Thursday, November 19, 2015

Frequently Asked Questions on Expats Insurance in Malaysia

Frequently Asked Questions on Expats/MM2H Insurance

What are the documents needed to apply for Health Insurance in Malaysia?
a.) A photocopy of the passport (for the person who is applying), for ALL pages with stamps. Please initial/signature on each of the pages.
b.) A photocopy of the marriage certificate (as proof of relationship, if any)
c.) A valid visa at the time of the insurance application
d.) The Letter of Application for MM2H (if you are in the process of applying for MM2H) OR the copy of the valid MM2H visa if your application has been approved.
e.) Health declaration for pre-existing illness (if any)
f.) A copy of the hospitalization/medical or lab report/history (if any) on your current or past medical condition

Payment Mode
You may pay by using:-
a.) Credit Card
b.) Debit Card (limited to only Malaysian Banks)

c.) Local Cheques
d.) Bank Online Transfer

Payment by Cash is NOT encourage

Payment Frequency
a.) Monthly
b.) Quarterly
c.) Half Yearly
d.) Yearly

What is Pre-Existing illness?
Most of the insurance company (worldwide) does not cover any Pre-Existing illness. Hence a full health declaration is required prior to acceptance of the policy by the insurer.

The Pre-Existing illness is defined as any personal illness or health condition that was known and had existed prior to signing of an insurance contract. The insurance company require the client to fully declare any Pre-Existing condition before issuing an insurance contract.

Failure to declare any material fact which may impact how the policy is being underwritten may render the insurance policy to be null & void.

What is the LAST entry age for me to apply for the Health Insurance? 
The last entry age for anyone to be eligible to apply for the Health Insurance in Malaysia is age 70. Beyond that age, no Malaysian insurer is able to provide Health Insurance coverage. Once accepted, the insurance term can be extended until age 70~100.

What are the differences between medical card and health insurance? 
They are the same. The medical card is used for admission to the panel private hospitals in Malaysia. 

If the admission was to a non-panel hospital, the bill is to be paid first and claim later based on Reasonable & Customary Charges (RCC) as charged by most of the hospitals in Malaysia (both private or government owned hospitals).

How long do I need to wait for the approval of the health insurance? 
Generally for clean health bill, coverage can be given within a week of application.

For those that needs further investigation due to Pre-Existing health or prior admission, it would take approximately 2-3 weeks (or more), depending on how fast the medical reports can be submitted when required.

What are the Waiting Periods?
Waiting Period
Accidental Benefit
All Conditions
Pay & Claim
Medical Benefit
Hospitalization due to Accidents
Pay & Claim
All Other Illness
30 days
If <= 30 days, not covered. Pay & Claim
Specified Illness
120 days
If <= 120 days, not covered. Medical Card
Critical Illness & Payor Benefit
Heart attack, coronary artery disease and cancer
60 days
Pay & Claim
All other illnesses
30 days
Early Critical Illness
Special Benefits
60 days
Pay & Claim
Low and medium severity illnesses
90 days

How soon may I use the Hospital & Surgical (H&S) Facilities?
A 3 months Waiting Period (from the policy inception date) is required before a Guarantee Letter is able to be issued to the Panel Hospital. Should there be any admission required before the 3 months H&S facility is granted, you will be required to pay first and claim later.

Why do I need an Insurance Agent to buy health insurance policy in Malaysia?
The Health Insurance policies in Malaysia are purchased through an insurance agent whom will in return provide services, especially during a claim.

Does Malaysian class health cover covers until age 100?
Yes, it is possible be covered up to age 100, with higher premium, of course. For health coverage that expires at the age of 100, the annual insurance charges for the best plan available right now may cost ~ RM 14K/annual at entry age of 66-70.

Do note that insurance charges is not guaranteed and may increase as we get older.

Can I use the Malaysian class medical card for overseas treatment outside of Malaysia? 
No, since the premium is paid in Ringgit Malaysia, it is only fair that the reimbursement value & currency is based on the associated risk in a Malaysian hospital. 

If you were to travel outside of Malaysia, please buy a travel insurance with medical to cover for the period of travel.

Which Hospital may I use the Hospital & Surgical Facility? 
For a lists of Panel Hospitals, please click << HERE >>

Malaysian health cover seems cheap, what's the catch?
For a lists of items being EXCLUDED and NOT COVERED in the Malaysian class Health Insurance policy please click << HERE >>.

Does it cover dental surgery?
No, Dental conditions including dental treatment or oral surgery EXCEPT as necessitated by ACCIDENTAL injuries to sound natural teeth occurring wholly during the Period of Insurance.

Is it sufficient to cover me if I need a major heart bypass? 
Heart by pass in Malaysia costs in the range of RM 100K, Cancer ~ RM 250K-RM 300K, Stroke (30 days) ~ RM 100K (If ICU).

You may look into newer medical plans that offer RM1m, RM1.5m or RM2m limit

Is it Guaranteed Renewal? 
Prudential's policy is guaranteed renewal and non-cancellable (except for in the event of fraud). This means that no matter how much you've claimed, the insurer is guaranteed to renew the policy contract.

However, once a had exhausted your maximum claimable amount AND should you need to upgrade the Health Insurance, it is subjected to a new medical underwriting. This practice is industry wide to all the insurance companies in Malaysia.

What happens if I need to be away from Malaysia for a duration of time, say six months or more? 
The policy will continue to provide coverage when you return to Malaysia, as long as the premiums are duly paid and that the cash values (if any) in the policy account is able to sustain the insurance charges. 

Once the insurance charge is more than cash value there is a 30 days grace period for premium payment before the policy lapse and the coverage will automatically ends.

I just took up a policy, can I cancel it? 
There is a free-look period of 15 days after the delivery of your policy to allow you to review if it meets your needs.

If the policy is cancelled within this period, the value of units (at next pricing day) plus the un-allocated premiums, the insurance charges & any other charges that has been deducted less any medical fees incurred will be refunded.
What happens if after several years I decided to leave Malaysia for good?
If the plan is investment linked type of policy, should you choose to surrender the policy, you can withdraw the cash values as associated to the fund NAV at the time of surrender.

If after you've surrendered and decided to come back to Malaysia within 2 years, the policy is still able to be reinstated. The Reinstatement Terms & Conditions shall apply.

Who regulates the Insurance Companies in Malaysia? 
Prudential Assurance (M) Berhad is licensed under the Financial Services Act (2013) and is regulated by Bank Negara Malaysia (BNM).

Still cant find the answers to your question? Email me or Whatsapp 016-451 5957