Earlier in the week, we reported that motor tariff premium rates in the country were set to be revised effective February 15, continuing on the four-year adjustment period that was first announced in 2012.
The tariff revision is part of the New Motor Cover framework – the framework will pave the way for the detariffing of motor insurance premiums in 2016, in which premium rates will be further differentiated in accordance to the risk profile of individual vehicles; those with good claims experience will enjoy much better premium rates than those with a higher risk profile.
Below is a statement issued by the Persatuan Insurans Am Malaysia (PIAM) on the matter:
The General Insurance Association of Malaysia (PIAM) wishes to clarify that the gradual premium adjustment under the new motor cover framework was introduced in 2012.
The new motor cover framework has a two-prong strategy, i.e. to enhance efficiency in the provision of motor cover by the industry, with a gradual price adjustment that will ensure that public is able to purchase motor insurance at affordable premiums.
Under the framework, premium adjustments take effect from January 1, 2012 over a period of four years. This year (effective February 15) represents the third round of adjustments on motor tariff premium rates. The adjustments will be small and implemented gradually in stages.
In respect of Third Party cover, motorcycles of 110 cc, for example, will experience a premium increase of between RM1 and RM3.50 per year only (a maximum of 30 sen per month) over the next four years.
For a private car of 1,400 cc, the premium adjustment will be between RM6 to RM34 per year (a maximum of RM2.80 per month) over the same period. For express buses, the impact of the premium adjustment on the passengers would be minimal at less than 10 sen per passenger per trip.
Unlike previous years, there is no premium adjustment for commercial goods carrying vehicles, taxis and hire cars (chauffeur-driven) during this round of adjustment.
Meanwhile, there are other classes of vehicles, such as school bus, factory bus, stage bus and tourist bus as well as hire cars (hirer driving) in which premiums have not been adjusted at all. This is to reflect their relatively better overall claims experience.
The new motor cover framework is a positive step towards promoting a liberalised insurance sector, with further measures taken to improve the motor insurance and claims settlement processes.
To enhance the claims settlement processes, insurers have adopted various measures and one of it is the introduction of the Accident Assist Call Centre (AACC) to provide emergency assistance to policyholders involved in road accidents. The 24-hour hotline at 1300-22-11-88 also offers accident towing services and attends to claims enquiries.
The Association advises policy owners who wish to obtain clarification on how the new motor insurance framework will impact them to direct enquiries to their respective insurance company for further assistance.
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bla bla bla………… rakyat kena jugak!thanks to all of you that voted for dUMNO!
Um NO- more lah !! Bn is done for ! Bn is done for !! Postpone toll hike, increase insurance ?!
Fking piece of shit government ! Go figure guys!
Price collusion by industry should be investigated under the competitions act .
Price collusion by industry should be investigated under the competitions act .
yang memberi komen dalam nieh tak tahu membaca ker semua?
Do you seriously do not know why the tariffs are going up?
Did no one read the previous posting by Paultan?
“These yearly increases will continue until the planned detariffing of motor insurance premiums in 2016, when premium rates will be further differentiated in accordance to the individual risk profile of vehicles, owners, as well as potential pricing differences between insurers.
When the detariffing comes into effect, we might see the emergence of ‘full service’ insurers with higher rates but more perks such as complimentary tow truck service, as well as ‘budget no frills’ insurers.”
http://paultan.org/2014/02/04/new-motor-insurance-tariffs-15-february-2014/
U can’t have free market if u don’t implement market liberalisation.
Good one mr..!
The tariffs were limiting the insurance companies from raising the premiums to unsustainable limits. Previously the low petrol price and insurance premiums were still making it possible to own a vehicle despite the prices were ridiculously high. At this current situation with high vehicle prices, high petrol price and higher insurance premiums, vehicle ownership will become nearly impossible for most middle income rakyat. Expect more and more people to suffer credit crisis because they can’t sustain the skyrocketing costs. Instead of just liberating the the tariffs, why no action on unjustifiable costs of loading and excess? Not to mention poor enforcement of eradicating corruption by licensed adjusters?
Don’t fall for buzzwords like market liberalization, if the govt is sincere about this then they should remove instruments like special licenses and permits to allow more players to break up monopolies and compete for consumers. By just removing tariff ceilings, it would only serve the insurance monopolies in the market to collude and jack up prices with no other viable options for the people.
Hallo bro. All of us read it right detariffing can be translated into many ways. One of them is that, by 2016, they already increase the premium, let say 50%. Then all of us need to pay 50% higher (assuming this for low risk average Joe) and for higher risk….they might further increase yo what ever percentage they require. Bottom line is, the 50% higher premium will be their based line. I don’t see the relevant of increasing the premium with detariffing. IMHO, they can implement 1 step of detariffing without increasing the premium such as complimentary truck service for those with full NCD 3 years and above or etc.
more perks such as complimentary tow truck service, as well as ‘budget no frills’ insurers.” ….. an excuse to bundle everything into one and jack up prices. Someone must pay for these perks you are talking here. Either from consumers’ pocket or govt or someone else.. my bet is our own pockets la.
I see the future from the posting u quoted. Premium rates will be differentiated according to various assessments… COnfirm another jerk will categorize 2016 myvi is SAFER than 2013 Volvo XC90. HAHAH!!!
And still people ask me why I am so frugal and only change car every decade
I was testing out a Mitsubishi attrage couple of days back with price tag of 77k (auto) not because it is a looker, not because it is well equipped but because it has a 1.2 litre engine that gives the best mileage at 21km/l with decent room and space minus all the complexity of hybrid , etc .
Aside from that, the consideration is the cheaper road tax and insurance.
The strange thing is that 10 years ago a 80k car is the price level for entry level of non national cars and many can buy without blinking eyes
Fast forward today , u can see many non national car makers has breached that price level and have come lower , e.g. Almere , Attrage ( I hav excluded Honda jazz coz it is a very old model that ‘deserve’to go cheap)
But many young folks I know even in their late 20s or early 30s will hessitate to buy these non national cars as their second car after myvi and proton, why? Bcoz all has crunched their numbers and found they cannot afford it
Unfortunately, I found it goddam difficult to understand the whole situation & even more so the statement by PIAM.
Why in the world can’t they explain in layman words..?
Anybody care enough to help?
On another note, young malaysians’ feet are being dragged with a lot of debt just trying to survive especially in the klang valley. At the same time, the ministers are enjoying their vip seats be it in the traffic jam, restaurants, hospitals, or even at the kedai runcit. Eh, i forgot that they don’t go to kedai runcit no more.
This motor insurance premium adjustment will greatly effect those people with middle income and below.
hmmm apa cerita lately banyak bengkel kereta terbakar..bukan sikit kereta terbakar 30 – 70 kereta..tu sure insurance kena cover..
Kenaikan premium insuran laju macam kilat, bila tuntutan kemalangan lambat macam siput babi…
Again, the decrease of kang kung price will balance all this price increase.
Why are they punishing the majority for the fault of minority?? Those who have no accident history pay the same premium same as the ones who don’t have a care in the world since they have no more NCD!
Who’s the person who decides this kind of things? I want to belanja him/her eat kangkung!!