The General Insurance Association of Malaysia (PIAM), the national trade association representing all insurers in the country, today revealed figures for the first half of 2017.
It reported that the general insurance industry declined 1.9% in 1H 2017 compared to the same period last year. Gross written premium income was RM9.17 billion, down 1.9% from the RM9.34 billion recorded in the first half of 2016.
Motor insurance again had the largest slice of the pie at 45.8%, with premiums totalling RM4.19 billion, a 1.8% increase from the first six months of last year. It remains well ahead of the next largest class, that of fire insurance, which racked up RM1.79 billion (a 2.4% increase year-on year).
In terms of insurance claims, PIAM said the industry continued to experience a deteriorating trend, with the overall net claims incurred ratio climbing from 53.8% in 1H 2016 to 57.4% for the first six months of 2017. That for motor insurance was at 71.4%, up from the 65% for the corresponding period in 2016.
Motor insurance claims paid out by insurers amounted to RM2.68 billion in 1H 2017, and this works out to RM14.7 million per day in claims for property damage (own vehicle, other party’s vehicle), bodily injury and vehicle theft. The rate for the first half of this year is higher than the RM13.8 million per day rate recorded for 2016.
In terms of motor vehicle theft, there was an improvement this year, with a 25% decrease in vehicle thefts. The total number of stolen vehicles in all classes amounted to 7,897, a drop from the 10,551 from the same period last year.
Of these, 2,925 were cars (4,026 for 1H 2016), 4,546 were motorcycles (5,782) and 426 were commercial vehicles (743), a reduction of 27%, 21% and 43% respectively.
The association also revealed the top 10 most stolen vehicle models (with reported cases) for the first half of 2017, with the Proton Wira topping the list like it did in the first half of 2016, though less units were stolen this year, at 338 to the 498 recorded last year.
Next was the Toyota Hilux, with 286 vehicles of the type stolen in 2017. That theft rate is less than the same period in 2016, when 378 such pick-ups went missing. In terms of percentage, that’s a 24% reduction.
Other popular models on the hit list are the Perodua Kancil and Myvi, and four more Proton models, the Iswara, Saga, Waja and Satria. Rounding off the list is the popular trade vehicle, the Nissan Vanette and the Honda Civic.
At the media briefing today, PIAM also disclosed the number of reported stolen vehicles that were repatriated from Thailand and Singapore from 2012 to August this year, at 188 and 24 units from each country respectively.
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All this liberalisation and claims increase have no meaning when PIAM cannot sort out the insurance fraud in the industry which is so rampant.
Basic also PIAM cannot do but want to come here and show increase of claims.
Now they say higher claims and after this for sure they will 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 now, they say claims have climbed
This results in higher burden and premiums for the public and now, cry baby about higher claims per day 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 liberalisation 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 now that PIAM said claims have climbed up
Malaysia car insurance prices is the cheapest in the world. This is because Government cares for us and subsidizes our insurance prices to keep it low. Behind the scenes, Government is subsidizing our car insurance to help the rakyat.
Let us be grateful and not complain. If not for this subsidy, car insurance will be double the price
Topkek troll of 2017 award >>> Behind the scenes, Government is subsidizing our car insurance to help the rakyat.
pls explain to us….where is the subsidi?
Everyone is fed up with his lies…OMG Subsidy???
Fully agreed with you. It is full of corruption to the core. All are part of the syndicates and cartels until PDRM level
Like basher said, make them wash toilet for 100hrs each offence, or just put them into gibbets and hang em over the waiting platforms for 10hrs.
RM jatuh, harge spare parts shoot up. Deswai RM14.7 juta per day.
Why RM jatuh? Cause the answer is nobody want to invest in Ringgit or Malaysia anymore
Malaysia’s economy robust grew at 5.8% !
Nope. “ringgit-rises-to-three-week-high-vs-us-dollar/”
We cant stay stuck in cave forever, need to come out and compete with the world. Oh wait, we cant but u pretty much welcomed to remain there.
pls show us how our car insurance is the cheapest in the world and got gomen subsidi
I have repaired by car with panel worksyops before. Outside assess RM3000. Worksyop charge insurance company RM12000
5X 5X 5X 5X 5X
Wow authorised workshops manyak untung Lol
I believe the wira’s are not stolen but made to ‘disappear’ cause the claims money is more than the value of the car!
And these people fail to see that!
is there is no pakat from whoever to whoever and make this claim, how can this be happening?
its obvious thats why tons of wira abundant in all taman taman roadside, and no one care to recover them..
But never see any abandoned Toyota, Power of RV !
Many looking Putra parts.
Yeah yeah. Next u say them 508 owners stole their own cars.
John seems to be very concerned about French cars…i bet he owns a French make and regrets he ever owned it….and on top of it all, he cant make his French car disappear cause he’ll have to top up the loan difference…regrets, regrets, regrets!!
the French model was really tempting at 1st sight though
he knows so much abt Pijot. Sad owner who cannot sell his car anymore
No, never had one althou a fren has. When I go for conti, I went straight for the best.
Tristar > all
Power of dreaming..
Say it to my E keras
finally, something Protong top in local auto industries..
too much corruption at all level in motor insurance industry…. MACC should starts investigate each company from top to bottom…. not forgetting life insurance… every years their premium increase… it’s unbelievable!
Err, life insurance memang pun increase every year cuz ur that much closer to cashing out that policy. Unless ur the kinda pipu that dun belip in life insurance and buying safer cars.
something tells me the insurance premium gonna go up…..bad news for car owners…..
typical insurance companies, big promises when asking you to sign up, but will find 1000 ways to not pay once you try and claim.
bunch of crooks