More Malaysians cancelling health insurance as premiums rise
The trend has been growing since the end of last year.
SHAH ALAM - An increasing number of Malaysians are cancelling their health insurance policies, citing financial pressure from rising premiums and stagnant salaries.
A takaful agency manager, who only wanted to be known as Sharipudin, said the trend has been growing since the end of last year.
“Many have terminated their policies because they can no longer afford to pay the higher insurance premiums.
“They said that salaries have not gone up, but insurance prices continue to rise. That is one of the main reasons they gave,” he said in a statement.
Moreover, Sharipudin also added that this situation also affects companies, including takaful agents and consultants, as their income depends on the existing pool of customers.
He said that most of those cancelling were long-term contributors, which he described as unfortunate but unavoidable given the burden of costs.
Takaful consultant, who wanted to be known as Firdaus, echoed the concern, saying that nearly half of his clients had already cancelled their policies, even those who had only recently started contributing.
“Most of them admit they are aware of the importance of takaful plans, especially to cover the high cost of hospital treatment, but financial constraints coupled with rising insurance premiums leave them with no other option,” he said.
However, Alpha Agency manager Mohammad Amirul Aizat Mohamad Adnan said not all cancellations were due to premium hikes.
He said that some were linked to financial struggles within the companies where policyholders were employed.
“Indeed, there are some who have terminated their policies, but overall, the number of businesses or policyholders using our services this year has increased compared to last year,” he said.
Download Sinar Daily application.Click Here!
