In a statement, Lim said Bank Negara Malaysia (BNM) had disclosed that life insurance companies had to increase medical insurance premiums next year to counteract the 15% gross increase in medical costs in Malaysia.

“So why should medical insurance premiums be hiked up by 40-70% next year? This is much higher than the 15% increase in gross medical costs.”

Lim said the central bank should demonstrate “social empathy, public responsibility and ethical compassion” by protecting Malaysians instead of the “profits and wealth of 16 life insurance and takaful companies”.

He said BNM should reject such an excessive hike.

Separately, Lim questioned the gross increase in medical costs of 15% in Malaysia, stating it was higher than the corresponding 10% global medical cost increase and 11.1% increase for the Asia-Pacific region.

“What are the underlying reasons that have allowed gross medical costs to run out of control and increase at a higher rate as compared to our regional neighbours and globally?”

Lim said policyholders and the public should not be made to pay for BNM’s failure to contain medical costs, especially since there has been no significant increase in salaries.

“There is no clear and defining moral justification for life insurance companies to hike up medical insurance premiums by 40-70% next year.”

Yesterday, Bayan Baru MP Sim Tze Tzin said BNM had pledged to find an interim solution to address the expected increase in health insurance premiums.

Prime Minister Anwar Ibrahim had also assured that BNM and the health ministry would work together to prevent steep hikes in medical insurance premiums, which has since led to some cancelling their policies.

It was previously reported that the central bank had called on insurers and takaful operators to review repricing strategies for more “reasonable implementation”.