New Motor Insurance Premium Framework | How are your motor insurance premium computed and How much more are you going to pay for your motor insurance in 2012?
Get the answers here….
In case you do not know, starting this 16th January 2012 the Malaysian Insurance industry will be imposing some small increases to your existing motor insurance premium. These prescribed increases are applicable for the year 2012 but with gradual increases till 2016 when the motor insurance premium structure would by then be liberalised. Don’t worry about the increases, these are really very small amount and in the process would enable customers to purchase their insurance requirements with much ease. Here are the schedules of the premium increases, applicable whether you are purchasing comprehensive, third party fire & theft or third party insurances. The additional premium listed are subject to both loading and no-claim-bonus discount. However these are NOT applicable for purchases made at Malaysia Motor Insurance Pool (MMIP).
If you are an agent or insurance practitioner you may opt-in for the more detailed premium framework below….
| Private Vehicles | ||
| Cubic Capacity Not Exceeding | West Malaysia | East Malaysia |
| 1400 | 12.15 | 6.00 |
| 1650 | 13.50 | 6.90 |
| 2200 | 15.30 | 7.80 |
| 3050 | 17.10 | 8.40 |
| 4100 | 18.45 | 9.30 |
| 4250 | 19.80 | 9.90 |
| 4400 | 21.60 | 10.80 |
| Over 4400 | 22.95 | 11.40 |
| Motor Cycles | ||
| Cubic Capacity Not Exceeding | West Malaysia | East Malaysia |
| 50 | 1.20 | 0.80 |
| 100 | 1.40 | 0.80 |
| 125 | 1.60 | 0.80 |
| 225 | 2.00 | 0.85 |
| 350 | 2.50 | 1.25 |
| 500 | 2.90 | 1.45 |
| Over 500 | 3.20 | 1.60 |
| Public Taxis | ||
| Cubic Capacity Not Exceeding | West Malaysia | East Malaysia |
| 1400 | 23.40 | 11.7 |
| 1650 | 27.00 | 13.5 |
| 2200 | 30.60 | 15.3 |
| 3050 | 34.20 | 17.1 |
| 4100 | 37.80 | 18.9 |
| 4250 | 39.60 | 19.8 |
| 4400 | 43.20 | 21.6 |
| Over 4400 | 46.80 | 23.4 |
| Hire Cars – Chauffeur Driven | ||
| Cubic Capacity Not Exceeding | West Malaysia | East Malaysia |
| 1400 | 35.45 | 17.75 |
| 1650 | 40.95 | 20.45 |
| 2200 | 46.40 | 23.20 |
| 3050 | 51.85 | 25.90 |
| 4100 | 57.30 | 28.65 |
| 4250 | 60.05 | 30.00 |
| 4400 | 65.50 | 32.75 |
| Over 4400 | 70.95 | 35.50 |
| Goods Vehicle – C Permit | ||
| Carrying Capacity Not Exceeding | West Malaysia | East Malaysia |
| 500 KG | 18.60 | 9.30 |
| 1000 KG | 22.30 | 11.15 |
| 1500 KG | 24.15 | 12.10 |
| 2000 KG | 26.00 | 13.00 |
| 3000 KG | 27.90 | 13.95 |
| 4000 KG | 29.75 | 14.85 |
| 5000 KG | 33.45 | 16.70 |
| 6000 KG | 33.45 | 16.70 |
| 7000 KG | 35.30 | 17.65 |
| 8000 KG | 35.30 | 17.65 |
| 9000 KG | 37.20 | 18.60 |
| 10000 KG | 37.20 | 18.60 |
| Goods Vehicle – A Permit | ||
| Carrying Capacity Not Exceeding | West Malaysia | East Malaysia |
| 500 KG | 28.05 | 14.00 |
| 1000 KG | 37.40 | 18.70 |
| 1500 KG | 39.75 | 19.90 |
| 2000 KG | 42.10 | 21.05 |
| 3000 KG | 46.80 | 23.40 |
| 4000 KG | 49.10 | 24.55 |
| 5000 KG | 53.80 | 26.90 |
| 6000 KG | 56.15 | 28.05 |
| 7000 KG | 58.50 | 29.25 |
| 8000 KG | 60.80 | 30.40 |
| 9000 KG | 63.15 | 31.60 |
| 10000 KG | 65.50 | 32.75 |
| Buses – Express | ||
| Passenger Carrying Capacity | West Malaysia | East Malaysia |
| 8 | 55.40 | 27.70 |
| 9 | 58.90 | 29.45 |
| 10 | 62.35 | 31.15 |
| 11 | 65.80 | 32.90 |
| 12 | 69.30 | 34.65 |
| 13 | 72.75 | 36.35 |
| 14 | 76.20 | 38.10 |
| 15 | 79.65 | 39.80 |
| 16 | 83.15 | 41.55 |
| 17 | 86.60 | 43.30 |
| 18 | 90.05 | 45.00 |
| 19 | 93.55 | 46.75 |
| 20 | 97.00 | 48.50 |
| 21 | 100.45 | 50.20 |
| 22 | 103.95 | 51.95 |
| 23 | 107.30 | 53.70 |
