Getting Motor Insurance For An Old Car
So you’ve got a beat-up old car whose age is way older than your kids in kindergarten, and while you’re itching to get a new vehicle, this old baby here contains traces of memorabilia which you’d like to keep.
Now, most insurance companies are less keen on insuring old cars, especially those which are no longer under a hire purchase arrangement. One – it’s because old cars are perceived to be high-risk and are more accident-prone. Hence, insuring them would contribute less to the profit margins of the insurers. Two – it’s due to the difficulty in valuing and reinstating old vehicles.
So what do you do?
Malaysian Motor Insurance Pool (MMIP)
Here is where the Malaysian Motor Insurance Pool (MMIP) comes in. It is a high-risk special purpose entity set-up and operated collectively by all general insurance companies operating in Malaysia. This particular body will insure those unable to obtain motor insurance cover in the market. The pool was established in 1992 and is currently managed by MMIP Services Sdn Bhd (MSSB), a subsidiary of MNRB Holdings Bhd (MNRB).
There are two ways to go about applying for an MMIP policy. The first option is to go to either of the two Servicing Insurers – Uni.Asia General Insurance Bhd or Multi-Purpose Insurance Bhd. The second option is through any of the Pos Malaysia Bhd outlets in Malaysia.
MMIP in general offers both third-party and comprehensive motor insurance packages. Nonetheless, a comprehensive coverage is only available for vehicles with existing Hire Purchase Loans. Though the two Servicing Insurers provide policies for all kinds of vehicles, Pos Malaysia is limited only to motor cycles, private cars, town/public taxis, factory buses, stage buses and school buses.
The main exclusions under the MMIP motor insurance cover are vehicles on rails, vehicles not running solely on roads, racing or speed-testing vehicles and liability for goods carried in vehicles.
Applying For An MMIP Policy
To apply for an MMIP policy, simply refer to the two Servicing Insurers (i.e. Uni.Asia General Insurance Bhd or Multi Purpose Insurance Bhd) and submit your documents to either firm. For those who prefer to apply through Pos Malaysia, please check the address of the Servicing Insurer noted on the Policy Schedule and submit your documents to either the two insurers selected by you.
Below is a list of the general documents needed to apply for an MMIP policy:
A) Required Documents:
- The Original Policy or Renewal Notice of the previous insurance
- The original copy of the Vehicle Registration Card (both sides)
- A copy of the Owner’s NRIC (both sides)
- A fully completed Proposal Form (this is required for every new or renewal policy)
B) Additional Documents:
i) For Trade Plate:
- The original copy of the trade plate disc
ii) For Commercial Vehicle:
- A copy of the permit (if any)
- A copy of the vehicle inspection report (from Puspakom)
Note that a standard report from Puspakom lasts only for about six months from the date of issuance or until an ill-fated accident has occurred, whichever one is earlier. Once your Puspakom reaches its date of expiry, you will need to complete another inspection to prove the road-worthiness of your vehicle. However, keep in mind that a complete Puspakom report does not fully guarantee the insured vehicle. MMIP still has the right to reject any claims arising out of or due to mechanical defaults or wear and tear of the vehicle. This means that the policyholder would still have to bear the costs from the accident regardless.
iii) For Company-Owned Vehicle:
- The Company’s rubber-stamps
iv) For Non-Commercial Vehicles That Are Above 10 Years Of Age:
- A Puspakom inspection report or alternatively a report from any of the MMIP’s panel adjusters proving the road-worthiness of the insured vehicle
v) For Insured Above 65 Years Old:
- The original copy of the insured’s medical report to certify that he or she is fit to drive
Payment Of Policy
Payments must be made before a motor policy can be processed effectively. Policyholders can make their payments via cash of cheque.
Note that MMIP premiums are more expensive than the ones quoted by a single insurance firm. This is because MMIP acts as a ‘last resort’ party which is formed to protect drivers who own ‘high-risk’ vehicles. They provide coverage to those whose vehicles would not be underwritten by any other single insurance company and henceforth imposes a higher loading which reflects the higher risk involved in the procedure.
Feeling ready to get your car insured? Why not compare the car insurance in Malaysia with our car insurance calculator?