Malaysia's insurance regulator, Bank Negara Malaysia (BNM) plans to include a no look-back clause for base medical and health insurance/takaful (MHIT) plans to be introduced in the country in early 2027.
This new clause will permit customers to continue with their health insurance coverage, once a continuous coverage period is agreed upon. Insurance companies and takaful operators will not be allowed to reject policyholders' claims on the grounds of pre-existing conditions.
This new initiative would also prevent claims from being denied due to previous nondisclosure of medical conditions. The base MHIT plan aims to broaden access to medical coverage, including for individuals with stable and controlled pre-existing conditions.
Malaysia's base MHIT plan is the country's first standardised standalone medical plan, featuring defined benefits, authority-set pricing and mandatory portability between ITOs. Coverage extends up to age 85, includes tiered c-payments by hospital type and introduces annual limits that increase with age.
BNM is finalising the mechanism with input from medical experts and industry stakeholders, covering aspects such as waiting periods and consistent underwriting rules.