New Motor Insurance Tariffs from 15 February 2014

WEST MALAYSIA

EAST MALAYSIA

KUALA LUMPUR, Feb 6 — Amid public grumbling, the General Insurance Association of Malaysia (PIAM) confirmed today a planned increase to motor insurance premiums, but insisted it is part of a schedule that started back in January 2012.

The increase effective this February 15 will be the third in the four-year adjustment plan, but this time will not affect certain classes of vehicles such as commercial goods carrying vehicles, taxis, and chauffeur-driven hire cars.

In addition, vehicle classes such as school buses, factory buses, stage buses, tourist buses, and hirer-driven hire cars had not had any hike in premium at all, the association said.

“The new motor cover framework has a two-prong strategy, 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,” said the statement here.

“Under the framework, premium adjustments take effect from 1 January 2012 over a period of four years … The adjustments will be small and implemented gradually in stages.”

For example, third-party cover for motorcycles of 110cc will see the premium raised by between RM1.00 and RM3.50 per year — or a maximum of 30 sen per month — during the readjustment period.

A private car with as capacity of 1,400 cc will see a premium adjustment between RM6.00 and RM34.00 per year — a maximum of RM2.80 per month — over the same period.

Meanwhile, for express buses, the premium adjustment will only affect passengers by less than 10 sen per head per trip.

News of the increase had earlier drawn complaints from Malaysians already hit by a series of price hikes starting from the new year.

Putrajaya has embarked on a series of subsidy cuts starting from September last year, which included an increase in fuel pump price, sugar, and electricity tariffs.

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