Pos Malaysia to dispense Motor Insurance for Malaysia Motor Pool

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.

haircutCurrently 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?pos-malaysia-logo

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11 comments for “Pos Malaysia to dispense Motor Insurance for Malaysia Motor Pool

  1. Anonymous
    March 24, 2010 at 23:49


    • March 26, 2010 at 00:53

      Heard about it but cannot confirm whether this is a fact, but some of the agents I have in contact with did told me the post office do not sell third party aggressively, it seems there is a quota. But it is for the consumer to complain if it is true…. because they should allow you to buy the MMIP third party. Nevertheless, this is more expensive!

  2. Anonymous
    October 21, 2009 at 23:47

    It looks like searching for “malaysian motor insurance pool” is consistently an important google search phrase….

    • Anonymous
      March 24, 2010 at 23:53

      Think so. Because not easy to get insurance for vehicles more than 20 years!

  3. Citizen
    July 28, 2009 at 21:45

    I agree with MMIP fair decision as a consumer. Before this implementation, agents seem to neglect the third-party segment and left them stranded. Why the agents are whining now? The agents are not at lost since the agents don’t accept third-party consumer anyway. Even if they accept the third-party consumer, the agents charge high amount. It show the agents are greedy. I fully support the government decision on online-insurance which will let agents without good service stranded. Without good service, consumer would be better off to apply online at their on convenience. This will lead to more competitive market and scrub off bad service by insurance agents. Don’t judge others education base on your bias mind, at least the POS Malaysia officers are more humane than you.
    A person with a good-hearted is a million times better than yourself awarded “high education”.

  4. esle
    July 17, 2009 at 18:00

    Piam suppose to be site at the agent now are turning againts us, we still need to pay our yearly fees to renew our agency

    • July 17, 2009 at 18:42

      Dear esle,
      Not that PIAM is against the agents but because most insurers no longer wanted to underwrite third party, taxi, buses, A permit… The insurers felt the tariff premium together with the Bank Negara’s prescribed maximum loading is in adequate for working out any underwriting profit. The implementation of the RIsk-based capital (RBC) wef 1st Jan 2009, also aggravated the situation….resulting in quite a number of insurers have difficulties meeting the RBC position. With the insurers phrasing out those higher risks from their books (for the timebeing), it is naturally difficult for the public to buy insurance…. So the focus is on the MMIP but the public can only buy from two insurers, Multi-purpose and UniAsia, thus making purchasing even more difficult.
      I supposed the government insisted that MMIP should open up to more insurers to dispense MMIP’s brand of insurance… and as usual, POS Malaysia was selected because it was claimed that they have 684 outlets nationwide. I think POS lobbied very hard, perhaps through their usual CLOT…..they got it.
      In a way I can see your dissapointment… Well! “When the going gets tough, the tough gets going!”

  5. Anonymous
    July 13, 2009 at 00:56

    First and foremost, just wonder why only Uni Asia & Multi-Purpose providing such cover and not from other insurers ? This is about industry matter and not just Uni Asia & Multi-Purpose. The whole industry should share the burden and contribute to the public. Also bearing in mind that MMIP is shared by the industry.

    The appointment of POS Malaysia was mentioned in the press as well. No secrets. Citing factor was that POS Malaysia has wide network/branches in Malaysia. This bring convenience to purchasers. Since MMIP is not paying commission to agents, then what “remuneration package or system” to POS Malaysia ? This remember us about the refund of insurance premium via POS Malaysia and subsequently their service was terminated!


    • July 15, 2009 at 00:28

      We do not know whose decision was it to appoint POS M’sia; BNM, the politician or the MMIP?? MMIP could have easily request more insurers to sign up to help out with the situation…..most would have gladly participate…Kurnia would be the first to volunteer; and get the 10% commission from doing so. As rightly pointed out by you, a blunder with the refund of some “petrol” related thing (just can’t remember much…), may also created some other blunders for the MMIP…..imagine if they do not follow the underwriting guidelines, ie inspect vehicles or load as per the loading table….they may cost us a bomb; afterall insurers are co-owner of this pool! Then, those people behind the POS counters…..what education do they have?? Are they trained….they maybe if it is just to issue third party…..

  6. Jap-pan
    July 10, 2009 at 09:33

    Ya! It is getting worst than expected. So many unnecessary changes nowadays affecting the agent’s community.

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