Motor Insurance Premium Increases in 2015 | Malaysia Insurance Everyday

….the 4th round of Motor premium increase took effect on 23rd February 2015″

Yes, we have entered into the Year of the Goat and things are moving pretty fast (at least I can feel it….); not sure if this is that GOAT effect or there being lots of things installed for us Malaysian, like the GST taking effect on 1st April 2015 (yes, that’s April Fools’ day), the imminent rise in Health Insurance premium, likely rise in fuel prices as well, etc. Whatever it is, our current motor insurance tariff premium is also on the increase and this has taken effect on 23rd February 2015 – this is applicable for Private Vehicle, Public Taxi and Express Bus. We will not dwell on the Taxi and Bus premium increase but rather concentrate on the PRIVATE VEHICLE segment.

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.

As outlined in the tables below the amount of premium increase (not taken into consideration premium loadings and discounts) is not too burdensome to the consumer, and should be acceptable moving forward….

“….tables illustrate the EXTRA that you are going to pay based on the cubic capacity of your vehicle.”

(WEST MALAYSIA) THE AMOUNT OF ANNUAL PREMIUM INCREASE FROM 2012 (PRIVATE VEHICLE)
Cubic Capacity (C.C.) 2012 2013 2014 2015 Cumulative over the 4 years period
1400        12.15        12.15        12.15        12.15         48.60
1650         13.50         13.50         13.50         13.50         54.00
2200         15.30         15.30         15.30         15.30         61.20
3050         17.10         17.10         17.10         17.10         68.40
4100         18.45         18.45         18.45         18.45         73.80
4250         19.80         19.80         19.80         19.80         79.20
4400         21.60         21.60         21.60         21.60         86.40
Over 4400         22.95         22.95         22.95         22.95         91.80

 

(EAST MALAYSIA) THE AMOUNT OF ANNUAL PREMIUM INCREASE FROM 2012 (PRIVATE VEHICLE)
Cubic Capacity (C.C.) 2012 2013 2014 2015 Cumulative over the 4 years period
1400        6.00         6.00        6.00         6.00         24.00
1650        6.90          6.90          6.90          6.90         27.60
2200         7.80         7.80         7.80         7.80         31.20
3050         8.40         8.40         8.40         8.40         33.60
4100         9.30         9.30         9.30        9.30         37.20
4250         9.90          9.90          9.90          9.90         39.60
4400         10.80         10.80         10.80        10.80         43.20
Over 4400        11.40         11.40         11.40         11.40         45.60

You may ask me why East Malaysian tariff increase is much lower than the West Malaysian…. certainly this has something to do with poor loss ratios over at the West Malaysian side.

 

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