Yes — switching insurers almost always resets your waiting periods and gives the new insurer the right to exclude pre-existing conditions entirely. This is the single most important thing to understand before you cancel your current policy, and most people only find out after it is too late.
What “Waiting Period” Actually Means When You Switch
When you first took out your medical card, there was a waiting period before certain claims were covered — typically 30 days for general hospitalisation and up to 120 days for specific conditions like cancer, kidney disease, or heart-related illnesses. Once you cleared those waiting periods with your existing insurer, you stopped thinking about them.
Switch insurers, and the clock starts again. The new insurer treats you as a brand-new policyholder and applies its own waiting periods from day one. If you need to be hospitalised in the first 30 days after switching, that claim may be rejected entirely.
The more serious issue is not the waiting period itself — it is the pre-existing condition clause.
How Pre-Existing Conditions Work for a New Insurer
A pre-existing condition is any illness, injury, or health event that existed before your new policy began — regardless of whether your old insurer was covering it. The new insurer’s underwriting team looks at your medical history, and anything you have been diagnosed with, hospitalised for, or treated for becomes grounds for exclusion.
This includes conditions you may not think of as “serious”:
- High blood pressure (hypertension), even if well-controlled with medication
- Diabetes or pre-diabetes, regardless of when it was diagnosed
- A previous surgery, including appendix removal, gallbladder removal, or orthopaedic procedures
- Mental health consultations, including anxiety or depression
- Any prior hospitalisation, for any reason
If you are over 40, or if you have had any health event in the last five to ten years, there is a strong chance the new insurer will exclude one or more conditions — or load your premium significantly to account for the perceived risk.
Your existing insurer, by contrast, is bound by guaranteed renewal. They cannot drop you for making claims, and they cannot retroactively exclude conditions that were already covered under your policy. A new insurer does not carry any of those obligations.
The BNM Exception: If Your Policy Lapsed Due to Repricing
Bank Negara Malaysia made one important carve-out in response to the 2024 repricing wave. If your medical policy lapsed specifically because you could not afford the repricing increase — not because you voluntarily cancelled it — you may be eligible for reinstatement without additional underwriting requirements.
This means you could potentially restart your old policy at its previous underwriting terms, without the new insurer running a fresh health assessment on you. This window is limited and the conditions are specific, so if this applies to you, contact your existing insurer or a licensed advisor immediately to find out whether you still qualify.
The Right Order of Operations Before Any Switch
If you are considering moving to a different insurer because your premium has increased, the safest approach is:
- Do not cancel your existing policy first. Cancelling before you have secured a new policy and understood its terms leaves you exposed and potentially uninsurable for certain conditions.
- Request a policy review with your current insurer. Restructuring your existing policy — increasing the deductible, adding a co-payment, or adjusting your coverage limits — often reduces your premium by 30–60% without resetting anything.
- If you still want to switch, apply for the new policy while the old one is still active. Only cancel once the new policy is confirmed, issued, and you have read every exclusion on the schedule.
- Compare the exclusion schedules side by side, not just the premiums. A policy that is RM 200/month cheaper but excludes your heart condition is not actually cheaper — it is just cheaper until you need it.
Getting a policy review done before any switching decision is not just useful — for most people over 40, it is essential.
What to Do If Your Premium Has Jumped
The 2024–2026 repricing cycle has left many Malaysians facing premium increases of 40–100% or more. The instinct to shop around is completely understandable. But the financial risk of resetting your underwriting status is real, and for many people it outweighs the premium saving.
Before switching, ask your current insurer or advisor:
- Can I increase my annual deductible to reduce the premium? (See deductible plans explained)
- Can I add a co-payment clause to lower my base premium? (See co-payment explained)
- Are there any riders I can remove that I no longer need?
- What would my premium look like if I dropped my room type by one tier?
These adjustments work within your existing policy, preserve your underwriting status, and can make a significant dent in what you pay each year.
Frequently Asked Questions
If I switch insurers, can I still get coverage for conditions I already have?
It depends on what those conditions are and how the new insurer underwrites them. Common, well-managed conditions like controlled hypertension are sometimes accepted with a premium loading rather than a full exclusion. More serious conditions — cancer, chronic kidney disease, prior cardiac events — are typically excluded entirely. You will not know until you apply and receive the offer letter. Never cancel your existing policy before you have that offer letter in hand.
Does “guaranteed renewal” mean my insurer can never raise my premium?
No. Guaranteed renewal means your insurer cannot refuse to renew your policy solely because you made claims. It does not cap or freeze your premium. Insurers can — and do — increase premiums for all policyholders in a given pool as medical costs rise. The difference is that an increase applies to everyone in the pool, not just to you personally because you made claims.
How long is the waiting period for pre-existing conditions at a new insurer?
Most insurers in Malaysia exclude pre-existing conditions permanently rather than applying a temporary waiting period. This means if you had a heart bypass before switching, the new insurer may exclude all cardiac-related claims indefinitely, not just for 120 days. Always read the policy schedule, not just the brochure.
What is the BNM base MHIT plan and does it change this?
The BNM base Medical and Health Insurance/Takaful (MHIT) plan, expected to roll out across all licensed insurers, is designed to offer standardised, portable coverage at more predictable pricing. The portability provisions in the base plan are intended to reduce the underwriting penalties for switching — but the details of how pre-existing conditions will be treated under portability are still being confirmed. Speak to a licensed advisor before making decisions based on this.
Can FINNO. help me review my policy before I make a decision?
Yes. FINNO. is an authorised Allianz agency and our advisors do policy reviews as a standard part of what we offer — not as a sales exercise, but as a structured review of your current coverage, what it costs, and what your realistic options are. You can book a free consultation with no obligation to change anything.
Have a question that wasn’t covered here? Our advisors at FINNO. offer free, no-obligation consultations — no hard sell, just honest answers about what’s right for your situation.