In Malaysia, the motor insurance premium is tariff rated and is governed by the General Insurance Association Malaysia(PIAM) rules and regulations which is under the supervision of Bank Negara MalaysiaÂ under Section 144 of the repealed Insurance Act 1996 and Section 275 of the Financial Services Act 2013.
Simply, it means, you will be charged for the same amount of premium irrespective of which insurance company you purchased a standard Comprehensive or Third Party Fire and Theft or Third Party car insurance policy from, for a normal standard risks of a Â particular make and model and year of manufacture of that vehicle.
Motor Insurance Tariff premium rates for policies purchased or renewed beginning 15 February, 2014Â for selected vehicles haveÂ been Adjusted following a revision approved by the central bank. Â The previous adjustment was on 15 February 2013.
However, when each insurance company applied their own internal underwriting guidelines which are legitimates and are provided for in the the Motor Insurance Tariff Â rules and regulations, such as loading of say 10% or 15% for age of vehicle that is above say 10 years or 15 years respectively while another company might have imposed only 5% or 10% respectively, then, this is the difference. Â Consumers can save some money if they have the time and care to scout around.
Motor Insurance is commonly referred to as Car Insurance Â here in Malaysia. In the Western Countries, it is usually known as Motor Insurance or Auto Â Insurance. Â Like they said, Â ” a rose is a rose you can call it by any name”,
Please do not confuse Motor Insurance with Motorcycle insurance as the locals here will just simply call a Motorcycle a “Motor”. Â By the way, Motorcycle Insurance is also Tariff Rated.
In facts, the insurance premiums for the other classes of vehicles, other than Private cars usage, such as Commercial vehicles used asÂ Taxis, Limousines, Hired Cars, School Buses, Factory Buses and Express Buses(or Coaches) and Lorries and Trailers. Special Vehicles such as Forklifts, Backhoes, Cranes and Other Heavy vehicles are not Tariff Rated and can vary from insurers to insurers.
The motor tariff rate s are different for Sabah and Sarawak as compared to the rates applicable to vehicles in Peninsular Malaysia.
Next, please refer the following page for the formula Â of calculation of insurance premium for private cars. Â We shall show you motor insurance premium calculator for quotation purpose only. Â For an accurate and actual car insurance premium quote, please contact us if you need help.