Bank Negara Malaysia (BNM) yesterday announced that the public will be able to obtain motor cover from all general insurers and
their branches as well as at Pos Malaysia and its branches nationwide with immediate effect.
This immediate measure is to ensure that all motorists will obtain access to motor cover, the central bank said in a statement today.
All general insurers are committed to provide motor cover to all motorists including those ‘displaced vehicles’ which mainly comprise private vehicles exceeding 10 years old and motorcycles currently underwritten by the Malaysian Motor Insurance Pool (MMIP), BNM said.
“The motor cover may either be underwritten by the individual insurer or provided on behalf of MMIP,” it said.
Bank Negara said insurers are expected to advise the customer on whether the motor cover offered is provided by the insurer or by MMIP.
“With immediate effect ‘displaced vehicles’ will be charged the normal market premium rates and will not be subjected to the loading imposed on high risk vehicles.”
In addition, such ‘displaced vehicles’ will only be required to undergo annual roadworthiness checks at Puspakom if the vehicles are deemed to be high-risk.
Bank Negara has also prohibited insurers from compelling their customers to purchase non-motor products as a condition for the sale of a motor cover to ensure that the rights of consumers are protected.
BNM said the move will ensure that the public continue to have access to the necessary motor insurance protection while transitioning to the New Motor Cover Framework (Framework).
It said the New Framework which will take effect in January 2012 will provide a holistic solution to address the structural issues within the motor insurance and takaful sector.
The first part of the new framework involves the implementation of coordinated efficiency enhancement measures to improve the overall claims settlement process, particularly for bodily injury and death claims.
These include early and simpler claims notification, establishment of a nationwide 24-hour call centre to provide roadside assistance and the prompt and faster preparation of police and medical reports.
Meanwhile, the second part is the implementation of gradual premium adjustment over four years.
These initiatives aim to ensure that the public and businesses are able to obtain the requisite motor cover at reasonable premium, and that the motor insurance/takaful business will be sustainable in the medium and long term to continuously provide value added products and services.
For further queries or difficulties relating to the purchase of motor cover, the central bank has urged the public to contact BNM at 1-300-88-5465, or via fax at 03-2174 1515 or by sending an email to [email protected]