Immediate Measures to Ensure Wider Access to Motor Cover
Bank Negara Malaysia wishes to announce immediate measures to ensure that all motorists will obtain access to motor cover. With immediate effect, members of the public will be able to obtain motor cover from all general insurers and their branches as well as at Pos Malaysia and its branches nationwide. All general insurers are committed to provide motor cover to all motorists including those "displaced vehicles" which mainly comprise private vehicles exceeding 10 years old and motorcycles currently underwritten by the Malaysian Motor Insurance Pool (MMIP). The motor cover may either be underwritten by the individual insurer or provided on behalf of MMIP. Insurers are expected to advise the customer whether the motor cover offered is provided by the insurer or by MMIP.
With immediate effect "displaced vehicles" will be charged the normal market premium rates and will not be subjected to the loading imposed on high risk vehicles. In addition, such "displaced vehicles" will only be required to undergo annual roadworthiness checks at Puspakom if the vehicles are deemed to be high-risk.
In ensuring the rights of consumers are protected, Bank Negara Malaysia prohibits insurers from compelling their customers to purchase non-motor products as a condition for the sale of a motor cover.
Members of the public who have further queries or difficulties relating to the purchase of motor cover may contact Bank Negara Malaysia at :
Tel. No. : 1-300-88-5465
Fax No. : (03)2174 1515
Email : email@example.com
The immediate measures undertaken will ensure that members of the public continue to have access to the necessary motor insurance protection while transitioning to the New Motor Cover Framework (Framework). The New Framework which will take effect in January 2012 provides a holistic solution to address the structural issues within the motor insurance and takaful sector.
The New Framework comprises two parts. Firstly, it involves the implementation of coordinated efficiency enhancement measures to improve the overall claims settlement process, particularly for bodily injury and death claims. These include early and simpler claims notification, establishment of a nationwide 24-hour call centre to provide roadside assistance and the prompt and faster preparation of police and medical reports. Secondly, the implementation of gradual premium adjustment over four years. These initiatives aim to ensure that members of the public and businesses are able to obtain the requisite motor cover at reasonable premium, and that the motor insurance/takaful business will be sustainable in the medium and long term to continuously provide value added products and services.
Bank Negara Malaysia
3 May 2011