Page 46 - MEDICAL AND HEALTH INSURANCE

MEDICAL AND HEALTH INSURANCE

2.2.4 CONTRIBUTORY AND NON-CONTRIBUTORY SCHEMES

In the Group Employee Benefits Scheme, the PMI policy's premium
payment may be fully paid by the employer, which is deemed as non-

contributory scheme.

Alternatively, the premium may be partially paid by the employees in

terms of contribution, which may be by way of salary deduction. If by

contribution, it may also be voluntary for employees to include their
dependants to enjoy the group rate as an extension of cover. In such cases

of voluntary contribution, the insurer may require a minimum

participation of generally 75%, as a guide to grant the voluntary

contributory cover on a group policy.

2.3 INTERNATIONAL POLICIES

International policies are basically PMI policies that cover the Insureds

who travel outside Malaysia for working or living abroad. The costs of
overseas treatment can be very high, especially in the U.K. or the U.S. for

which a local PMI cover may not suffice. Generally, in the local PMI

policies, there is a policy condition on 'Residence Overseas', in which the

policy will not cover any medical treatment received by the Insured
outside Malaysia, if the Insured resides or travels outside Malaysia for

more than ninety (90) consecutive days.

It is usually a yearly renewal policy with an option to cover family

members as well. The payment of claims would normally be arranged in

the local currency of the country of residence and the insurer would also
facilitate the local panel of hospitals and clinics for ease of claims servicing.

45 | P a g e