Mandatory Motor Insurance Premium Rebate

image icon -BoomForUsThe proposed mandatory motor insurance rebating by insurance company is a reality by July this year. However, in the recent PIAM’s proposal to have the member insurers approve the deletion of Clause 5.3 of the Inter-Company Agreement of the General Insurance Business, 31 insurers rejected it. This leads PIAM to suggest the deletion of the word “members” from that particular clause. Such suggestion may simply means creating an uneven playing field for the intermediaries, ie. insurers can discount but agents cannot do likewise. Clause 5.3 simply reads:

No Member, Agent or Broker shall give to any insured or policyholder any discount or rebate whatsoever on any commission paid or payable or on any part or parts thereof, in respect of any insurance policy covering a motor risk rated under the Malaysian Motor Tariff.”

PIAM must readdress the issue again, at least from the perspective of mandatory rebating to be limited to “naturalised” individual Insured only. All other aspects of rebating in as far as motor insurance is concerned, it should not be extended to any business organisation or even governmental organisation. To enhance understanding, please read:

www.malaysianinsurance.com/LunchTimeToday/LunchTImeToday.html

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9 comments for “Mandatory Motor Insurance Premium Rebate

  1. December 23, 2009 at 10:09

    Dear Malaysia Insurance, After all the ruckus about mandatory direct rebating and after 6 months of implementation, looks like not much damage to the intermediaries so far. Not so sure after 1 July 2010.
    Maybe the customers are not too aware and they would rather pass their insurance requirement to agents rather than taking leave to go up to the insurer’s office to buy insurance.

  2. Anonymous
    December 16, 2009 at 10:46

    I want to know, how much discount am I entitled if I buy my car insurance directly with a new insurance company. I do not want to renew with my current company as they do not want to accept my vehicles older than 12 years.

    • December 16, 2009 at 15:15

      If you buy direct with the insurer, you should be getting 5% of the gross premium chargeable as of now. Next year comes 1 July 2010, you should be getting 10%. With respect to your old vehicle, it is true quite a number of insurers are putting this category under scrutiny. However, I think you should not face severe problem in securing a cover otherwise do email me for assistance……

      • denial
        July 19, 2010 at 22:27

        really!! this is amazing… then how agent get gain from sale if nobody go throught they… do u know how i can find more information about it… can u tell me…

        • July 19, 2010 at 23:12

          Alternative buying channel or more options for individual consumers. Info is already there… please read!

  3. ganesh
    December 15, 2009 at 02:36

    Your link to the site “lunch time today” is no longer working – sorry just reporting back!

    • December 15, 2009 at 16:09

      Will be making efforts to retrieve previous materials from old site and have them posted here – Thanks for reminding!

  4. 2senworth
    June 22, 2009 at 13:43

    The insurance industry has come a long way since its “cowboy” days but still its pace in information disbursement and decisive reforms leave much to be desired. Case in point, the issue of direct rebating, shouldnt all the nitty gritties be cleared out before it goes to the press?

  5. June 4, 2009 at 20:44

    Tired of this saga…perhaps it is better if the industry absords all the agents’ staff force so that no one gets retrenched unnecessarily.

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