The interim measures on recent medical repricing were introduced to ease financial burden to policyholders and preserve their medical coverage. The following are the interim measures announced by BNM:

1. For policyholders affected by the premium adjustments, the changes in premium/insurance charge will be spread over a minimum of three years. With this measure, at least 80% of policyholders are expected to experience yearly premium adjustments due to medical claims inflation of less than 10%.
   (Note: This measure is not applicable to premium/insurance charge increase due to change in age band.)
2. Special provisions for 60-year-old and above policyholders. One year pause of premium/insurance charge adjustment due to medical claims inflation for those aged 60 and above who are covered under the minimum plan of the medical product.
3. Policyholders who have surrendered their policies or whose medical policies have lapsed due to repricing in 2024 will be eligible for reinstatement without additional underwriting requirements. This option will be available upon request from policyholders.
4. Insurers will offer appropriate alternative MHIT products at the same or lower premium/insurance charge for policyholders who do not wish to continue their existing medical plans that have been repriced within the next one-year.
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For more general information on the interim measures, you may refer to the following press statements and FAQ:

• Press Statement by Bank Negara Malaysia
• Press Statement by Life Insurance Association of Malaysia‍
• FAQ by Life Insurance Association of Malaysia

1. Healthcare costs in Malaysia have increased significantly, with medical cost inflation reaching 15% in 2024, which is higher than the global and Asia Pacific average of 10%.
2. This rise is driven by factors such as new advancements in medical technology and increasing prevalence of non-communicable diseases such as diabetes, heart disease, and cancer, which has led to greater demand for healthcare services.
3. As a result, the claims paid out by insurers and takaful operators (ITOs) have grown faster than the premiums collected, creating a financial imbalance. The medical repricing helps to ensure policyholders have continued medical coverage throughout the policy tenure, balancing affordability and the rising medical costs.

If you have any questions or concerns about your medical policy or the interim measures, please contact our Customer Service Centre hotline at 1300-88-1616 (or 1 300 13 2121 or +603 3007 2121 (oversea) effective 24 February 2025) or email us at [email protected]

These interim measures only apply to our policyholders with medical plan that are undergoing our current medical repricing, where your next policy anniversary must fall between 1 December 2024 and 30 November 2025. Please refer to the following affected medical plans:

• Medical Care
• Medical Care Plus
• Medic Essential Rider
• Medic Essential
• HOPE Medic
• HOPE Medic+
• HOPE Medic 2
• HOPE Medic 3
• Medic Assure
• OneMedic
• eMedic

*For OneMedic and Medic Essential Rider, the interim measures are not applicable for new business policies issued on or after 1 December 2024.

For Investment-linked policies
If your policy has been charged with the higher revised insurance charge, the excess insurance charge (total revised insurance charge minus staggered insurance charge) will be converted to units and deposited in your policy account value.
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For Traditional policies
If you have paid the higher revised premium, the excess premium paid (total revised premium minus staggered premium) will be utilized for future insurance premium.
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It is our priority to provide immediate relief to our policyholders and we are preparing our systems and processes to implement the above. When completed, we will notify you of the adjustments made. Hence, we recommend that you continue paying the revised premium to maintain your medical coverage. You may also contact our Customer Service Centre if you have alternative instructions.

We are preparing our systems and processes currently. When we have established our systems and processes to address these interim measures, we will revise the premium / insurance charge on your medical policy anniversaries stated in your repricing notification letter. We recommend that you continue paying the required premium until you receive our updated notification on adjustments as per the interim measures.

We will communicate with you once we have established our systems and processes. Till then, we recommend you to continue to pay the required premium until you receive our new repricing notification letter as per the interim measures. However, we wish to emphasize that the premium/insurance charge increase due to Insured moving up to a higher age band will not be applicable under these interim measures.

If you are 60 years old and above and covered under the minimum plan (including deductible options) of your current medical plan, the medical premium/insurance charge revision will be automatically deferred for a 1-year period.

Please note that this 1-year repricing deferment does not apply to:

1. Policies with medical premium/insurance charge increase due to moving up to a higher age band; or
2. Insured that has not attained age 60 prior to 1 December 2024.

After the 1-year temporary pause, your medical policy premium/insurance charge will be revised as per the interim measures.

95% of regular top-up premium will be allocated to your investment-linked policy account value to promote policy sustainability. Should you wish to reduce the regular top-up premium, you are advised to first review your policy sustainability to avoid your policy lapsing earlier than expected. You can proceed to reduce your premium by contacting your servicing agent, sales representative or our Customer Service Centre.

You may choose other plans with the following options to lower your medical coverage for lower premium/insurance charge:

1. Opt for lower plan option under your current medical plan; or
2. Convert to another on-shelf medical plan; or
3. Opt for deductible/co-insurance (if any) on your current medical plan or new on-shelf medical plan.
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Alternatively, you may alter other benefits under your policy to suit your affordability:

1. Reduce the coverage amount of the basic plan or any other optional rider(s); or
2. Cancel any other optional rider(s).
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Any changes made shall be subjected to the terms and conditions of your policy. You may consult your servicing agent, sales representative or our Customer Service Centre to choose options which meet your protection and financial needs.

