According to the November 29, 2004 issue of Personal Money, soon after the February 18, 2000 launch of Sihat Malaysia, RM130 million worth of premiums were signed up and the number of hospitals on its panel stood at 72.
By August 31 2004, RM130 million in claims have already been paid out. In the intervening time, the number of hospitals on its panel was reduced to 60 in April 2002 and also the premiums were gradually increased in stages; by 20% in April 2002 and by another 15% to 50% in April 2003. The effect of the increased premiums and reduction in the number of hospitals on its panel was a slow-down in sales.
In 2003, only RM53 million in premiums were collected, compared to RM60 million in 2002 and RM130 million in 2000 and 2001 combined. Premiums from November 1999 to September 2004 have amounted to RM217 million. [Editor's Note: I know the figures don't add up but that was how it was reported in Personal Money.]
Complaints from policyholders about problems during admissions also contributed to Sihat Malaysia's decreasing popularity. However, the single biggest weakness of Sihat Malaysia is that it exercises the right not to renew a policy because of a single large claim made, even if the policyholder has been a customer for many years.
Other, more reputable, insurance companies which sell guaranteed renewable medical insurance are taking away Sihat Malaysia customers. Despite having comparable, or slightly higher premiums, they provide medical insurance products with better coverage and with more clinics and hospitals on the panel.
MediExpress (M) Sdn Bhd CEO Paul Cheok admitted there is a need for further improvements in the Sihat Malaysia programme.
Copyright 2003-2004 Azlan Adnan Legal Notice
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