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Sunday, January 25, 2009

WHY IS IT VERY HARD TO RENEW MOTOR INSURANCE (THIRD PARTY LIABILITY) IN 2009?

The answer for the question above is very simple. Many general insurance companies suffer from loss due to a continuous fall in average motor premium while the insurers suffer from higher-than-expected claims ratio.

In order to overcome this problem, the insurers have to adopt more stringent underwriting controls on motor insurance including the application of premium loadings. As a result, the renewal and availability of motor insurance in 2009 will be significantly affected.

However, fortunately, motor vehicle owners who find difficulty in obtaining or renewing their motor cover can turn to the Malaysian Motor Insurance Pool (MMIP) to obtain motor insurance protection for their vehicles.

For details, please click the following links:

2 comments:

  1. Congratulations to you! I think your claim record is very good or your car is still new. Other private car owners may not be as lucky as you are.

    There are quite a lot of people who can't renew their third party motor insurance because their cars are already old (more than 10 or 15 years). There is no problem for those who have bought comprehensive coverage for their cars for many years. Recently, even lorry drivers face the same problem because some general insurance companies think that the risk is too high.

    For AIG General Insurance (Malaysia) Berhad, there is a loading (extra premium) of 15 % for new policyholders of private car insurance who are under 30 years old. However, this loading doesn’t apply to the existing customers who are under 30 years old.

    These situations show us that it is not easy to renew our motor insurance especially for those whose cars are very old and who have bought third party motor insurance for many years.

    If they can renew their motor insurance, there must be some a condition like buying a personal accident plan from the general insurance companies. If they don’t accept the condition required, they have to find other general insurance companies.

    ReplyDelete

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