Malaysian NGO formed to help aggrieved insurance claimants

The bureau’s chief, Ng Kian Nam, said at a virtual press conference that the NGO was formed after they received over 30 complaints from insurance policyholders.

“They suffered unfair treatment by the insurance companies who terminated their life and medical policies at a time when they and their families needed the protection the most,” Ng was quoted as saying by the report.

He added that many complainants were unable to access crucial medical treatments because their policies were rejected for not being able to fully disclose their medical history.

According to Ng, CPRICM seeks to educate consumers about their rights as insurance policyholders. It will also lobby the government to review certain practices of the insurance industry, one of which is the medical history disclosure clause.

Ng also argued that many insurance agents are not able to provide proper advice to clients, which could lead to problems later on.

“We also would like to invite the top management of insurance companies and Bank Negara to dialogue to try and settle the disputes amicably on some policy matters,” he said.

Also present at the press conference was a complainant, Dr Amelia Siah Siang Yee. According to Siah, the insurance company terminated her policy and that of her infant daughter (both of which were purchased in 2019) after she was diagnosed with breast cancer in June 2020, for alleged violation of the disclosure cause.

“My claims with two other insurance companies were successful but one was rejected as I had undergone an MRI scan in February 2018 for back pain,” Siah said at the press conference. “There is no relevancy between my back pain and cancer.”

Siah added that no medical treatment for her back pain was required for her back pain. She also argued that her daughter’s policy should not have been cancelled, as it was not connected to her claim.

The insurance company had already rejected two appeals from her, Siah said. Ng, who is a lawyer, said he will send a letter of demand to the insurance company regarding the matter.