By now you should be aware that our Motor Insurance had started its liberalisation/de-tarifiication from 1 July 2017 onwards. You may ask what is motor liberalisation/de-tariffication all about?
Liberalisation of the tariff means removing the tariff structure or freeing up the fixed premium rates so that insurance companies are able to charge premiums that commensurate or correspond to the risk profile of the consumers.
On 30 June 2016, Bank Negara Malaysia announced the Phased Liberalisation of the Motor and Fire Tariffs before transitioning to a fully liberalised market.
Under the new guidelines, an insurance company will have the flexibility to charge motor premiums based on their business risk models and risk profile of the policyholders.
In the first phase, beginning from 1 July 2016, insurers will progressively offer new products to the consumers at market rates. Existing classes of insurance such as Third Party Only, Comprehensive and Third Party Fire and Theft coverage will continue to be made available to the consumers.
In the Second phase, which begins from 1 July 2017, premium rates for Comprehensive and Third Party Fire and Theft coverage will be liberalised. However, pricing for Third Party cover shall remain unchanged and be in accordance with the Motor Tariff and any gradual pricing adjustments which Bank Negara Malaysia will specify for identified vehicle classes.
The benefits of motor liberalisation are: • Wider choice of products & add on covers • Better value, fair pricing - Differentiated rates according to risk profiles • Improved underwriting & claims by the insurance companies • Inculcate good driving behaviour
To find out more on the FAQs of Phased Liberalisation of the Motor Tariffs, please click on the link below :
https://www.piam.org.my/phased-liberalisation-section/faqs-liberalisation-motor-tariff/ or access PIAM website at www.piam.org.my.
If you have any queries on Phased Liberalisation of The Motor Tariffs, you may contact our Customer Service.
Monday - Fridays 8.30am to 5.15pm
Customer Careline : (603 - 4259 8900)
Email : firstname.lastname@example.org