The Motor Insurance sector in Malaysia will be shaken up quite a bit in the next few months as Bank Negara Malaysia (BNM) recently confirmed that in its Financial Stability and Payment Systems Report 2015 (released back in March 2016) that motor and fire insurance premiums will soon be based on a list of risk factors and not regulated by current pricing policy
The transition will happen gradually and the first phase just kicked off this month, 1 July 2016. So the insurance industry is allowed offer new products with optional add-on covers and the prices will not be regulated. It will also be determined by the market and will allow insurance providers to ‘open price’ to these products as they see fit.
In simple words, your premium rates for car insurance will be based on what car you’re driving and your driving experience. If you just got your driving license and you’re driving a BMW, you could have to pay higher premium than the slow-driving Uncle who drives the same model vehicle. So premium prices may vary across different insurance providers.
This is indeed good news to consumers and car owners. It’s also a good opportunity for insurance providers to push out new products that may benefit certain car owners. In short, it’s a win-win situation for all.
Now the only problem we could be facing as a car owner is the vast option that we will get from all these insurance providers. So how can we get the best and know how to getcover on all these choices? We’ll find out soon enough I guess.