| 24 | 110.85 | 55.40 |
| 25 | 114.30 | 57.15 |
| 26 | 117.80 | 58.90 |
| 27 | 121.25 | 60.60 |
| 28 | 124.70 | 62.35 |
| 29 | 128.20 | 64.10 |
| 30 | 131.65 | 65.80 |
| 31 | 135.10 | 67.55 |
| 32 | 138.60 | 69.30 |
| 33 | 142.05 | 71.00 |
| 34 | 145.50 | 72.75 |
| 35 | 148.95 | 74.45 |
| 36 | 152.45 | 76.20 |
| 37 | 155.90 | 77.95 |
| 38 | 159.35 | 79.65 |
| 39 | 162.85 | 81.40 |
| 40 | 166.30 | 83.15 |
| Status quo | ||
| (1) Hire Cars – Hirer Driving | ||
| (2) Motor Trade | ||
| (3) Public Bus | ||
| (4) Private Bus | ||
| (5) School Bus | ||
| (6) Special Type | ||
| (7) Motor Cycle Trade | ||
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Has the amount of “gradual increase of premium” confirmed? When will the effective date of the next increase be – 16/01/2013?
Personally I feel that the increase is in such gradual amounts, we would be better of in going on a once-off increase rather than such progressive increases. There are few potential impacts here
i) Renewal notices are printed in advance. Premium may not actually reflect the actual price printed on renewal notices
ii) Workwise seem impractical as this would involve system changes – need to pay the programmers esp if using outsourced IT/e-cover note services and also the amount of testing that is involved.
iii)Endorsements to existing policy (esp extension) may have premium computational issues esp if the company’s system is implementing a table-driven premium computational system (hence may involve a lot of manual checking to cross reference the previous premium) – this will heavily depend on the system architecture/design.
It would be good if some certainty can be given as most companies have to prioritise projects and look into every angle possible. As it is this announcement to effect this on the 16/01/2012 comes rather last minute.
Mr. Ng, A gradual increase is good for the consumer than a one-off increase, which the latter is a great burden….
i) Although renewal notices are already printed in advance perhaps 3 months earlier on but the insurers can resend a supplementary to their customer telling them that there will be increase-in-premium if they renewed their policy on or after 16th January 2012. Of course you have some insurers ready to issue renewal cover if the insured could produce the renewal notice document with the prescribed “old” computed premium. PIAM motor sub-committee had agreed to enforce on the basis of transaction date, i.e. any e-cover issued on and after 16th January 2012 will auto-computed under the new premium table.
ii) System changes nowadays are unavoidable so if you are an agent it makes better business sense to ride on your principal’s point-of-sales systems rather than trying to own one or having one’s outsourced system. It is best to leverage on the principal’s systems. If your agency is on own controlled point-of-sale system it is best to make the change now.
iii) For endorsements, I think PIAM motor sub-comm has agreed to adopt “follow the premium structure of the policy” which mean any policy issued with the old premium structure then the endorsement is computed on the basis of the old premium structure even if the date of the endorsement is on or after 16th January. I think with this thoughts it would make things much more easy for the industry in implementing this premium structure change.
Yes, I agreed with you that this change is a last minute thing…. I cannot comment as this is not the problem of the industry byt rather lies with the various authorities….
Cheers are happy Chinese New Year!