Speaking at a press conference in Parliament today, he said BNM should not wash its hands of its responsibility by calling the increased premiums a business decision.
“BNM has the authority to regulate all decisions made by insurance companies.
“If the domestic trade and cost of living ministry can investigate or implement price controls for excessive profiteering when the price of eggs goes up by 10 sen, why can’t BNM investigate insurance premium hikes of tens of hundreds (of ringgit)?” he asked.
It was reported yesterday that medical insurance premiums are expected to rise by 40-70% next year, based on notices sent by insurance providers to policyholders, citing the rising cost of healthcare at private hospitals.
Sim was also among a group of PKR MPs who last week claimed that the rising cost of private healthcare was forcing the middle class to seek treatment at government hospitals and clinics, exacerbating the problem of overcrowding.
At the press conference today, Sim castigated Association of Private Hospitals Malaysia president Dr Kuljit Singh for defending the increase in medical insurance premiums.
“He is trying to straighten a wet thread. It is well known that the increase in medical insurance premiums is closely tied, directly and indirectly, to the sharp and uncontrolled increase in private hospital charges.
“High private hospital charges have become a huge burden on insurance companies. And now they are passing the cost to policyholders,” he said.
Sim said some policyholders had stopped paying their premiums due to the high cost, and had started going to government hospitals.
“This indirectly increases the burden on government hospitals. The B40, who have relied on government hospitals all this while, are now the victims because they have to wait longer (to be treated),” he said.
Sim showed a letter sent by an insurance company to a policyholder, which he said contained a list of premium increases according to age.
“If I am between 46 and 50 years old, where previously I had to pay RM1,133 a year, I now have to pay RM1,699 a year. That is about a 50% increase. This is evidence. I hope that BNM will investigate this,” he said.