According to a recent survey, consumers in Malaysia want competitive pricing, guaranteed claims approval and best turnaround time for the approval of their claims following the introduction of motor insurance liberalisation from July 1.
The survey, a joint effort by AIG Malaysia and automotive website paultan.org, polled some 4,400 respondents who were aged above 18. The results showed that 89% of them want competitive pricing for their motor insurance purchase.
Besides competitive pricing, 70% want guaranteed claims approval within three business days for motor insurance claims below RM5,000. Some 60% also preferred a settlement within 60 days for vehicle claims where recovery is unsuccessful.
Additionally, 64% of respondents wanted discounts and rewards for being loyal customers, while 55% opted for flexibility to customise their motor insurance plans.
Prior to making a decision to purchase motor insurance, 86% said they would research what insurers would offer, while 16% would go for insurers with the most advanced technologies and innovation. Another 69% would choose insurers that reward good driving behavior, and 39% said they would go for insurance companies with the best reputation.
The survey also found that 42% of respondents were aware that motor insurance in Malaysia was imposed with a tariff, while a whopping 83% think motor insurance liberalisation will have an impact on their motor insurance renewal.
On the modality of motor insurance purchase, the survey found that 24% preferred to purchase their motor insurance online, while 6% favoured more traditional channels, including dealing with an agent or visiting insurance branches.
According to AIG Malaysia’s CEO Antony Lee, who is also the General Insurance Association of Malaysia (PIAM) chairman, the survey offered a clearer picture of customers’ expectations and knowledge about motor insurance.
“The impending liberalisation of the motor insurance market will bring new opportunities and challenges. It will be an incredibly open and competitive marketplace, where customers can shop around for the best deals, an attractive motor insurance premium, or the best insurance coverage for their prized cars. Insurers will need to highlight their unique strengths such as their claims capabilities to stay ahead of the curve,” he said.
On July 1, the second phase of the motor insurance liberalisation announced by Bank Negara Malaysia is set to begin, and premium rates for comprehensive motor insurance will be determined by individual insurers and Takaful operators based on a risk-based assessment system.
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All this liberalisation have no meaning when PIAM themselves cannot sort out the insurance fraud in the industry which is so rampant. Basic also PIAM cannot do but want to do all this liberalisation.
This new system will eventually raise tariffs and premiums and this is because Insurance companies cannot sort out their own fraud which they know exist.
To all the insurance companies under PIAM pls don’t pretend to be innocent. You all know damn well that every adjuster of yours is working hand in hand with the police, investigation officer and the car workshop to get kickbacks. I myself had many accidents.
Infact the last accident I had, I sent my car to my own friend workshop, he said he will repair everything for RM1000. I tried another workshop, he assessed the repair to about RM1200. I thought, nevermind, I will send for insurance claim and I can save the RM1000.
So, I sent the car to the panel workshop. After repairs and all that, out of curiosity, I simply called the insurance company up to find out how much was the bill, it was shockingly RM8000. Yes, 8x the actual amount if I had the car repaired by myself.
We all know what happens. The IO (Investigating Officer), the Adjuster, as well as the bengkel and the ulat ulat runner boys will get their kickback. Biggest kickback would be the adjuster. At least he makan few thousand for his personal pocket.
The Insurance companies know about all this. Hundreds of cases happen everday. But they close an eye. They pass the problem and burden to the consumer with higher premiums. This PIAM cannot sort, they want to do liberalisation?
This results in higher burden and premiums for the public and now, this new liberalisation, which is utter bogus.
With all this shit going on the Insurance industry dare to increase the car premiums for the motor industry every year and now, do this system which will make them more money.
That is Malaysia for you. The rakyat suffer the most because there is no proper enforcement and the insurance industry is full of cheats.
Everybody suffers when everybody along the line gets kickbacks from the police office, the police cameraman, the adjuster, the bengkel and the runner boys (ulat ulat).
The Motor Insurance Industry collected no less than RM100 billion in premiums last year. It is not fair that we public have to pay higher premiums because they cannot sort out the fraud in their own backyard.
Trust me, premiums will go up no matter what PIAM says.
Eveybody here agrees, instead of ranting here, pls go MACC if got real facts.
It’s not so easy to prove something so subjective.
Let’s say report Perodua body and paint charging RM8k+ to fix Myvi bumper. They can always produce tax invoice from previous transactions, or from different branch, to show it’s a “normal market rate”.
When everyone takes advantage blowing the cost to ridiculous level, it’s become the norm edi.
of course car reliability would be one of the consideration, that’s why i said many times, you won’t go wrong with sushi car, especially Toyota.
Sorry mate. Your babling out of topic
In that case, the industry need to regulate themselves, not gov. Unless the industry is in cahoots, of cuz, then can repot to Consumer Tribunal or something.
many have complained but NFA. Nothing is done. At most kena buang from top floor building.
So far only 2 happen and none was involved in insurance scam. R u sure what u imply?
Ok ,say yr insurance expiring in a week’s time.Due to work pressure,u have only 5 working days to pay your premium.
You finally get exhausted after finding out that,under the new system,the premiums have in fact gone up by 15 t0 35 percent.
The 15 percent fella may be cheaper but very poor in handling claims with plenty of complaints.
THe 30 percent fella offers prompt service but costs a bomb.
Anyhow,we consumers kena WHACKED LEFT,RIGHT,CENTRE.
Which gomen authority will assist u if insurers insist in jacking up your rates blindly?
Just look at the ponzi JJPTR fiasco.After 1 year,400 thousands kena whacked…finally u see someone kena LOKAP.we R NOT SAYING AUTHORITIES DONT ACT.They act,but at what speed?
You give PIAM a foot,they want a metre.
IT is never WIN WIN. It is PIAM WIN ,WE LOSE.SIMPLE.
89% opt for most competitive price? So the other 11% opt for what? Competitive means cheap or what? No explanation given..can mean the other 11% don’t want competitively priced policy..stupid or wat?
LOL ya what does the remaining 11% looking for? Perhaps a free umbrella ;-)
Cheap things are good
Who cares? I just want the cheapest rate because all of them are shit anyway. Also because I am forced to insure my car. Heck I might even go for third party if there’s a big difference because now I seldom drive my car. I would rather send the car to a proper workshop than them giving to their workshop friends doing poor butchered ketuk and spray job with old non-original OEM parts and karat body parts sprayed; by doing excessive claims on “kerosakan yang belum diketahui” in the polis report; meaning the police trafik also behind this excessive claims. Real suckers
If I’m being honest here, I think the survey is a STUPID one. Who does NOT want an insurer offering the most competitive pricing.
Maybe they should ask – Who want the “CHEAPEST” insurance with the “WIDEST” coverage. That should get close to 100% acceptance. Those who do not want, shoot them & U will get 100% acceptance. Hehehe, cheers