The Malaysia Competition Commission (MyCC) says it is investigating a number of general insurance companies as well as the companies’ association under the Competition Act 2010. They are being investigated for their alleged involvement in anti-competition agreements in relation to the motor vehicle repair industry in the country, Bernama reports.
The investigation involves commercial activities between vehicle repair workshops and general insurance companies, and is centred on trade discounts on the pricing of spare parts for certain vehicle makes as well as the labour rate being paid to the workshops, MyCC CEO Datuk Abu Samah Shabudin said via a statement.
The commission said that under the Competition Act 2010, agreements considered as anti-competition include agreements on fixing prices in the market where the industries compete.
“Chapter one of MyCC’s Guidelines on Prohibition states that anti-competition agreements covered the fixing of prices including the fixing of a particular price or that of price elements such as the fixing of discounts, the percentage in price increase or a minimum/maximum price between competitors,” the statement said.
Abu Samah said the MyCC – which is an independent body responsible for enforcing the Competition Act – will continue to monitor the activities of associations, including professional bodies, to ensure that all related parties were not involved in activities that could prevent, prohibit or interfere in competition within the marketplace.
Any infringement under the Act may attract a financial penalty of not more than 10% of a company’s total revenue throughout the period of violation, he added.
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Good.. These car insurance are like scam to me. Pay insurance of a car that is valued so much higher then market price, but when claim, claim market value. If you insure slightly higher then market value but lower then their recommendation, they dont honor your claim completely because the insurers say you under insure.
in my case they ‘increase loading rate’and you end-up paying more if you insured lower than their recommended value. lucky double their quotation
Dont just talk about price fixing. Talk about the dirty adjusters.
What is Myccdoing about all the false claims for car accidents? All of us know that when we meet an accident, though the damage is about, say RM5000, but after the claims and repair are done, if you call your insurance company, you get a shock to find out that the repairs amounted to RM20,000.
Yes, the adjusters as well as the police are in it. Please Mycc, do something about this. I have had at least 5 accidents and at the most, damage was RM1000 but when I call to find out how much was claimed, the total each time was about RM8000.
This is getting out of hand. 9 out of 10 cars have fraud adjusters involved who get kickbacks from the workshops and also the Investigation Police officer also gets kickbacks from the workshop making the claims.
This is why our premiums are getting higher and higher. It is because of corrupt adjusters and corrupt policemen.
Anyone dares to contradict what I have said? Don’t believe, go and call your insurance company and see how much your last accident cost the insurance company.
Even a small nudge on the bumper also, about RM3000 is claimed. MyCC, please lah do something about this. The Insurance Industry recently increased the premium because they said cost was rising. Well cost is rising because your adjusters are all multi millionaires receiving kickbacks from the workshops, and these workshops are cheating you all left right and centre.
Billions of false claims are done by the adjusters and worskshops. Time to make a change!
my friend. you spot on it. the dirty adjuster you are saying is hell lot of main factor that causes insurance premium go sky high. most of them are those third party adjusters have their license approved by Bank Negara. even a year 1987 old saga can be recommend to repair for RM30K.. so what should we do when the authority goes blind?
It is more towards dirty workshops. One PIAM repairer in Cheras who is also appointed repairer for 1 Mazda dealer and 1 Hyundai dealer will claim everything and more but repairs those only external parts. So outside look new and all. Inside still old parts. How i know? I worked there for 3 weeks. Then cannot tahan because too much fraud.
They forcefully fix the Insured Value much higher than the Market Value. Crazy!
B.N. mah
minyak masak ooo
Agree…always under market value
this is between insurance company and the workshops. wont impact us as consumer
not impact consumer tou said. who paid those premium?
What to do….fake accidents so dem a lot!!
Let me get my “Business in Malaysia” meme board. Now where did I put it…
they are just large cartels, this thing been going on forever
if theres any more corrupt sector than insurance , i havent heard of it , and in malaysia , thats saying something !
but u know what , those insurance companies are pretty powerful , not easy , with our terribly weak agencies to do anything beside bark loudly…
this is between insurance company and workshops. nothing to do with consumers..
Very soon insurance carriers can sell direct to customers without middleman
How about our broadband, TOLL and rice? Can investigate for price fixing? Can we Malaysians have anti-trust law for the benefit of the people?
Broadband is doable, but toll is based on signed contract so nope, neither is rice cuz its price controlled so why bother.
Let me guess. In the end, they found no problem. As usual, everything can settle in MY. Even rats in Giants hypermarket also still can continue business.
I have heard so much about the changes they are going to bring but when I do a quote to renew my insurance which expired next month, seem like everyone had more or less the same price. Coincidence?