Bank Negara issues new health insurance rules

Business Times: GUIDELINES on medical and health insurance (MHI) have been revised and the new rules will take effect from January 1 next year.
The revised guidelines are to promote a more equitable and consistent treatment of consumers covered under MHI policies.
Bank Negara Malaysia’s director of insurance regulation department Donald Joshua Jaganathan said insurers have until the end of the year to revise their existing practices to meet requirements of the revised guidelines.
“New MHI products introduced before January 1 2006 must also observe the requirements of the guidelines,” he told a media briefing in Kuala Lumpur yesterday.
He said the revised guidelines stipulate the minimum standards that must be observed by insurers in relation to the terms of issuance of MHI policies, the setting of premiums, limitations that can be imposed on core benefits provided under the policies, and disclosures to policyholders.
Among others, the new guidelines would reduce waiting periods before a policyholder is entitled to claim for benefits provided under the policy, he said.
The revised guidelines would also introduce a minimum 15-day “free-look” period for consumers to assess the suitability of new policies purchased.
Other benefits to consumers from the revised guidelines include limitations on policyholders’ contribution to medical claims under the co-payment terms for MHI policies, and complete disclosures on key policy features at the point of sale.
Asked on insurers response towards the revised guidelines, Jaganathan said he does not expect to see any “surprises”.
“A key point in the whole process is about balancing the mechanism between protection of consumer interests and looking at the welfare of the insurers,” he said.
He said the revised guidelines were due the culmination of the consultation between Bank Negara and the insurers for the past two years.