They said the premium cap needs to be set because not all policyholders will claim their insurance payout, and the hike needs to be in line with regional health inflation.

“We are calling for a reasonable increase because we want to ensure that insurance remains affordable for the M40 group. Insurance should not be an exclusive service only for the ‘mahakaya’ (super-rich) group,” they said in a joint statement.

“We urge BNM to play its role as a regulator to correct the ‘disorder’ that has been happening in the medical and health insurance and takaful sector.”

The statement was jointly issued by MPs Sim Tze Tzin (Bayan Baru), Jimmy Pua (Tebrau), R Yuneswaran (Segamat) and Chew Choon Mun (Miri) as well as Senator Amir Ghazali.

They said they received reports of premium hikes reaching as high as 78%, which was unacceptable because of their huge departure from the 15% health inflation recorded in Malaysia.

They warned that those in the M40 group who cannot afford the increased premium would flood public hospitals and this would burden the government healthcare system.

It was earlier reported that medical insurance premiums were expected to rise by between 40% and 70% next year, based on notices sent by insurance providers to policyholders.

Insurers attributed the hike to rising healthcare costs at private hospitals.

Despite BNM ordering insurers and takaful operators to review their current repricing strategies, policyholders have taken to social media to share images of premium hike notifications they received.

BNM has pledged to find an interim solution, while Prime Minister Anwar Ibrahim has given an assurance the central bank and the health ministry would work together to prevent steep hikes in medical insurance premiums.