What Could You Expect from Your H&S Insurance Application?

The insurance company must process your application and give you an answer within
30 days from the date of receiving your application. Normally, there are 4 different responses, namely:

1) Accepted

Accepted means your application is fully approved by the insurance company and you start to get the protection.

2) Loaded with Extra Premium

Loadings means your application is approved by the insurance company, but you have to pay extra premium. The reasons you have to pay the extra premium might be due to:

· Poor health conditions (for example, over weight, under weight, high cholesterol level, high blood pressure, etc.)
· Previous health history

Normally, you have to pay an extra 25%, 50%, 75%, or 100% of premium. The percentage of loading vary widely among insurance companies. Some might ask you to pay extra 25% of premium, while others might ask you to pay 50% extra on the same health condition (for example, high blood pressure). The point here is some companies penalize you less than others.

You must try to apply to another insurance company if you are not satisfied with the loading imposed on your insurance application.

3) Exclusion

Exclusion means your application is accepted by the insurance company but you cannot get 100% protection. You acceptance is subject to certain exclusions. For example, a person with high blood pressure might receive an underwriting outcome as ‘This policy does not cover any diseases or complication arising due to high blood pressure like heart attack, stroke and others.’

There is no standard underwriting process for insurance companies to determine which exclusions they will impose on your application.

Some insurance companies have better understanding on certain medical conditions like high blood pressure, high cholesterol level and they are comfortable to accept applicants with those conditions.


4) Rejected

Rejected means the insurance company does not accept your application. Some insurance companies use the word 'postphoned' to reject your application. They ask you to re-apply after certain months or even years. Do not feel insulted if this happens to you because there are many people out there receiving the same faith like you.

One insurance company denies your application does not mean that all insurance companies will deny your application. Do not give up, try to apply to another insurance company.

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Thanks to all my readers for praise and suggestions given to me since I started this blog few months ago.


**posted to www.MalaysiaInsuranceGuide.blogspot.com at 1.35pm, 5 Dec 06, Malaysia time**

Malaysia: Knowing your right in Cancellation of H&S insurance policy

First of all, I would like to emphasise that I DON’T ENCOURAGE YOU TO TERMINATE your H&S insurance without very solid reasons.

Bank Negara Malaysia (Central Bank of Malaysia) has made it compulsory for all insurers to refund certain percentage of annual premium to you if you decide to cancel your H&S insurance.

There are 2 types of premium refund:

1) Free-look period / Cooling-off period

If you decide not to take up the H&S insurance which you have just bought for any reason, you have the right to cancel the policy by returning it to the insurer within 15 days from the date of delivery of the policy.

You are entitled to a full refund of premium paid, after deducting administrative expenses and medical expenses incurred by the insurer in issuing the policy. These expenses shall be RM50 or 10% of the gross premium paid, whichever is lower.


2) Cancellation of policy after the free-look period
You may cancel the policy at any time by giving a written notice to the insurer after the free-look period.

If no claim has been made during the current policy year, you will be entitled to a refund of annual premium based on the scale below:

Period not exceeding [Refund of annual premium,% ]
1 month [80%]
2 months [70%]
3 months [60%]
4 months [50%]
5 months [40%]
6 months [30%]
7 months [25%]
8 months [20%]
9 months [15%]
10 months [10%]
11 months [5%]
>11 months [Nil]

Finally, I would like to emphasise that I DON’T ENCOURAGE YOU TO TERMINATE your H&S insurance without very solid reasons.

**Posted to www.MalaysiaInsuranceGuide.blogspot.com on 22th Nov 2006, 11.43am, Malaysia time**