New Auto Insurance Policy

Bank Negara Malaysia (BNM) to approve the new scheme is more secure auto insurance coverage for all types of motorcycles began in January this year, with improvements in terms of protection without the expense of consumers and auto insurance companies.

Deputy Finance Minister Datuk Dr. Hussin said under the scheme, auto insurance companies are not allowed to force or impose other conditions, including charges for additional auto insurance such as personal protection (PA) to motorcycle owners.

He said the new scheme also requires auto insurance companies to pay compensation immediately to the accident that occurred at a rate commensurate compared to previous late payment of claims.

"The Ministry recognizes consumer complaints about premium rate increases that had settled to enable motorcycle owners to cover and road tax or vehicle license.

"However, the fixed rate is controlled and monitored by the government," he said after opening a Futsal Carnival organized by the Younger Generation GiatMara Centre (PGM) Kelantan in collaboration with the Office of Youth and Sports Hall Bachok Futsal, Tangok, near here today.

Some 240 participants from 24 teams representing various government agencies and youth organizations in Highland to participate. Also present were Umno division deputy chief Datuk Dr. Ilias Husain.

Awang Adek said motorcycle owners can report to BNM premium charges if found too expensive and exceeds the level set to be investigated before appropriate action is imposed on auto insurance representatives found in violation of rules and guidelines set.

"For the protection of diversity, they should purchase more comprehensive auto insurance whether or not to claim their own personal accident or motorcycle damage claims," ​​he said.

At the same time, Awang Adek also denied claims by some parties who said the price increase for the new scheme is due to motorcycle protection auto insurance representative to deliver a distribution of profits to the Ministry of Finance.

He added that such allegations are not true and baseless slander purposely exaggerated by some people who try to vilify the government in order to achieve their political agenda. Should such matters can not be trusted by the people.

Auto Insurance Merging

Many auto auto insurance companies are expected to carry out mergers and acquisitions this year to face the competition with an international title auto auto insurance companies.

Senior Vice President of the Malaysian  Auto insurance Institute (MII) Mohd. Taipor Suhadah said, at this time, open-door policy towards foreign auto insurance company has seen many foreign companies able to compete with local companies.

In fact, he said, Bank Negara Malaysia (BNM) also allows ownership by foreign companies up to 70 percent in auto insurance companies in the country.

"Over time, the foreign auto insurance company will have total equity in the country that resulted to be more aggressive companies to allow competition become more healthy,'' he said.

He was speaking to reporters after attending the opening ceremony of the International Claims Convention 2012 here today.

The ceremony was officiated by the Deputy Governor of BNM, Donald Joshua Jaganathan.

When asked whether the local auto insurance companies meet the guidelines set by BNM, clear Taipor, local auto insurance companies have to meet the standard.

He said the rules set by the authorities followed by auto insurance companies in the country at this time.

"The auto insurance industry at this time is different and far better than 10 to 20 years ago,'' he said.

Add Taipor, during 2011 a total of RM9.93 billion of life auto insurance claims were paid, while RM6.2 billion is general auto insurance.

From RM6.2 billion in general auto insurance, about 60 percent of the motor vehicle-related auto insurance claims, he said.