Currently, motor insurance premiums or motor takaful contributions are determined by tariffed rates based on model, age and engine capacity of vehicles, and discounts in the form of NCD*. Starting 1 July 2017, the premium/takaful contribution for Motor Comprehensive and Motor Third Party and Theft products will be determined by individual insurance companies and takaful operators. Liberalisation will drive fairer ways of pricing premiums/takaful contributions based on risk profiles, which will encourage road users to be more responsible. This will spur innovation with more products and services to meet different consumer needs for the ultimate benefit of the motoring public.
*No Claims Discount
Click here to view the video by PIAM in support of their initiative to educate consumers in better understanding of liberalisation of motor insurance in Malaysia.