KUALA LUMPUR (Nov 27): A government backbencher has called on Bank Negara Malaysia (BNM) to investigate insurance companies for "excessive profiteering" over premium hikes.

Sim Tze Tzin (Pakatan Harapan-Bayan Baru) said BNM has the authority to regulate insurers' decisions to increase medical insurance premiums and that the central bank should not simply dismiss it as a "business decision".

"If the Ministry of Domestic Trade and Cost of Living can conduct an investigation into 'excessive profiteering' over a 10-sen increase in egg prices, why can’t Bank Negara investigate premium hikes of 10% to 100%?" Sim said at a news conference at the Parliament building on Wednesday.

Local media have reported that medical insurance premiums are expected to rise between 40% and 70% next year, following notices sent by insurance providers to policyholders, citing the rising cost of medical care in private hospitals as the primary reason.

With the hike in insurance premiums, Sim claimed that some consumers have opted to cancel their medical insurance and turn to government hospital services.

He warned that this would indirectly increase the burden on public healthcare and disproportionately affect lower-income groups, as they would face longer waiting times in government hospitals.

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