Medical & Health Insurance Premiums Up 15 Pct In Q1 2006

KUALA LUMPUR, July 27 (Bernama) -- Gross premiums registered by the medical and health insurance sector reached RM114 million in the first quarter of this year, up by 15 percent over the same period last year.
The General Insurance Association of Malaysia (Persatuan Insurans Am Malaysia or PIAM) said the medical and health insurance sector is expected to expand at a significant rate, underpinned by consumers' increasing demand for private health insurance to finance their healthcare expenditure.
PIAM said according to government statistics, the public healthcare cost increased from RM1 billion in 1983 to RM6.3 billion in 2003 and is expected to exceed RM10 billion by 2010.
"With increasing concern over rising healthcare costs, consumers should not overlook the importance and utility of health insurance," PIAM chairman Hashim Harun said.
"Many consumers think that they would not need health insurance, but they do. The possibility of unexpected medical emergencies at some point in our lives are a reality that we cannot and should not ignore," he said.
With escalating healthcare cost and increasing incidence of lifestyle-related diseases, PIAM is embarking on a three-month Healthy Living Campaign to mark this year's Insurance Day.
The campaign, officiated by Health Ministry's Parliamentary Secretary Datuk Lee Kah Choon Thursday, is aimed at encouraging the practice of good health habits among consumers to ensure physical well-being.
Apart from promoting healthier lifestyles, the campaign also seeks to raise public awareness of the benefits of health insurance.
Lee said the government has budgeted about RM30 million to promote the campaign.