A Personal Finance Blog for Malaysian: Help for vehicle owners who can’t get coverage

Wednesday, December 8, 2010

Help for vehicle owners who can’t get coverage

WE REFER to a letter “Retirees heading towards a dead end” (The Star, June 28) regarding the move by motor insurance companies to stop providing third party insurance coverage to cars that are over 20 years old.
General insurance companies have been suffering from high motor claim losses with the claim ratio exceeding 100% in four of the last five years for the overall motor portfolio.

Third-party bodily injury claims, in particular, which have exceeded 100% loss ratio for many years, skyrocketed to 288% in 2008 and to 292% in 2009.

These were largely due to various factors including increase in vehicle thefts and road accidents.

As such, insurers are adopting more stringent underwriting controls on motor insurance including premium loadings and acceptance of renewal and new business, especially involving third party insurance.

Insurance companies do exercise their options in the acceptance or renewal of business based on their internal underwriting guidelines.

Motor vehicle owners who face difficulties in obtaining motor insurance coverage for their vehicles may approach the Malaysian Motor Insurance Pool (MMIP) for their insurance requirements.

The MMlP was formed in 1992 by the general insurance industry to ensure the availability of motor insurance for vehicles facing difficulties or are unable to obtain insurance coverage.

For the convenience of the public, MMIP insurance coverage can be obtained at Pos Malaysia outlets nationwide since July 2009.

Executive Director,
General Insurance Association of Malaysia.

Source: The Star

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