The main reason for the increase is due to the medical inflation. The cost of medical care and services continues to increase at a pace faster than the general inflation. This increase has affected the claim experience of our medical insurance products.
Insurance is based on the concept of risk pooling, where provisions for claims are pooled together for all policies. The claims are paid out from the pool. As the amount of claims increases, it is necessary for us to increase the premium/insurance charge to ensure that you receive at least the same level of benefits as you expected when you first took out the policy.
Insurance is based on concept of risk pooling. All claims are pooled and shared by all policyholders within the same portfolio. The individual policyholder is not penalized with a higher premium/ insurance charge for having made a medical claim.
The overall cost of healthcare in Malaysia increases every year. In order to keep pace with this increase while continuing to provide you with adequate cover, we carefully review the claim experience of each product annually to determine if the current premium/insurance charge remains sustainable. Premium/ insurance charge adjustments are only conducted when the actual claim experience has exceeded what we have projected.
| MedGLOBAL and MedGLOBAL III (Conventional) | 2010 |
| MedGLOBAL and MedGLOBAL III (investment-linked) | 2011 |
| MedGLOBAL II | Never |
We have a rigorous process to ensure that premium/insurance charge adjustment is done justly. Premium/ Insurance charge of medical plans are not guaranteed and thus individual companies issuing such policies will make their own reviews based on the prevailing medical costs and past claim experience. Insurance companies are known to make premium/ insurance charge reviews regularly and the adjustments are based on the individual company’s claim experience.
The change will take effect on your next policy/rider anniversary. A notice of at least 90 days will be given to policyholders before the increase is in effect.
Yes. We are pleased to inform you that we have increased the Aggregate Term Limit of your medical plan by 25% to ensure that you have sufficient coverage as medical costs continue to increase.
No, you are not required to do so. We will bill the card issuer with the new premium.
There are two ways to change your existing standing instruction.
- If you have previously arranged the facility directly with your bank, you will have to inform the bank to pay the new premiums.
- If you have arranged the facility through HLA, you can submit the Direct Debit Authorisation Form (original copy) to us to increase the limit and we will handle the rest for you.
Your Investment-linked policy provides insurance protection through the deduction of insurance charges of the basic sum assured and any riders attached, as well as the policy fee from the available invested funds under the policy. As the value of these units of invested funds change with the market conditions and insurance charges do increase with age or may be revised, it is prudent to have a sufficient fund value that can support such monthly deductions at all times.
You are advised to review if your regular premiums or the fund value are sufficient to sustain your policy. HLA will send out pre-lapse notices when the fund value of the policy is expected to be insufficient to pay for the insurance charges.
It is possible to manage the cost by switching to a lower plan or a plan with a higher deductible. Your medical insurance needs evolve as you progress in life. It is advisable for you to review your cover periodically to ensure that it continues to meet your needs. However, there is a trade-off between getting less expensive cover and getting the medical cover that you need. Please contact your agent for advice in order to help you get the right cover that suits your lifestyle and needs.
Your medical insurance needs will change over time as you progress in life and have different financial obligations. It is crucial to periodically review your medical insurance based on your current lifestyle and budget needs.
We currently offer MedGLOBAL II, HLA MedGLOBAL IV Plus, HLA Major Medi and HLA MediShield plans. Please speak with your agent to find out more. Please note that any change of medical plan or an upgrade will be subject to full underwriting and a waiting period shall apply on the new plan.
