Liberalisation of comprehensive motor insurance will benefit consumers, says domestic trade minister

Liberalisation of comprehensive motor insurance will benefit consumers, says domestic trade minister

The liberalisation of motor comprehensive insurance, which kicked off on July 1, will see motorists now having to pay for their vehicle insurance premiums no longer on a fixed rate basis, but on a risk-based assessment system.

Still, vehicle owners should not be unduly worried about detariffication as the new method is set to benefit consumers more, according to domestic trade, co-operatives and consumerism (KPDNKK) minister Datuk Seri Hamzah Zainuddin.

Consumers will have more options in getting the insurance that meets their needs at better prices, and good drivers or those with who have no records of accident claims stand to benefit. “The new method allows the insurance company to impose premium charge on vehicles with risk of being involved in accident,” he was quoted in a Bernama report.

Hamzah also said with liberalisation, the government no longer controlled the rates of motor insurance premiums. “The system is set by Bank Negara Malaysia (BNM) with insurance companies, and the announcement should be well-received by consumers as it benefits them,” he said.

In the new model, the insurance premium charge will be calculated based on the sum insured and model of the vehicle, but will also take into account risk factors, including previous claim for damages.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Hidden due to lowcomment rating. Click here to see.

    Poorly-rated. Like or Dislike: Thumb up 17 Thumb down 128
    • YB Kunta Kinte on Jul 05, 2017 at 4:25 pm

      How can Government do this when it has its hand in most insurance companies?

      Government cannot be neutral as Khazanah and other GLCs have big stakes in insurance companies.

      Same with car companies too. That is why car prices are so high. Nearly all car companies are GLC owned.

      Like or Dislike: Thumb up 30 Thumb down 1
      • Longkai on Jul 05, 2017 at 4:47 pm

        Modified saga & myvi most high risk

        Like or Dislike: Thumb up 6 Thumb down 0
        • U forget higher risk is moded Alza, Axia, Viva, & all toyotas too.

          Like or Dislike: Thumb up 0 Thumb down 0
          • Best Thing is FOC on Jul 06, 2017 at 6:35 pm

            They ask: “do u remove the battery when not use the car?”

            Like or Dislike: Thumb up 1 Thumb down 0
      • Wah! U even anally-thumbdown for telling the market to play fair. I suspect u must be doing insurans sales as part time since nobody wanna even go near ur toyota junks.

        Like or Dislike: Thumb up 1 Thumb down 2
  • Isn’t this minister from the same camp that says prices of goods will be cheaper with GST and car prices will gradually become cheaper?

    Like or Dislike: Thumb up 29 Thumb down 1
    • Hidden due to lowcomment rating. Click here to see.

      Poorly-rated. Like or Dislike: Thumb up 5 Thumb down 140
    • YB Kunta Kinte on Jul 05, 2017 at 4:27 pm

      You are right. They said after GST, food prices, car prices all will go down. But opposite happened.

      Again, Malaysians will kena tipu again. Few years time, you will see, you will be paying premiums far more than now

      Like or Dislike: Thumb up 26 Thumb down 5
      • Hidden due to lowcomment rating. Click here to see.

        Poorly-rated. Like or Dislike: Thumb up 3 Thumb down 147
        • YB Kunta Kinte on Jul 05, 2017 at 6:34 pm

          another cave facts and still lying saying car prices went down after GST

          Like or Dislike: Thumb up 10 Thumb down 2
          • Wah! U so daring call PT reports as cave facts. So whatcha still doing here?

            Like or Dislike: Thumb up 2 Thumb down 1
        • basherlogic on Jul 05, 2017 at 7:14 pm

          nak tipu org konon harga kereta turun lepas GST

          Like or Dislike: Thumb up 2 Thumb down 1
        • PT also said Iriz was a game changer previously.

          Like or Dislike: Thumb up 0 Thumb down 0
  • 4G63T DSM on Jul 05, 2017 at 12:50 pm

    We’ve been told that after GST, things will get cheaper as well. :p

    His statement makes no sense. Insurance companies are making noise they are not turning “enough” profit, so how would cheaper insurance help them?

    Some (and I mean few) may get lower premiums. Most will get ding with higher premiums. Insurance companies will find a way to categorize almost everyone into higher risk.

