A new Motor insurance POOL for old motor vehicles?

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I am not sure whether our industry is having too many spoke-persons, our Deputy Finance minister, Datuk Chor on 6th June told the press  that the government would be setting up a motor insurance pool to cater for the old vehicles, ie. vehicles aged > 10 years. This proposed pool is necessary because the current insurance market was perceived by everyone that buying insurance for old vehicles is indeed very difficult and further more there were complaints about agents and insurers ganging up to “force” Insured into buying additional policy such as Auto-PA. What pool was he taking about? Is he referring to the MMIP?

Datuk Chor went on to say the maximum loading is 50% of the basic tariff premium and would be available at all the POS Malaysia’s outlets. BUt he never mentioned whether this is applicable for third party policy or comprehensive….

On the 16th June, another Deputy Financial Minister, Dato Awang Adek also spoke up, his was about risk-based motor insurance premium  as a better alternative to the current tariff based premium. If you must say it, he should have stressed on detariffication of the Motor premium.

The fact remained irregardless what was being said by politicians todate, insurers are still having difficulties adjusting to the new risk-based capital regime. This regime imposes numerous obligations and capital risk charge computation methods including stricter actuarial assumptions like pegging insurance technical liabilities at a minimum 75% confidence level. One very large insurance player seems to have proposed to BNM for an extension of their financial reporting from end-June to end-December; perhaps signifying their RBC related internal issues are not over yet – looks like just a tip of an iceberg. While adjusting for the conventional insurers are getting difficult, the takaful and the Lofsa registered reinsurers are expected to join in sometimes 2010 and 2011 – this may further add to BNM’s headache……

The premium for motor insurance must go up; certainly they must in order to realistically support the RBC regime but it is not likely toif that is to be done from raising the tariff premium – no, no, no…. the rakyat would not agree – so says the politicians! This leaves no option except for detariff of the nation’s two large premium segments, ie. Fire and Motor – they must go….

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7 comments for “A new Motor insurance POOL for old motor vehicles?

  1. fadzila
    June 27, 2012 at 19:34

    Hi.. I’ve got thro’ the General Ins exam thus I wish to become and agent for MMIP. how to go about? appreciate if you could furnish me with the procedure. many thanx!!

    • July 1, 2012 at 14:35

      Congrats to you having passed in the exam. However, MMIP does not appoint any agent, only agent they appoint are those from the shareholder insurance companies and Takaful, and perhaps the only outsider is POS Malaysia.

  2. November 26, 2011 at 03:12

    Great submit, very informative. I’m wondering why the other specialists of this sector do not realize this. You should continue your writing. I’m sure, you have a great readers’ base already!|What’s Happening i am new to this, I stumbled upon this I’ve discovered It absolutely helpful and it has aided me out loads. I hope to contribute & aid different customers like its helped me. Great job.

  3. ann
    April 3, 2010 at 12:02

    I am a one of kurnia insurance agent , may I apply as a pool insurance agent. please tell me the proceder. Thank you very much

    • April 3, 2010 at 12:50

      Dear Ann,
      The answer is a big NO at this moment if you are talking about Malaysian Motor Insurance Pool (MMIP)! There are currently three representatives (or agents depending how you want to call them) – Multi-purpose Insurance, UniAsia Insurance and POS Malaysia. Both Multi-purpose and UniAsia was appointed many years ago during the time where most insurers do not wish to be the handling agent. POS Malaysia came in recently, just last year…. As of now no application for agency is opened, at least this is not for the small and conventional agent.

      By the way, if you wish to join another pool, you may follow us at http://www.facebook.com/miiagroup or you can click through the facebook badge at the right hand bottom corner of this blogsite. Currently our iPortal is still in live Beta testing stages….

      Wish you well…..

  4. Mr. Wong
    November 18, 2009 at 23:24

    I want to know where to buy insurance – 3rd party for my car? My car is still performing good.

    • November 19, 2009 at 15:14

      Mr. Wong, nowadays all the insurers in town are not too friendly to old cars so it is expected to be difficult for anyone to buy third party insurance cover unless you have better connection, ie. you are in the senior management team of a large corporation. You can then arm-twist your agent or your insurer – and there should be most happy to help you, otherwise you need to hang out at the Pos Malaysia, Uni.Asia or Multi-Purpose Insurance office to buy the insurance. Be prepare to pay more, perhaps in the region of 100% to 150% incease depending on the age of your car.

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