Consumer groups are hoping for more clarity on the new products and policies from insurance companies as the liberalisation of motor insurance starts on July 1 2017.
According to the Federation of Malaysian Consumers Associations (Fomca) secretary-general Datuk Paul Selvaraj there is still confusion among consumers over the new insurance rates.
He claims that Bank Negara and the insurance companies should better communicate with consumers as to what sort of products are being offered, the criteria, and factors in determining the premiums. Once these are made more transparent, consumers will be able to make better choices.
An unnamed insurance agent has explained that even they are still studying the new rates and that insurance companies would be in a better position to explain it.
Even the Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said insurance companies should advertise the new products they are offering. “They should create better awareness to let the public know what the new premiums and policies are,” she said and that there may be a lack of clarity on the details of the new insurance policies at this stage.
But overall, many have agreed that the move to liberalise the car insurance industry is a good move as it would help change drivers’ behaviours in the long run as insurance companies will take into account a driver’s driving history as well.
Following the liberalisation, the amount of premium you pay will be determined by risk factors such as past traffic violations and claims record, the driver’s age and gender as well as the age of the vehicle. This means that drivers with a lower risk profile enjoy lower premiums.
