Service Tax Revision from 6% to 8% Effective 1 March 2024
Dear valued policyholder,
Following the national fiscal (Budget 2024) announcement, the proposed Service Tax (ST) rate will be increased from the current rate of 6% to 8% with effect from 1 March 2024, on all taxable services including the insurance sector.
At this point, Generali Insurance Malaysia Berhad (“the Company”) has outlined a tentative approach to the proposed increase in ST, pending further clarifications and implementation guidelines from the relevant Ministry and the Royal Malaysian Customs Department.
During this period, the Company reserves the right to update or modify the information as deemed necessary.
1. All Policies:
All renewal and new policies transacted on or after 1 March 2024, with an inception date on or after 1 March 2024, will be subject to ST at the rate of eight percent (8%).
2. Renewal Notices:
Please note that the ST rate will be adjusted to the existing rate once the relevant order is gazetted as law.
Additionally, the Company reserves the right to revise and collect an amount equivalent to the increase in ST payable on the applicable premium for those policies issued where the policy period commences before 1 March 2024 but expires after 1 March 2024 on a proportional basis for the period of cover from 1 March 2024 onwards, where the implementation of the 8% ST rate will be applicable.
Should you have any further enquiries, please do not hesitate to contact our authorised agents, business partners or Generali Customer Service Officer at +603 2170 8282 (Monday to Friday 8:30am to 5:30pm excluding public holidays), or email us at [email protected].
For policyholders of Generali Life Insurance Malaysia Berhad
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For policyholders of Generali Insurance Malaysia Berhad
Policyholders Aged 60 and Above
For policyholders aged 60 and above, premium adjustments will be paused for one year. After this period, any necessary adjustments will be made gradually. Our Customer Service team is available to assist with any enquiries or clarifications.
Reinstatement of Lapsed or Cancelled Policies
We are offering an opportunity for policyholders who lapsed or cancelled their policies due to premium increases to reinstate their coverage. Policyholders will need to provide relevant documentation to facilitate the reinstatement process.
SmartCare Optimum and SmartCare Optimum Plus Products
We have reviewed our policyholders' coverage level and premium rates and issued renewal notices for our SmartCare Optimum and SmartCare Optimum Plus products up to February 2025, reflecting the new repricing structure. This is important for us to ensure long term viability of proving quality medical coverage to customers amidst the escalating medical and healthcare costs.
Learn more about medical and health repricing
Medical Cost Inflation
Without a doubt, inflation is our biggest financial enemy as it increases the price level for goods and services. With this, it also increase the medical cost and may impact your medical insurance charges/premiums.
According to AON Global Medical Report 2023, annual medical inflation in Malaysia rose from 10% to 12.6% from 2022 to 2023, the medical costs in Malaysia have surged to the highest in 2023, driven by the rampant inflation and heightened healthcare utilisation.
The year-on-year raise in medical costs will have long term negative implications for Malaysia.
(Source: AON Global Medical Report 2023)
Rising Medical Costs
Rising medical costs are influenced by a combination of factors and the following factors contribute significantly to the high demand for healthcare services, resulting in the rise of healthcare costs:
As life expectancy increases, older individuals often require more frequent and intensive medical care, particularly for chronic conditions and age-related health issues.
The progressive advancement in medical technology and medication, along with the significant improvement of healthcare standards in Malaysia overtime. This has led to an increase in medical expenses to meet the rising demand for high-quality medical professionals and equipment.
Unhealthy and inactive lifestyle of Malaysians which are generally associated with poor health outcomes and higher healthcare utilisation. According to the recent national health studies, the overall statistics are at a worrying stage. (Source: National Health and Morbidity Survey 2022)
- 1 in 3 are overweight or obese.
- 4 in 5 are physically inactive.
- 2 in 3 are being sedentary.
- 4 in 5 do not consume enough fruits and vegetables.
- 1 in 3 drinks carbonated softdrinks every day.
- 1 in 10 eats fast food at least 3days in a week.
The significant increase in utilisation of medical services in Malaysia due to the prevalence of non-communicable diseases over the last decade. As lifestyle diseases and illnesses become more common and ever-changing, the need for medical treatment for all ages of people has also increased, leading to a rise in medical inflation.
How does the increased in my medical insurance charges/premium impact me?
It may affect your affordability in paying the additional premium and lead to difficulty in maintaining continuous insurance coverage, which can lead to financial difficulties if an unexpected event happens.
Should you require further information during this transition period:
For policyholders of Generali Life Insurance Malaysia Berhad
Please feel free to contact your Servicing Agent or our Customer Service by email at [email protected] or call us at 1300-88-1616, Monday to Friday from 8:30am to 5:30pm (excluding public holidays).
For policyholders of Generali Insurance Malaysia Berhad
Please feel free to contact your Servicing Agent or our Customer Service by email at [email protected] or call us at +603 2170 8282, Monday to Friday from 8:30am to 5:30pm (excluding public holidays).
We remain dedicated to providing our policyholders with guidance and support and hope that these interim measures will help mitigate the impact of rising premiums.
Thank you for your continued trust in Generali Malaysia.
Frequently Asked Questions
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