Effective January 16, the motor tariff premium rates in the country are set to be revised on a gradual basis, according to a Bernama report. Bank Negara Malaysia (BNM), which issued a statement on the matter, said that the revision will be the first to be carried out in over three decades, adding that the premium adjustment was to be in a small amount and implemented over a period of four years.
For example, third-party cover on motorcycles of 110 cc will experience a premium increase of between RM1 to RM3.50 per year over the next four years. For a private car of 1,400 cc, the premium adjustment will be between RM6 to RM34 per year over the same period.
As for commercial vehicles such as outstation taxis and buses, the impact of the premium adjustment on the passengers will be minimal, at less than 10 sen per passenger per trip.
The tariff revision is part of the New Motor Cover Framework, which addresses the structural issues within the motor insurance and takaful sector. The framework also involves an immediate implementation of critical measures to enhance efficiency in claims settlement.
The central bank said that the adjustment in the tariff is to be reviewed periodically in order to ensure that the adjusted premium rates continue to be reflective of the claims experience, and assured that the implication on the public and businesses will be marginal.
It stated that the current tariffs, which have not been revised for more than 30 years, have been a major source of difficulties faced by the public in recent years – while premiums have not been adjusted, there has been a significant increase in the level of car ownership to about 19 million to date, and with it, a corresponding accident rate and claims. The enhancements will significantly reduce the average claims settlement period to six to 18 months from the present one to five years.
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 and fairer to vehicle owners, as those with good claims experience will enjoy much better premium rates than those with a higher risk profile, BNM added.
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Tiap-tiap tahun insuran naik. Coverage pulak tiap-tiap tahun turun.
Macam la hari-hari orang claim insuran. Tiap-tiap bulan, ribu-ribu kenderaan
baru didaftar. Tak cukup lagi ke syarikat insuran ni buat untung?
Mana nak cukup – kete damage dalam 3K, kedai repair claim dalam 10K. Dah Malaysia ni byk sgt penipu nk buat macma mana – org yang jujurla kena byr!
“Damage leh Claim 3k dlm sejam” PENIPU……. aku p KURNIA utk claim, diaorg bg aku 1.2k jer.. aku x jadi ambil, hantar p bengkel kereta, diaorg claim 7k dpt pula…. CELAK betul KURNIA… aku yg byr … org lain pula yg senang2… GOOD BYE KURNIA….
what the heck!!!!! this life suck! everything gone up nowadays……………….. urgh….
Thank you Government for this wonderful news. Now I dont have to wonder anymore where to throw away my hard earn money.
Is this part of the plan to become high earning nation? by spend more
LOL –> maybe after this they will crate 1Malaysia insurance with 50% discount.
1Malaysia insurance with 50% discount <<< very-very good idea…soon, najib will contact u…hahahha
Even though the tariffs/premiums has not been revised for quite a while, the insurance companies has been rampantly charging “loading” fees that sometimes can be as high as 100% of the premium. No reasons given on what the “loading” is for; and consumers having no choice, have to pay exorbitant fees. The government has not done anything about it…
the goverment is doing something. they’re giving RM500 to people to pay the loading fees. insurance company should just charge a flat rate loading fee of RM500 to everyone.
see what happen in next PRU..
Macam ni la bagus. Sapa yang bawak kereta macam pariah kena bayar lebih. Sapa yang bawak ikut undang-undang bayar kurang. Saya sokong.
xsemestinya mcm tu. ada gak yg pkai kancil tp bwk mcm setan
While it may sound good for some of us and bad for the rest…
It still does not address the various loopholes that seem to protect the collision repair industry and the loss adjustors who rob vehicles owners and insurance companies through bloated loss adjustment reports and claims which most of the time deprive affected vehicles owners from genuine parts and good workmanship.
In the end… in the event of a collision, who protects the owners’ rights? The question remains.
better fix the road first
yeaaaa….at the end of this year…all insurans companies can give more bonuses to employees….
Not all experience increase in premiums.
Calculators reflecting the new rates are now available at insuranceinfo.com.my and Islamicfinanceinfo.com.my
Try it out and link to your site.