By Adam Azman
SHAH ALAM, July 6 — Bank Negara Malaysia (BNM) is considering introducing a ‘no look back’ protection policy that would prevent insurers from rejecting claims due to unintentionally undisclosed pre-existing medical conditions after policyholders have maintained continuous coverage for a specified period.
Deputy Finance Minister Liew Chin Tong said the proposed moratorium on claim disputes is aimed at further strengthening protection for medical and health insurance and takaful (MHIT) policyholders.
“To further strengthen protection for policyholders, BNM is considering implementing a moratorium on claim disputes, also known as ‘no look back’ protection.
“This means that after a person has continuous insurance or takaful coverage for a specified period, insurance companies or takaful operators cannot reject claims on the grounds of pre-existing illnesses that were unintentionally not disclosed,” he told the Dewan Rakyat today.
He was responding to Cheras member of Parliament Tan Kok Wai, who asked about measures being taken by the government to strengthen insurance regulations to protect policyholders, particularly patients with critical illnesses and cancer, from arbitrary policy cancellations, retrospective claim rejections and unclear disclosure requirements.
Liew said the government acknowledges concerns among policyholders regarding the continuity of insurance protection.
“Insurers and takaful operators are required to comply with the Medical and Health Insurance/Takaful (MHIT) business policy document issued by BNM, which prohibits companies from unilaterally cancelling policies or refusing to renew coverage simply because policyholders have made claims or developed health conditions after obtaining insurance,” he said.
He added that the government is strengthening the claims process through the Healthcare Partners Protocol and Solutions Committee (HPPSC), involving BNM, insurers, hospitals and healthcare stakeholders, to address disputes involving MHIT claims.
“The committee has recently introduced several initiatives, including promoting best practices in determining insurance and takaful coverage for new medical technologies and treatments.
“According to 2025 industry data, insurance and takaful operators continue to maintain an average claim approval rate of more than 90 per cent, collectively approving more than one million claims annually,” he said.
Liew said policyholders who are dissatisfied with claim decisions should first raise the matter with their insurer or takaful operator before escalating complaints to BNM or the Financial Markets Ombudsman Service (FMOS), where disputes can be resolved free of charge.
