Last week, we published the new 2015 motor tariff premium rates that are set to come into effect on February 23. As it did last year, the General Insurance Association of Malaysia (PIAM) has clarified that the latest revisions to the motor insurance premiums is a continuation of a four-year adjustment that began in 2012.
The tariff revision – applicable for policies purchased or renewed beginning from the scheduled date, and only for private cars, public taxis and express buses – is part of the New Motor Cover framework, which was introduced by Bank Negara Malaysia to address the structural issues within the motor insurance sector.
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.
The move could also well see potential pricing differences between insurers, as well as the emergence of ‘full service’ insurers – with higher rates, but with more perks such as complimentary tow truck service – and ‘budget no-frills’ insurers.
Motor insurance is of course the dominant business line for general insurers in Malaysia, registering a steady 5.4% growth for 2014. The industry paid out RM5.04 billion in motor insurance claims last year.
You can compare the new 2015 motor tariff premium rates in the tables seen here with that of the existing rates from 2014, which remain in effect until this Sunday. Below is the PIAM statement on the motor insurance premium adjustment.
The General Insurance Association of Malaysia (PIAM) wishes to clarify that the latest revision to Motor Insurance Premium is a continuation of Motor Tariff premium rate adjustments under the New Motor Cover Framework introduced in 2012.
The New Motor Cover Framework was introduced by Bank Negara Malaysia to address the structural issues within the motor insurance sector, 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.
The adjustments on Motor Tariff premium rates for 2015 will take effect from 23 February. These adjustment were announced by Bank Negara Malaysia in early February 2015 and will be applicable for policies purchased or renewed beginning 23 February 2015. The revisions are only applicable to private cars, public taxis and express buses. The rates for other types of vehicles remain the same.
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. Moving forward the industry will play a more active role in improving road safety by working jointly with MIROS and other stakeholders to inculcate good driving behavior and practices among all road users.
PIAM has also implemented the Accident Assist Call Centre (AACC) service to provide emergency assistance to the motoring public involved in road accidents. The 24 by 7 hotline 1300-22-11-88 offers accident towing services and attends to claims enquiries to help accident victims nationwide.
Better renew your motor insurance before 23 February, then?
Looking to sell your car? Sell it with Carro.
It was claim steady growth … but still increase the tariff….greedy!
Not include GST? No word.。。。
“The premium is subject to an additional 6% GST in accordance with Goods and Services Act 2014 with effect from 1 April 2015 and Stamp Duty RM10.”
U will soon see this clause updated in your policy jacket. The insurers will send you an official letter to affected policy holder.
Malaysians get screwed everyday, everywhere, everytime…..
In other words, Malaysian having endless possibilities of getting screwed
We do get sodomised in every hole there is…!
If it was small businesses that increase the price, our menteris will go and make pc telling them to think of the rakyat…but if it is big corporations, they will justified it by saying the costs of operations is increasing yada..yada..or they just keep their mout shut….
Insurance companies are like the third row of white collar gangsters. The first are the Telcos, second the Banksters and then there is this Insurance. No one is controlling their scam and customers dont really have a choice. They work in close knight syndicate with Tauke Ayam (BNM) and Bapak Ah Long (Government). You can’t under insure your car, but they can pay you below insured sum – because it’s “the policy”.
Apart from “policy” here’s some other terms they commonly shove down your throat to deny you of your entitlement; “depreciation”, “betterment”, “market value”, – which they don’t tell you when you have to pay-up for the premium. Now that our Bapak Ah Long is busy mudslinging, other companies like TNB and SYABAS are also attempting to follow the good example of the latter three.
When comes to customer service standards, all of them are just utter crap. You play a game of push button with a voice machine – no human being will attend to you.
This is worth doing some programming analysis. I used Tokio Marine’s calculator to back-test my recent car insurance payment of RM 498.67. I also managed to access the JavaScript programming behind its calculation script.
Might be helpful when it comes to determining how much you might have to pay for your car insurance.
Is anyone interested in the calculation steps?
i m interested. at least i know what i m paying for