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Guide to Hospitalisation and Surgical Insurance in Malaysia

Types of H&S insurance

How to Select Hospitalization & Surgical Insurance in Malaysia

(also known as medical & health Insurance or medical card insurance in Malaysia)

Policy Renewal Conditions        

One of  the MOST IMPORTANT point that you need to pay attention to when purchasing H&S insurance is the renewal conditions as some policies are guaranteed renewable, some are conditional guaranteed renewable and the rest are yearly renewable.

(1) Guaranteed renewable (Non-cancellable)

Recently, we noticed that many insurance companies change the words ‘guaranteed renewable’ to ‘this policy is renewable at the option of policyholder until the occurrence of any of the following:

(a) non-payment of premium or premium not made on time,

(b) fraud or misrepresentation of material fact during this application,

(c) termination of coverage for all policies in a certain market and the Company withdraws  this policy completely from the market accordance with the Portfolio Withdrawal Condition’.

Advantages: 

(i) Have peace of mind when the policy is due for renewal

Your H&S insurance is guaranteed to be renewed when it is due for renewal. Of course you can’t renew it anymore if your life time limit is used up.

Beware! Make sure you pay the premium before the due date, if not, the renewal might be rejected by the insurance company.  If you change the credit card that you use to pay premium, notify your agent earlier and submit a fresh credit card payment form before the policy is due.

Some plans have grace periods e.g. 14 days or 30 days after the due date for you to pay the premium and your policy during the grace periods is still valid.

Disadvantages:  

(i) Premium rate is higher

The insurance companies are taking higher risk after each renewal so the premium is higher.

(ii) Life Time Limit will reduce

The life time limit will reduce after each claim.

 Notes:

Bank Negara Malaysia (Central Bank of Malaysia) encourages H&S insurance

companies to practice ‘take-over policy’. Take-over policy means you can switch

your current H&S insurance to another insurance company as a renewal case and

not a new case.

Like motor insurance renewal whereby you can transfer the Non-Claim Discount

(NCD) from one company to another company. In other words, you don’t have to

go through the 30 days waiting period for sickness claim and 120 days for

specified illnesses claim all over again.

However, up to today only a few insurance companies practice ‘take over policy’. The rest are

still very conservative.

For inquiries on various H&S insurance plans available in Malaysia, kindly email your name, handphone number and email address to us at MalaysiaInsuranceGuide@yahoo.com

You may also want to know about:

 'Guaranteed Renewable with Conditions'-Click here

 'Yearly renewable'-Click here