With continuously rising medical costs, many Malaysians face a dilemma: should they replace their old medical card with a new version? If you have recently started paying attention to medical and health insurance as well as Islamic insurance (MHIT) coverage and are considering switching or upgrading, you must first understand the rules clearly. Switching medical cards not only involves changes in premiums but, more importantly, how the waiting period (Waiting Period) is calculated and whether pre-existing conditions can still be claimed. This article will provide an in-depth analysis of the pros and cons and the standard process of changing from an old medical card to a new one.
Why Upgrade or Switch Your Old Medical Card?
Before deciding to replace your old medical card, first confirm whether your current coverage is truly insufficient. Here are the main reasons Malaysian policyholders choose to upgrade or switch their medical cards:
- Coping with Medical Inflation: According to reference materials published by Bank Negara Malaysia (BNM) and the insurance industry, medical costs in Malaysia continue to rise, with medical inflation rates in recent years reaching as high as 15%, far exceeding the global average. If you are still holding a policy purchased more than a decade ago, its annual limit may only be tens of thousands of ringgit, which is completely inadequate for today’s expensive private hospital treatments for conditions such as cancer and heart disease.
- Escaping Outdated Old Terms: Many early old policies include “Lifetime Limit” or “Co-insurance” clauses (where the policyholder must share medical costs proportionally). Modern new medical cards have mostly removed lifetime limits and can more comprehensively cover eligible medical expenses.
- More Cost-Effective New Products on the Market: Insurance companies now offer many innovative products, such as those with No Claim Discount or high value deductible options. If you are in good health and rarely make claims, new products may save you more on premiums or provide better value.
Difference Between Upgrading Old Medical Card and Switching Insurance Companies
If you decide to replace your old medical card with a new one, you generally have two options: “Policy Upgrade” with your existing insurer, or directly switching to a new insurance company (Switching Policy). The core differences are as follows:
| Comparison Item |
Upgrade with Same Company |
Switching to New Insurance Company |
| Underwriting Process |
Usually simpler, may only require filling out a form; new medical examination depends on health status. |
Must complete full health declaration and undergo a completely new underwriting process. |
| Waiting Period |
Existing coverage usually exempt from recalculating waiting period; waiting period only applies to “newly added coverage” or new benefits. |
All terms reset; must serve new 30-day general illness and 120-day specified illness waiting periods. |
| Pre-existing Condition Claims |
Within the old policy’s coverage limit, pre-existing conditions may continue to be covered, but newly added limits do not apply. |
Pre-existing conditions will be directly excluded under the new policy. |
| Premium & Added Value |
New premium calculated based on actual age at application. Retains the existing company’s ecosystem and App convenience. |
New premium calculated based on actual age at application. Free to choose a better company, medical network, and package. |
Key Point When Switching Medical Cards: Will the Waiting Period Be Recalculated?
This is the biggest pain point when switching medical cards. Simply put, if you switch to a completely new insurance company, the waiting period will definitely be recalculated.
According to common Malaysian medical insurance industry norms, after a new policy takes effect, the policyholder must go through a new 30-day waiting period for general illnesses and a 120-day waiting period for specified illnesses (such as hypertension, cardiovascular diseases, various tumours and cancers, etc.). If you only perform an Upgrade with the same company, insurers are usually more lenient — the existing coverage does not require a new waiting period, and only the “newly added coverage” portion will have the new waiting period applied.
Experts strongly recommend that during the insurance switch process, never cancel the old policy in advance, to avoid a coverage gap if you unfortunately fall ill during the waiting period.
Standard Process for Switching Insurance Company (MHIT) or Upgrading
To ensure a smooth Upgrade of your Medical Card or insurance company switch, please follow these standard operating steps:
- Step 1: Request and Review Existing Policy Documents Ask your current insurance agent for detailed policy documents to confirm your current annual limit, whether there is a lifetime limit, and the existing benefits, so you can assess the real coverage gaps.
