Car Insurance Premium increased on Feb 15, 2014

Another hike in motor tariff premiums is set to take effect on Feb 15.

It will be the third adjustment upwards under a motor cover framework introduced in 2012 enabling gradual hikes over a period of four years.

The General Insurance Association of Malaysia ( PIAM) said that for a private car of 1,400cc, the premium adjustment will be between RM6 and RM34 per year. For motorcycles of 110cc, there will be a premium increase of between RM1 and RM3.50. For express buses, the impact of the premium adjustment on passengers would be minimal at less than 10 sen per passenger per trip, PIAM said in a statement.

There is however no premium adjustment for commercial goods carrying vehicles, taxis and hired cars (chauffeur driven) for this round of adjustment. The same goes for other classes of vehicles such as school buses, factory buses, stage buses, tourist buses as well as hired cars ( hirer driven).

PIAM said the new motor cover framework was a positive step towards promoting a liberalised insurance sector with further measures taken to improve the motor insurance and claims settlement processes.

To enhance the claims settlement processes, it said various measures had been adopted by insurers such as the introduction of the Accident Assist Call Centre to provide emergency assistance to policyholders involved in road accidents.