    1. cars with less safety items – higher risk
    2. older cars (say 10 years up) – higher risk
    3. younger drivers – higher risk
    4. City dwellers – higher risk
    5. Sales people or those high mileage users – higher risk
    5. Don’t have your own secure parking lot – higher risk
    6. Popular stolen cars – higher risk
    7. Old people or those with medical condition – higher risk
    8. Had an accident or traffic ticket – higher risk
    9. Parent that lets their kids drive – higher risk
    10. Male drivers – higher risk

    You guess which category(ies) you will fall into.

    So unless you are a recent retiree, live in a kampung, drive less than 1000km/mth with a brand new ANCAP 5 star car and with no traffic offences and accidents, you would probably pay more.

    Like or Dislike: Thumb up 51 Thumb down 4
    • Hidden due to lowcomment rating. Click here to see.

      Poorly-rated. Like or Dislike: Thumb up 6 Thumb down 136
      • YB Kunta Kinte on Jul 05, 2017 at 4:43 pm

        If you like to compare with UK, then let us also have UK car prices….oh wai! oh wai!

        Like or Dislike: Thumb up 24 Thumb down 1
        • Yes. Why not oso have UK high income taxes, VAT at 20%, decrepit NHS, and the constant worry of either still in or out or forever stuck in no mans land limbo, while were at it? …Oh wai! Oh wai! Oh wai!

          Like or Dislike: Thumb up 4 Thumb down 2
        • Kinte Kurap on Jul 06, 2017 at 12:30 am

          Lets compare their mentality with ur mentality oh Kinte Kurap. Oh wai! Oh wai! Bagai langit dan bumi!

          Like or Dislike: Thumb up 1 Thumb down 0
      • alldisc on Jul 06, 2017 at 6:36 am

        Now we can see why public transport is popular in UK, right? Let’s hope for the same here soon. Now that we have grab and uber, public transport is really not a big issue anymore.

        Like or Dislike: Thumb up 0 Thumb down 0
  • xoxox on Jul 05, 2017 at 12:59 pm

    last time who said the GST will not cause the goods price,car price increase??

    Like or Dislike: Thumb up 23 Thumb down 0
  • Sound familiar… exactly the same sentence when the government want to introduce GST. End of the day, consumer pay the price

    Like or Dislike: Thumb up 21 Thumb down 0
  • yes... on Jul 05, 2017 at 1:16 pm

    Same minister that claim GST is good for you.

    Like or Dislike: Thumb up 22 Thumb down 0
  • Jayden Tan on Jul 05, 2017 at 1:31 pm

    Will benefit consumers?

    Sounds very familiar when GST was rolled out 2yrs ago. But why we only see prices going up and will never come down. More efforts were in preparation of GST related matters instead of increase in productivity or sales figures.

    Nah…. Dun believe all these BS…

    Like or Dislike: Thumb up 12 Thumb down 0
  • Let'sCartelGuysTimeToMakeMoney on Jul 05, 2017 at 1:36 pm

    Oh driving myvi ? Let’s put you in a high risk group based on the accident rate. Oh driving Kia ? Let’s put you in a high risk group because we do not have enough data. Oh driving vios ? High risk, 2 airbag. City e-spec ? 2 air bag High risk for sho. Mazda ? Sporty profile. High risk. — Let’s make sure this doesn’t happen.

    Like or Dislike: Thumb up 8 Thumb down 0
  • just renewed yesterday and no change in premium. with a small number of insurance companies in malaysia, highly likely they would just fix the premiums in the name of profitability..

    Like or Dislike: Thumb up 7 Thumb down 0
  • azrai on Jul 05, 2017 at 1:56 pm

    Remember when the deputy minister Ahmad Maslan told us GST will make our goods cheaper?

    Like or Dislike: Thumb up 12 Thumb down 0
  • kiddd on Jul 05, 2017 at 2:15 pm

    Who believed with MY minister, click dislike

    Like or Dislike: Thumb up 13 Thumb down 4
  • pondan on Jul 05, 2017 at 2:16 pm

    sounds familiar? gst reduce prices… another coconut minister

    Like or Dislike: Thumb up 10 Thumb down 0
  • Jizzz, I heard a same statement when implement GST, next!

    Like or Dislike: Thumb up 9 Thumb down 0
  • YB Kunta Kinte on Jul 05, 2017 at 2:24 pm

    All this liberalisation have no meaning when PIAM and Hamzah both cannot sort out the insurance fraud in the industry which is so rampant. Basic also PIAM and Hamzah 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. They “lose” billions. But they close an eye. They pass the problem and burden to the consumer with higher premiums. This PIAM and Hamzah 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 and Hamzah say.

