PIAM
Following the revision of motor insurance premium rates recently announced by Bank Negara Malaysia, the General Insurance Association of Malaysia (PIAM) today issued a statement clarifying that the revised rates represent a continuation of the New Motor Cover Framework introduced by the national bank in 2012.
Applicable only for private cars, public taxis, and express buses, the new rates will take effect from 23 February and will thus be applicable to all polices purchased or renewed from that date forward. Vehicles other than the three types mentioned above are not subject to any changes.
With the New Motor Cover Framework in place, Bank Negara plans to eventually de-regulate the motor insurance industry with the hopes that liberalization will improve overall competitiveness and efficiency. The national bank also anticipates that competition between insurers will help ensure affordable premiums for consumers in the long run.
A major change of the status quo involves an eventual move to risk-based profiling of driver and vehicle in determining future insurance rates as practiced in many developed countries. PIAM further states that the insurance industry also seeks to further promote road safety by collaborating with parties such as the Malaysian Institute of Road Safety (MIROS) and other parties to inculcate good driving behavior among all road users.
PIAM has also implemented the Accident Assist Call Centre (AACC) service to provide emergency assistance to the motoring public involved in road accidents. The 24 by 7 hotline 1300-22-11-88 offers accident towing services and attends to claims enquiries to help accident victims nationwide.
The Association advises members of the public who have any queries relating to the New Motor Cover Framework to email their enquiries to the PIAM Secretariat at pic@piam.org.my. Enquiries can also be forwarded to individual insurance companies and approved insurance agents.
PIAM is the national trade association of all licensed direct and reinsurance companies for general insurance in Malaysia. Currently, the association has 29 member companies.
