Bank Negara Malaysia (BNM) is aware of the recent circulation of misleading social media posts by some registered agents of insurers/takaful operators (ITOs) and financial adviser’s representatives urging customers to purchase medical reimbursement products without co-payment features before September 2024.

BNM wishes to clarify that ITOs are required to offer medical reimbursement products, such as medical cards, with co-payment features (i.e. deductible, co-insurance/co-takaful) as an option at the point of sale or renewal of existing medical and health insurance/takaful (MHIT) policies/certificates effective 1 September 2024. However, existing medical reimbursement products without co-payment feature, including those with deductible below RM500, are still allowed to be offered by ITOs. This is clearly stated in the Policy Document on Medical and Health Insurance/Takaful Business issued by BNM on 29 February 2024.

An MHIT product with co-payment features typically offers lower premium/takaful contribution rate as compared to a similar product without co-payment. Co-payment is only required when claims are made by a policy owner/takaful participant. It also encourages consumers to take a more active role in their consumption of healthcare services. This, in turn, will help to reduce fraudulent medical claims and contain medical cost inflation that has risen by 36.3% cumulatively from 2020-2022. In the longer term, it aims to ensure that the cost of medical insurance and takaful remains affordable.

Consumers are advised to consider their financial circumstances and needs when deciding to purchase an MHIT product. For information and clarification on the MHIT co-payment features, please contact your respective ITOs for more details.