    Well-loved. Like or Dislike: Thumb up 65 Thumb down 6
  • Not Toyota Fan on Jul 05, 2017 at 2:44 pm

    Only in Boleh-Land do we have comedians for Mini-stars.

    Like or Dislike: Thumb up 7 Thumb down 0
  • KenJi on Jul 05, 2017 at 3:10 pm

    Apa2 ajelah dato seri.

    Like or Dislike: Thumb up 0 Thumb down 0
  • YB Albert on Jul 05, 2017 at 3:38 pm

    This liberalisation thing will be a RIPOFF,for the poor consumers.Who will quickly come to our aid if we r unfairly loaded with LOADINGS due to questionable criteria?
    It is a load of rubbish to enrich the insurers in the name of increase in CLAIMS RATIO.
    This year alone,our medical premium shot up to rm3400 from rm2600 last year,even after the 5 yearly increase in 2016.Reason: Insurer’s claim ratio has shot up recently.
    The poor consumer is subjected to unfair trade practice.Just like the hotline to lodge complaints.Have u ever got thro?
    Paultan.org Mr.Anthony Lim….kindly send our PROTEST to the relevant menteri.You may be the victim when your car insurance is ready for renewal.Few million drivers in Malaysia…do the authorities have time to review complaints SPEEDILY before our road tax expires?
    Carlovers,be READY FOR INCREASE.Not decrease in premiums.This is shambolic.

    Like or Dislike: Thumb up 14 Thumb down 0
    • alldisc on Jul 06, 2017 at 6:43 am

      A 3 yrs old used 1.0 axia registered under your girlfriends name will give you a very low premium. Not powerful, not popular for theft, not an old car, some safety features and the driver is a female.

      Of course, when the insurans found out you are lying, they can put a rejection in your claims. So if u do consume liquor once in a while, don’t lie. Because when u drink and drive and involved in an accident, the insurance will not pay out.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Ollie on Jul 05, 2017 at 3:51 pm

    I’m OK with this, but there has to be more transparent pricing details. I can get 10 quotes but what if all the insurance cos are colluding behind the scenes and using the same risk rating? At least now I know what is the base rate, and get discounts from going direct to the insurer online or otherwise. There should be a online direct quote available, come on its 2017. Why should I need to spend time and money getting quotes from the lazy insurers??

    Like or Dislike: Thumb up 3 Thumb down 0
  • Ksatria on Jul 05, 2017 at 3:57 pm

    well..shit definitely gonna hit the fan when am going to renew my insurance end of this year..btw, am driving a 1996 Proton Satria..highest risk

    Like or Dislike: Thumb up 3 Thumb down 0
  • xoxox on Jul 05, 2017 at 4:13 pm

    What the insurance industry need is fair/transparent insurance claim.. the deviation of price of insurance claim repair vs price of self repair is way too high….i have claim once…but my deviation is around +25% of total repair cost…this is the culprit in motor insurance not driver issues

    Like or Dislike: Thumb up 3 Thumb down 0
  • Mr Suka Syukur Selalu on Jul 05, 2017 at 7:45 pm

    Last time minister say GST makes barang cheap….actually all prices went up. Make ppl miserable and nothing else.

    Minister say insurance benefits consumer now….actually will burden consumers later.

    Like or Dislike: Thumb up 0 Thumb down 0
  • drMpower on Jul 05, 2017 at 8:45 pm

    You know where this is going?

    The car scrap scheme. You saw it here first

    Like or Dislike: Thumb up 0 Thumb down 0
  • SuSi GHA on Jul 05, 2017 at 9:26 pm

    Really cheaper?

    somebody is smoking some strong stuff and the govt is being strung along by big insurance company.

    Has there any time that insurance company look after consumer interest?

    when they last increased premiums, the margin for car insurance was @ 600%; ie insurance premium is 6x higher than payout.

    That is good margin and of course, these insurance companies want more (greedy). the consumer has no choice but buy insurance or kena saman/worse..

    Govt must do independent study after 6 months to confirm it is really cheaper for consumer. If not, claim the money back and penalize the insurance companies.

    Govt must annouce the measure to do analysis for transparency or as usual the insurance companies will hoodwink us again

    Like or Dislike: Thumb up 2 Thumb down 0
  • Benefit to rakyat smace.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Benefit to rakyat smacher

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required