I am not sure whether this is going to be a reality, ie. the Malaysia Motor Insurance Pool (MMIP) has appointed POS Malaysia to help issue cover for vehicles aged > 10 years citing the public is having difficulties in renewing motor insurance for their aging vehicles from their existing insurance company.
Currently only Uni.Asia and Multi-purpose are providing the services for the public to purchase MMIP’s brand of insurance. (The MMIP brand was previously approved by the industry authorities to cater for some categories of vehicle where insurance procurement is made difficult because of their inherent higher than normal loss ratio. MMIP (previously known as High Risks Motor Pool) was formed with equal share contribution by all available member insurance companies in the country. The terms and conditions of cover is however much higher than those found within acceptance guidelines of insurance companies.)
The public is complaining that it is a real problem getting insurances (the MMIP’s brand) from these two insurance companies (Uni.Asia and Multi-Purpose), including their branches. Most if not all insurers have drastically reviewed their Motor Underwriting guidelines to the detriment of the buying public. It was as if something turned drastically hostile overnight……
Because they were not able to renew their insurance with their existing insurer, they queued up under the hot sun to get their renewal done with MMIP. … that’s what was being complained of. For those who cannot afford this inconvenience, the agent was appointed to assist with the purchase of MMIP cover. Since MMIP does not pay any commission to agents, the agents would charge their customers quite a sizeable amount of commission (in form of mark-up) for assisting their customers to have the MMIP insurance purchase done up.
We are of the view, by appointing POS Malaysia as the additional service provider in addition to Uni.Asia and Multi-purpose, it will surely kill off the agents completely after taking into consideration the so-called mandatory motor rebating implemented wef 1 July 2009. It just goes to show those in authority are acting as if robbing the small-time agents and pass them over to POS Malaysia. MMIP could have stand firm and appointed all the member insurers to provide those much needed services rather than giving it outright to POS Malaysia….. For all agents….. this is a “public haircut” you do not want?