KUALA LUMPUR: Low-risk drivers will benefit from the newly-liberalised motor insurance tariff with lower premiums and incentives, the Dewan Rakyat was told today.
Second Finance Minister Johari Abdul Ghani said the policy has a positive long- term impact on those who have scored low in their risk assessment profile.
“In the previous system, when an insurance company experiences losses with insurance claims, it will try and hike up insurance premiums.
“We find this unfair to low-risk drivers with a low traffic violation history.”
Johari was replying to a supplementary question from Dr Izani Husin (PAS-Pengkalan Chepa).
Izani had asked to explain the rationale to liberalise motor insurance tariffs in the country.
Following the liberalisation on July 1, the amount of premium motorists will pay will be determined by risk factors which may include the driver’s age and gender, the vehicle’s age, claims record and traffic violation history.
Johari explained that the government would monitor the implementation of the policy until 2019 and will then decide whether to impose a new threshold for motor vehicle premiums.
“We cannot just give it one year. We will give it until 2019 to see if the claim ratio improves.
“Motorists can lodge a report with Bank Negara Malaysia against any insurance company that charges high insurance tariffs and it will investigate.
“They can no longer increase the premiums without any valid reasons,” said Johari.