- Step 2: Submit Application and Make Honest Declaration Submit the MHIT application to the new insurer and be sure to honestly complete the Health Declaration form with past medical records and health conditions. Concealing any illness may result in future claims being strictly rejected.
- Step 3: Pay Premium and Patiently Serve the Waiting Period After the new policy is approved and the first premium is paid, continue to keep the old policy. During this transition period, your old policy will still provide strong protection if you suffer from sudden illnesses.
- Step 4: Only Cancel the Old Policy After Confirming the New Policy Is Fully Effective Only after the new policy has fully passed the 120-day specified illness waiting period and is confirmed to be fully effective should you formally submit a cancellation/surrender application to the old insurer.
Limited Budget? Consider Medical Card Top Up or Rider Solutions
If you find that buying a brand-new medical card’s premium has greatly exceeded your budget as you age, or you are worried about losing coverage for pre-existing conditions when switching insurers, you do not necessarily need to fully cancel your old policy.
A popular alternative currently on the market is the “Medical Card Top Up” solution. Its advantage is that you do not need to cancel your old policy; you only need to purchase an additional new medical card with a higher “Deductible”. For example, you can purchase a plan with a RM30,000 deductible but an annual limit of up to millions. When facing huge medical bills, the first RM30,000 can be claimed from your old medical card (or company medical card), and the excess will be covered by the new Top Up medical card. This not only significantly increases the overall annual limit at a low premium but also retains the benefits of the existing policy. You can also check with your existing insurer whether specific riders can be added directly to expand coverage.
3 Major Hidden Risks of Switching Old Medical Card to New
Although the high coverage of new medical cards is very attractive, you must carefully evaluate before taking action, as blindly switching policies may expose you to the following three major hidden risks:
- Risk of Pre-existing Conditions Not Being Covered: If you had any illness, surgery, or long-term medication during the old policy period, the new insurer is very likely to list these previously treated conditions as exclusions, meaning related illnesses will not be claimable from the new company in the future.
- Recalculation of the 2-Year Contestable Period: Within the first two years of the policy taking effect, the insurer has the right to conduct strict reviews of the policyholder’s health declaration. Switching to a new policy means this observation period restarts, increasing the chance of strict scrutiny on early claims.
- Premium Jump Risk: Medical insurance premiums increase with the policyholder’s age. No matter which company you switch to, buying a new policy at your current age will inevitably result in a much higher base premium than when you bought the old policy at a younger age.
Frequently Asked Questions
After switching to a new medical card, can I still claim for previously contracted illnesses?
Generally, if you directly switch to a new insurance company, the new policy will list previously contracted or treated illnesses as “pre-existing conditions” and exclude them, so no claims can be made. However, if you only perform a policy Upgrade with your existing insurer, pre-existing conditions may continue to be covered within the old coverage limit, but newly added limits usually do not apply.
Does upgrading a medical card require a new medical examination?
This depends on the new policy’s coverage amount, your current age, and past claims and health records. If you are only slightly increasing the limit with the same company, in some cases you may only need to fill out the latest health declaration form; but if significantly increasing the coverage or the applicant is older, a new medical examination may be required.
Should I cancel my old medical card first before buying a new one?
Strongly advised against doing so. After the new medical card takes effect, there will be a 30- to 120-day waiting period. You must wait until the new medical card is approved, effective, and has successfully passed the specified illness waiting period before considering cancelling the old policy, to avoid a situation where neither policy covers you in case of an accident or sudden illness.
How long exactly is the waiting period for a medical card?
According to general Malaysian industry norms, accidental injuries are usually covered immediately; general illnesses (such as colds, fever, gastroenteritis) require a 30-day waiting period; while specified illnesses (such as hypertension, cardiovascular diseases, various tumours, etc.) have up to a 120-day waiting period.
Information Sources
- bnm.gov.my
- fenetwork.my
