kee Chong, is demanding that the insurer stop imposing premium hikes beyond the ranges stated in the policy illustration; that BNM issue a permanent circular to enforce this; and that both parties explain why insured patients are charged more than cash-paying patients.

In the legal notice, Ng said Wong’s premiums rose sharply over the past three years, including a jump from RM3,590 in November 2023 to RM7,956 in November 2024, exceeding the RM5,295 stated in the policy illustration.

He said the insurer sent a notification on Oct 25, 2024, citing rising claims, higher average costs, and medical inflation of 4.9% as justification.

“This increment represented a 121.6% increase from the amount of premium paid in November 2023,” he said.

Ng also said that despite BNM’s interim 10% cap on premium increases until 2026, the insurer reportedly raised Wong’s premiums by more than 50% in the third year policy and applied a further 14% increase in the fourth to RM6,212.41.

He said his client is dissatisfied with the “invalid, intransparent, excessive, unfair and unreasonable” premium hikes, accusing the insurer of acting unilaterally without consent and in violation of the policy illustration.

At a press conference, Wong said he was frustrated with the lack of clarity in premium adjustments.

“It feels like the insurance company, as a giant, always bullies the laymen like us.

“They can impose whatever increment rate they like without any control or limit,” he said.

The Public Accounts Committee held a hearing in February last year on rising health insurance premiums and private hospital charges.

Wong noted that the interim cap is set to expire this year and raised concerns, as there has been no follow-up since the hearing.

FMT is withholding the identity of the insurer pending comment.