Right now when you renew your motor insurance, 10% of the fee you are paying actually goes to the insurance agent as commission. From the 1st of July 2009 onwards, you could potentially save on this 10% fee by buying your motor insurance from insurance companies directly.
Insurance companies will have to offer mandatory rebates to customers who buy insurance directly such as through the Internet, telemarketing, direct mailing, or walk-in customers. If you are a new customer you will be entitled to a 5% rebate, and from the 2nd year renewing with that company onwards, you’ll get a 10% rebate.
There are already plenty of insurance companies selling insurance online such as ETiQA. But while this move will benefit consumers who are aware of this and know how to go directly to the insurance companies, many insurance agents would have lost a source of annual income, as the same person usually goes back to a certain agent every year for his motor insurance needs.
Looking to sell your car? Sell it with Carro.
the 10% will top up on our ncb?
or after ncb deduction?
10% means after NCB deduction or before?
after NCB
d 10% is the agent commissions.
if total premium payable is RM500.00, with this 10% discount, you only pay RM450.00
yes correct, 10% of the final amount after NCB and all is deducted.
No need to go thru internet, just befriend with the insurance agent and you'll get that 10% off!
While this might be good news for some, I have never trusted insurance companies.
There are now insurance companies that are mandating that for 3rd party coverage, "forcing" buyers to "value add" and buy some sort of life insurance/medical insurance with them before they will sell you any Third party insurance.
Granted, they are not making much from me with me on 3rd party, but that is my choice to accept more risk for lower premiums.
To me thats pretty unscrupulous and unconstitutional. And there is definitely a collusion between the insurance companies "to make more money".
On one hand, we are mandated by law to have insurance, but the law (or lawlessness) does not protect the consumers which they should be working for.
I heard no mention about this before, perhaps everyone still has big loan payments on expensive cars so they dont use 3rd party . ;p
yeah, good. Time to wipe out this non-contributing group
Why can't they just sell at net premium at the first place? In London you get to choose the best deal you can get, packages like weekend driving also available
and they have different price and coverage from one to another. Over here, when you ask for quote, it is more or less same with no more than RM50 differences. And the insurer over here are so conservative and dare not try for different packages, they only know to take conventional insurance coverage and ask for premium raise at the same time.
Plus they don't really dare taking any coverage for your expensive bodykit, sportrims and etc exterior. Not to mention, you have to pay extra for flood, tree falls, typhoon and etc.
Back to insurance agent, if the insurance guy is so helpful, to claim the motor certificate from financier, to pay, and to renew the roadtax, that RM50 spend is worth more than the time spend here and there, plus your leave which could cost more than that… This news only beneficial for owners of car worth RM150K and above.
Time to wipe out non-contributing group ? who is helping you to lodge accident claim ? who will give you 1st hand information on insurance update ? who will give you advice when you meet with accident ? Who will deliver your road tax & insurance to your door step ? This is Insurance agent service !!! Insurance agent does not take it for granted ! We take your commission and we deliver service !!!
I used CIMB AVIVA TAKAFUL BERHAD before, when I sell my car and sent them a letter to request a balance refund…never received!. My other car use ETIQA, after sell my car…same procedure…but I received refund RM400…and currently I use ETiQA
Good for consumer but real bad for agents in the business. In a few years time, they will be obsolete. I've heard that agents are trying to stop this from happening. In anything that is new, certain party will profit from it no doubt.
Good good …. those who want to pay less but do a bit more hassle … try the teleservice … it's simple actually you know … it's delivered to your doorstep as well …those who want total convenience ..get the agent service but pay more … options are there …please choose …. of course agents are crying foul coz their income is jeopardized …hey you've got to evolve man ! Change is the name of the game …similar to any other service industry..
I already bought insurance policy for my car directly from the company. the advantage is we get the policy on the spot, instead of those cover note by the agent. I see many will lost their job after this. So next year I'm entitled to their 10% discount. So it's quite convenient because my NCD already at 55% peak. but if your NCD lesser it will be a large reduction with 10% discount.
Just renew my insurans @ Etiqa via internet.Kind of simple and easy.
3% off thru Autow**ld as agent.
RM50 is not a lot, i maybe still go to my agent.
unless everything can done by internet.
wow, maybe some agents will be drastically affected if their base of operation is with those tech savvy since they can just use the internet.
elsewhere, the 50 bucks may be treated as a service for the agent to update and consolidate all information to the buyer.
Good move by PIAM. This way the consumer is given the choice of going direct or engaging an agent.
I don't see agents losing their income. I see that the role of agents will evolve from seller to service provider. If they currently make money from selling, now they can make money from value-added services such as making claims, renewing roadtax, settling summonses, assisting clients who are involved in accidents etc.
People's time are too valuable to be wasted by running around doing tasks which can be done more efficiently by a professional. Although roadtax and insurance can now be done online, many consumers are still not internet savvy and prefer to engage someone else to do it for them.
