The (BNM) Bank Negara’s Concept Paper on “PHASED LIBERALISATION OF MOTOR AND FIRE TARIFFS” is out, posted on their kijang-net portal and awaiting responses (until 29 April 2016) from insurance practitioners. I thought of highlighting what I could possibly see and decipher from the very “condensed” write-up. I would appreciate some feedbacks from you guys before I summarise some responses to BNM. By the way, I am not able to post the full concept paper here as the paper is not supposed to be for public viewing, nevertheless I should provide you with one if you have genuine intention to provide necessary feedback. Kindly provide me with the necessary info within the following contact form:
In the first phase (the first year of implementation, starting July 1), the industry will be allowed to offer “new products” and optional add-on covers at market rates. This can include, for example, additional policies to cover engine hydro-lock (water entering the engine in lightly flooded areas, separated out from the currently costly flood damage insurance), lost car key replacement, and perhaps even the availability of courtesy cars.
A 40-year-old man, who was part of a syndicate which set up fake road accidents in order to cheat $104,700 (RM320,468) from insurance companies through fraudulent claims, was jailed for 44 weeks on Tuesday. Tew Yee Jeng, a Malaysian, will also be disqualified from driving for five years after his release from prison.
Rounding up accomplices desperate to absolve themselves from debts and financial hardship, Tew Yee Jeng, a 40-year-old Malaysian, made several trips to Singapore between 2012 and 2014, where he would orchestrate scam traffic accidents to make insurance claims for property damage and bodily injuries. The drivers he recruited would abruptly slam their brakes on purpose, leading to collisions with vehicles behind them that could not be stopped in time to prevent a crash.
Piam corporate communications representative Nur Fazliana Mohd Zuki said the private car insurance would be rendered useless if drivers engage in ride-sharing, which is deemed to be a commercial activity. “Therefore owners of such vehicles, drivers and passengers who use their private cars for commercial use will not be able to claim, under their insurance policy, in the event of an accident.
The world is becoming more connected in the digital age. Suddenly, almost everything is about sharing. Not only are ride- and home-sharing services wildly popular, but on-demand deliveries of meals and packages as well as sharing of tools, clothing and even bathroom facilities when a portable toilet is unappealing are becoming ever more available.
A riot is defined by Black’s Law Dictionary as: An assemblage of three or more persons in a public place taking concerted action in a turbulent and disorderly manner for a common purpose (regardless of the lawfulness of that purpose). An unlawful disturbance of the peace by an assemblage of usually three or more persons acting with a common purpose in a violent or tumultuous manner that threatens or terrorizes the public or an institution. Courts around the world have defined riots with some extensions to the original definition in Black’s Law Dictionary. For example, it has been defined as “the gathering of three or more persons” with the “common purpose” to do “an un/lawful act [with the intent to use] force or violence.” It has also been defined as requiring “”tumult” or disturbance” at the time of the action.
Having Singapore insurers cover foreign vehicles will lead to greater confidence for victims that their no-claims discount will be protected, as there will be no cross-border claims involved. Hence, this will encourage them to claim against their own policies first and get their vehicles repaired earlier.
Section 94 and 95 of the RTA 1987 prohibits an insurer from relying on certain terms in an insurance policy for the purposes of excluding liability. On the other hand a term or condition which does not come within the purview of section 94 and 95 may be legitimately relied upon by the insurer for the purposes of excluding liability under the policy when a claim is brought by a third party. The question now is whether Section 91(1)(b) of the RTA 1987 can be legitimately relied upon by the Appellant to exclude liability. The answer to this question lies in section 95(k) of the RTA 1987 itself.
This 2015 tariff premium increase is the 4th of the scheduled increases mooted under the 2011 New Motor Insurance Cover Framework that was established by a Joint Working Committee comprising of Bank Negara, PDRM, Ministry of Health, Judiciary, Malaysian Bar, Ministry of Finance, Insurance & Takaful Industry, Consumer associations and Transport associations. The implementation date is 23 February 2015.