Kuala Lumpur, Malaysia: Prudential Assurance Malaysia Bhd (PAMB), one of the leading insurers in Malaysia, Monday launched the first of its kind medical plan that provides coverage up to RM225, 000 to help citizens above 45 years of age take care of large hospitalization and surgical expenses.

"PRUsenior med is available to those between age 45 and 70. It is designed with level premium and is guaranteed renewable up to age 80," said it's Chief Executive Officer (CEO), Ng Keng Hooi at a press conference here Monday.

He said the premiums are made more affordable with a co-insurance feature which requires the insured to pay 10 percent of the medical bill or RM3, 000, whichever is higher.

"This allows the insured to take care of minor hospitalization and surgery costs that are very expensive to insurer because of the very high incidence of them occurring at the older ages," he said.

Ng explained that this policy comes in two ways of deductible. The first one is deductible at RM3,000 which the policyholders have to pay RM220 premium per month and another deductible is at RM6,000 which they have to pay RM170 premium per month.

He said Prudential listened closely to the needs of Malaysian retirees and had shared their two main concerns regarding retirement, which are to ensure they have enough money to enjoy a comfortable lifestyle, and they want to ensure that they have the right protection against the high cost of medical care, especially associated with hospitalization and surgery as they get older.

He said besides high surgical and hospitalization cover, PRUsenior med also provides compassionate benefit of RM5,000 to take care of final (burial) expenses in the event of death.

For policies which have been in force for at least 12 months, this compassionate benefit will be paid immediately upon submission of the death certificate.

"Customers will be given the option to take up a Personal Accident (PA) policy for senior citizens. This provides Accidental Death and Permanent Disablement benefits up to RM200,000," he added.

Another insurance plan, the PRUshield Essential Senior PA, also provides other benefits such as compassionate and repatriation allowances, nursing care, immobilisation aid and physiotherapy, and double indemnity benefit for Accidental Death or Permanent Disablement due to travelling in public transportation.

Ng said PRUsenior med policyholders also can enjoy Hospital Alliance Services (HAS) which has a panel of 45 hospitals nationwide offering hassle-free admissions and speedy medical claim payment processing to the customers.

"We will issue a medical card to the policyholders which entitles them to gain quick and easy admissions and settlement of bills in any of the hospitals in the HAS network," he said.

The CEO said that this policy would provide further convenience to customers who purchase PRUsenior med as they only have to pay 10 percent of the eligible expenses or the minimum co-insurance amount and leave the balance of the medical expenses incurred to them.

He added that PRUparents purchaser, which was launched before this, could be converted to PRUsenior med without any extra charges needed.

"In fact the premium will be lower if they move to this one but it's not identical to the product as it covers a different part of the needs," he said.

PAMB is the second largest in terms of new business and one of Malaysia's fastest growing insurance companies. PAMB registered an 11 percent growth in 2003 achieving RM370 million in new business (annualised premiums).