At the end of the day, the choice should be left to the consumer.
Now, I wish such initiative should also include life insurance and unit trust.
ok..off topic..
Based on the pic how much usain bolt can claim for his wrecked m3?
Well,I'm an insurance agent myself and most of my biz are from motor insurance. If this really happens, I think i will be jobless soon. Economy already not good, and now our goverment is helping us full time agent on how to be jobless.
We insurance agent don't take your 10% so easily. I have to send letter to remind my clients their road tax/insurance will expired soon 1month ahead, i renew their insurance and help them pay their road tax and deliver it to their doorstep. FYI, there is 14 days Cash Before Cover (CBC) means after u open the covernote, u must pay the premium within 14 working days. Some clients will owe us the insurance premium more than that and we have to pay for the client first. Any claim, we insurance agent do all the paperwork and fill up all the necessary form, client just sign. We also help make sure he client get their claim cheque ASAP too. If buyer go direct to insurance company, go fill up your own form. go and check yourself from time to time the insurance company process your claim or not.
Cars after 15 years hard to buy insurance, go direct also cannot get insurance even u have the money. Like my client got a 19 years Mini. go Etiqa, tak mahu buat, go kurnia, tak makan kereta lebih 15 tahun, go another company must buy minimum RM10,000 comprehensive cover still kena loading 15% n finally back to me, 15 mins siap and can go pay road tax.so who help you get third party insurance?? how come i can get my client TP insurance? it's also because we are close to the people inside. You guys think the 10% commision so easy to earn kah? Midnight accident, who help you arrange tow truck? the insurance company just give u a toll fee number and you call youself and arrange yourself. who teman you go police station make report? you buy direct, u go report yourself.
There is actually many things like us agent do for our client. we give them Value added service, 24/7… anything tak faham, sunday also can call us. if go direct, sorry la, we are close on saturday and sunday. please call back on monday. Some clients really do call on sunday to enquire bout insurance..
Really don't understand.I think i will need to be prepared to be jobless soon.
Depends really on:
a) if you got the time
b) if you really care about 10%
My insrance agent takes care of my roadtax as well. Comes to the house for the documentation and giving back the items. So I don't really have to go anywhere and waste time. If your car is on 3rd party insurance of lets say Rm 100. 10%=rm10. Basically he does everything with me relaxing and just "sign here".
That RM 10 = you have to spend time at JPJ, fill in formsforms, go to JPJ use fuel to get there and go back, park and pay parking ticket.
If anyone has been to JPJ's you know that its customer unfriendly. Most of the people there are agents, runners etc. Only a small amount are personal owners.
So now, is it worth it?
Last time I cannot do additional coverage (flood etc) with that online thing and via Post Office. I still have to go to an agent.
Furthermore, my car would be more than 10 yrs old this year.
So I will still use agents.
No problems.
Well, actually i know about since early of April…
PIAM memo in my hand since 1st week of May…
There are PRO and CON for this issue
1) Lots of partimer agent will automatically out of this industrial..Too many monks in this industrial, so after take out this part-timers and non productive agent, then only the full timer agent can survive…
2) Then left the knowledgeble and skills full timer agent will survive, because only those equip with this kind of skills then only can provide the professional service to their client…
3) Not all of the insured hv the time for direct walk in… Fuel+Time are just too costly for those who stay at big city….Which u might need to rush to bank to request the Registration card(RC) then go to Ins company then JPJ or Puspakom or Myeg then after this return back the RC to the bank… SO not worth…
I had call up my full timer agents, car dealer to attend an extensive training under my supervision… In order to face this challenge days which will coming soon….
CON :
1) If u r an insured without Motor Ins knowledge and understanding, while u are in accident, who will backup and serve u at anytime, even midnight as well….? So u gain back the 10% rebate, the price for you pay for it will be, YOU SERVE YOURSELF when come to claim matters… Which you might need to rush to the ins company to pick up the claim form(if needed), submit the documents( after filled up)….
So think twice b4, you get HURT….. Agent are there to assist you…
p/s: I am not an agent, i am General Ins Marketer(Ex-Kurnia) now at XXXXXX… Secret….
I am sure there will be many who see the benefits of having an agent backing them up whenever they have to make claims so I feel safe to say that there will be many who will just continue going with agents.
We are wrong actually on accident claim matters. Most of the agent doing nothing. They only sell the policy (which what we receive at first place is only cover note valid for 14 days). When accident do happened (may god forbid), the one who really busy is the panel workshop operator, not the insurance agent. So the 10% comm is too high for them. If you own a lancer GT, imagine the policy is RM3k++, so RM300++ save on this. If you want to make a claim, feel freely to contact directly to the insurance company. it is hassle free. Moreover, panel workshops are afraid if the insurance company know they are late in doing their job.
