Senior citizens are feeling the huge impact of rising medical insurance premiums, according to a consumer advocates’ group.
The Federation of Malaysian Consumers Associations (FOMCA) is urging Bank Negara Malaysia, the country’s central bank, to intervene, according to a report by Free Malaysia Today.
Paul Selvaraj, FOMCA’s secretary-general, said that senior citizens often rely on their savings to meet daily expenses. These savings are usually from the Employees Provident Fund (EPF).
However, more than 50% of EPF contributors over age 54 have savings below MYR50,000 (SG$16,000), while two-thirds (67%) do not have a minimum of MYR240,000.
Rising costs of living, coupled with increasing insurance premiums, are placing financial strain on senior citizens, he argued.
“The sharp and unjustified increases by the insurance companies put pressure on senior citizens to lapse in paying their premiums and thus they lose their coverage,” Selvaraj said, as reported by Free Malaysia Today. He cited a survey conducted by FOMCA, which found that 42% of the respondents reported premium increases between 20% and 230%.
The lack of regulation, he continued, will allow insurers to increase premiums at will and to the detriment of the elderly.
“This is a cruel approach towards senior citizens,” Selvaraj said. “But without protection by the regulators, it appears that consumers, especially the senior citizens, are at the mercy of the insurance companies if they want to maintain their coverage.”