You may reinstate your medical policy without underwriting, within 1 year from the date of lapse or surrender. Please take note upon reinstatement, the revised medical premium/insurance charge will still be applied as per the interim measures. Reinstated medical policies will be subject to a new waiting period.

You may reinstate your policy subject to our reinstatement practices and underwriting that may apply. Upon successful reinstatement, please take note that the revised premium/insurance charge of your medical plan will still be applied from your next policy anniversary of the medical plan after the new rate effective date.

While the current interim measures aim to spread the premium increase over a minimum three-year period to ease the adjustment process for our customers, any further premium changes after this period will depend on various factors. These factors may include changes in healthcare costs, claims trends, and utilization frequency. We are committed to keeping you informed and will provide advance notice of any future changes to premium rates. Our goal is to ensure transparency and continue providing you with reliable and comprehensive coverage.

The cost of healthcare in Malaysia has grown significantly over the years, with medical cost inflation reaching 15% in 2024 – well above the global and Asia Pacific average of 10%. This rise is driven by factors such as advancements in medical technology and the increasing prevalence of non-communicable diseases, which have led to greater demand for healthcare services.  

On 20^th December 2024, Bank Negara Malaysia announced interim measures to assist policyholders who are impacted by medical repricing on their Medical and Health Insurance/Takaful (MHIT) plans. 

These interim measures serve to provide temporary financial assistance, while the industry collaborates with regulators, healthcare providers and the government to develop sustainable long-term initiatives to address the rising medical cost in Malaysia and ensure that MHIT products continue to be accessible, affordable and sustainable for all Malaysians.  

Please refer to the following for more details on the announcement:  

• Press Release from Bank Negara Malaysia ‍
• Press Release (ENG) from Life Insurance Association of Malaysia (LIAM), the Malaysian Takaful Association (MTA) and Persatuan Insurans Am Malaysia (PIAM) ‍
• Press Release (BM) from Life Insurance Association of Malaysia (LIAM), the Malaysian Takaful Association (MTA) and Persatuan Insurans Am Malaysia (PIAM) ‍
• FAQs On Medical Insurance Premium/Contribution Repricing

At Generali Malaysia, we fully support Bank Negara Malaysia’s interim measures and the joint effort from the insurance and takaful industry in addressing this matter. We are committed towards supporting our valued customers and implementing these changes fairly, responsibly and transparently, in line with the framework provided by Bank Negara Malaysia.  

Effective 15^th January 2025, SmartCare Optimum and SmartCare Optimum Plus (SCO and SCO+) policyholders that meet the interim measure’s eligibility criteria can apply for access to the initiatives. We hope that these initiatives will help mitigate the impact of rising premiums and allow our policyholders to continue the benefits of quality medical care and protection during difficult times.
 

For SCO and SCO+ policyholders whose premium has been revised effective 1^st March 2024 to 28^th February 2025,
There will be no change to your current policy and premium rates.  Should you need further assistance for a more affordable option, please reach out to our authorised intermediary or Customer Service Centre from 15^th January 2025.  
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For SCO and SCO+ policyholders who are facing financial difficulties with the premium increase
Our priority is to ensure our policyholders continue to receive the protection that fit their needs. We offer several options that can be considered, including:

1. Opting for a higher deductible plan (where available)
2. Switching to a non-cashless (reimbursement) plan
3. Review and convert to lower premium plans and products

Please reach out to our authorised intermediary or Customer Service Centre for further advice and assistance.  
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Policy Reinstatement for SCO and SCO+ policyholders
Reinstatement options with staggered pricing will be available for SCO and SCO+ policies that were surrendered/ lapsed between 1^st March 2024 to 15^th January 2025 and the lapsation was due to the repricing exercise.

A fresh application form is required for the request to reinstate and for our validation on the reasons for lapsation. No additional medical underwriting will be required.

If accepted, your coverage will be reinstated to the original renewal date for continuous coverage.  

Kindly provide relevant documentation to our authorised intermediary or Customer Service Centre to facilitate the reinstatement process.

The interim measures are applicable to policyholders aged 60 years old and above and covered under the minimum plan of SCO (Plan 4), or SCO+ (Plan 5).  

If you meet these criteria, you are entitled to a one-year deferment (“deferment period”) of the next premium adjustment/ increment. This deferment does not apply to premium increase due to age.

As part of interim measure, after the deferment period, policyholders will be subject to premium increments. However, this will be spread over a minimum period of three years commencing from the end of the deferment period.

Please be assured that there will be no changes to the coverage under your policy and we will continue to honour all benefits detailed in your contract, despite the interim measures taking place.

Medical or health insurance is a vital safety net, protecting you from any potential financial burden during unexpected emergencies. Hence, maintaining continuous coverage is important to ensure peace of mind.

While staggering or spreading the increase premiums over a minimum period of three years can provide you with immediate relief in paying for your plan, the reality is that the premium rates will require material adjustments in the near future unless systematic changes are implemented across the healthcare eco-system.  

As the current premium rates are inadequate, insurance providers may have to step up cost containment initiatives, as part of the industry’s commitment to provide accessible, affordable, and effective healthcare. We therefore urge you to use your health/medical insurance responsibly.

Please contact your Servicing Agent or our Customer Service Centre by email at [email protected] or call us at +603 2170 8282, Monday to Friday from 8:30am to 5:30pm (excluding public holidays).