[quote comment="239812"]I am sure there will be many who see the benefits of having an agent backing them up whenever they have to make claims so I feel safe to say that there will be many who will just continue going with agents.[/quote]
Thanks Paul.. All the while i am your reader, this is the 1st time i put up some comment about this… Because i knew it since early of April and look into it to in order to protect those great agent rice bowl….
Guys don be too happy about this.. I think some of you did experienced b4, that certain Bancassurance keep on approaching u to buy MOtor Ins with them while no rebate at the same time( they earned back the comm) while when come to claim matters, you return back to the Bank counter, then they start act like Tai Chi master pushing away the responsibility to serve you….
That is why, soon they need to pay the price for their own bad reputation…..
Agents will always be around. However, this will be weeding the bad from the good ones.
A good agent is a good service provider. A good service provider will always have customers.
The way I look at it, its more on 'motivating the agents'…
Which is good…
this is generally good for consumer..if u choose to go direct, then u save 10%..if u still want to go through agent, then business as usual..nth to lose..only insurance agents will be at the losing end..
i'll still stick with my agent..btw, he's a full time agent..never trust a part-time agent..coz part-time agent only sell, but dunno how to service as they have other stuff to take care of..full time agents are more service oriented, as that's their rice-bowl..and full time agents are more profesional and they know more about the procedures, etc.
i always go direct to the insurance co. When my car invoved in acc. , my panel workshop does all the claim. I just sign the form. After two week i can take back my car
If u want to renew your insurance dont buy AIG, now there impose 10-15% loading to those age below 30, After thier parents company making heavy losess now the jews r sucking our money.
To Bank Negara how about 35%commission life agent earn, when can we get the rebate???
Ah beng why scare liberations?
[quote comment="240001"]The way I look at it, its more on 'motivating the agents'…
Which is good…[/quote]
agree!
cheers!
Great, i'll instantly out of job literally. As i'm a part-time insurance agent now, while thinking of quit day job to become full-time general insurance agent have to re-consider again.
Commission already miserable, yet now direct-buyer can get full 10% rebate over counter, i reckon market will have a lot of 'part-time-agent-soon-turning-full-time-agent' stop our turning action, bcoz we just cannot survive without commission.
No doubt, the market is open and choice should be given to consumers. But why rebate so drastically at 10%, not that we are earning a lot at 35-45% commission?? The insurance company should now increase our commission stake. Or else, when there are too little agents around, they also facing nobody to service their customers. PLS dun tell me they will hire someone to do the job -> this act is pushing us agent off the cliff…
Bad market, bad time, bad income…
[quote comment="239736"]Well,I'm an insurance agent myself and most of my biz are from motor insurance. If this really happens, I think i will be jobless soon. Economy already not good, and now our goverment is helping us full time agent on how to be jobless.
We insurance agent don't take your 10% so easily. I have to send letter to remind my clients their road tax/insurance will expired soon 1month ahead, i renew their insurance and help them pay their road tax and deliver it to their doorstep. FYI, there is 14 days Cash Before Cover (CBC) means after u open the covernote, u must pay the premium within 14 working days. Some clients will owe us the insurance premium more than that and we have to pay for the client first. Any claim, we insurance agent do all the paperwork and fill up all the necessary form, client just sign. We also help make sure he client get their claim cheque ASAP too. If buyer go direct to insurance company, go fill up your own form. go and check yourself from time to time the insurance company process your claim or not.
Cars after 15 years hard to buy insurance, go direct also cannot get insurance even u have the money. Like my client got a 19 years Mini. go Etiqa, tak mahu buat, go kurnia, tak makan kereta lebih 15 tahun, go another company must buy minimum RM10,000 comprehensive cover still kena loading 15% n finally back to me, 15 mins siap and can go pay road tax.so who help you get third party insurance?? how come i can get my client TP insurance? it's also because we are close to the people inside. You guys think the 10% commision so easy to earn kah? Midnight accident, who help you arrange tow truck? the insurance company just give u a toll fee number and you call youself and arrange yourself. who teman you go police station make report? you buy direct, u go report yourself.
There is actually many things like us agent do for our client. we give them Value added service, 24/7… anything tak faham, sunday also can call us. if go direct, sorry la, we are close on saturday and sunday. please call back on monday. Some clients really do call on sunday to enquire bout insurance..
Really don't understand.I think i will need to be prepared to be jobless soon.[/quote]
Ya! i totaly support what u say bro !!! Like agent of us mati la …
what 4 become insurance agent n how to maintain agent premium yearly target ?
Look at what agent are doing and look at what politician are doing?
i am a full time general ins agent and i do strongly disagree with this scheme… common man… there are 40k agents in the country and at least 15k of them are full time agent like me…
I am also strongly not agree to this move.. think myself will be losing some of the clients if they read this.. lol. jk.
For me i think as an agent the value added services that you will be able to provide will actually bind your customer to you so this is not a big deal But it is for those agent that only sell policy and then just disappear when their client in need. Plus most of agent out there who is making huge bucks just sell motor as a secondary services while focusing more on life product like investment linked,whole life etc…