The government will not tolerate insurance companies which try to increase motor insurance premiums without justification, says Second Finance Minister Datuk Seri Johari Abdul Ghani.
He said Bank Negara Malaysia (BNM) was responsible for monitoring the situation and ensuring that insurance companies observed the liberalisation of motor insurance rates which would come into effect on July 1.
“The liberalisation introduced by Bank Negara has long-term benefits because under the current rates, however well we drive and do not have an accident, we still have to pay a high premium.
“So, the formula this time is better because as we age, drive well, never been in an accident and never made a claim, the premiums will get cheaper,” he said
Last April, BNM announced the liberalisation move which would introduce flexible rates for comprehensive motor insurance products and fire insurance and vehicle thefts.
Under the new concept of determining rates, the premiums will be set by the individual insurers and Takaful operators, based on various aspects such as age of vehicle, safety features in the vehicle, and traffic offence record.
Source: Bernama (22 May 2017)