insurance wm

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.

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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?