Malaysia Motor Insurance Premium Calculator|

Having seen the tables in previous pages for Motor Tariff 2014 for West Malaysia and East Malaysia, we shall give you the formula below and apply in our an illustration of the calculation of motor insurance premium. for Private car and motorcycle.

The Formula is

Proposed Sum insured(SI) to the nearest thousands minus () One thousand multiply (x) by RM26.00  add (+) the premium for First Thousand according to the Cubic Capacity (C.C.)of the car engine add (+) RM10(Stamp Duty).  if company car, add (+) Service Tax of 6% of the net premium before stamp duty.

If the insured is entitled to No Claim Discount(NCD) or No Claim Bonus(NCB)  which is the same as the rebate under Takaful motor insurance, please minus the percentage of NCD entitlement from the Net premium.

Example A:

Miss Apple proposed sum insured according to agreed value of the car is RM50,000.  The NCD is Nil (0%).  Her Proton car Engine cubic capacity is 1468 cc.  She is a 25 years old Secretary working in Batu Kawan Penang (Assuming no loading on age of young driver).

Therefore, the calculation is as below:

(SI – 1K) x RM26  + RM292.00(engine cc is above 1400cc  but under 1650cc category) + stamp duty RM10.00.

(RM50K – RM1K)) x RM26.00 + RM292.00  + RM10 = RM1,576.00  or

RM1,566.00(Gross Premium) + RM10(Stamp Duty) = RM1,576.00(Total Premium Payable)*


Example B

Mr Bala owns a 2012 Toyota car with engine capacity of 1998 cc valued at RM100,000.  He is a Manager age 53 years old working at Putrajaya.  He is entitled to NCD of 55%.  He wanted to insure comprehensive insurance plus windscreen cover of  RM3,000.  His wife and a 28 years old son are regularly driving his car and he wanted to add both of them as additional named drivers.

Note:  i) Windscreen premium rating is 15% on the sum insured for windscreen only. ii) Two named drivers are allowed free in comprehensive motor insurance policy.  The third named driver and subsequent drivers are charged additional RM10 for each named person.

The formula is :

{(SI -1K) x RM26.00 + RM323.80 } – 55% NCD + RM10(3rd named Driver) + (Windscreen RM3,000 x 15%) + RM10(Stamp Duty)= Total Premium Payable

= {(RM100K -RM1K) x RM26 + RM323.80} – 55% NCD +RM10+ (RM3000 x 15%)+RM10

={(99 x RM26 )+ RM323.80} – 55% NCD + RM10 + RM450 + RM10

= RM2,897.80 – (RM2,897.80 x 55%) + RM10 +RM450 +RM10

= (RM2,897.80 – RM1,593.79) + RM10 +RM450 +RM10

=RM1,304.01 + RM10 + RM450 + RM10 = RM1,774.01  or

RM1,764.01(Gross Premium) + RM10(Stamp Duty) = RM1,774.01(Total Premium Payable)**

Get It?

If this is a company car, add additional 6% premium before stamp duty.  For company car, it is advisable to include all drivers at additional cost RM50 so that any employee can drive the car and not subject to the excess in the event of an accident claim.

Latest Update on GST

Important Note:  With effect from 1st April, 2015,  all motor insurance premiums whether for Private Individual or Company are subjected to six (6%) percent Goods and Services Tax(GST) before stamp duty.

Therefore, the above two  illustrations (A) and (B), the calculations will be revised to include an additional 6% GST.

* Miss Apple’s premium will be revised upwards by RM1,566.00 x 6% = RM93.96.

Miss Apple will now pay a total premium of RM1,566.00 + RM93.96(6% GST)+ RM10(Stamp Duty) = RM1,669.96*


** Mr Bala’s premium will be revised upwards by RM1,764.01 x 6% = RM105.84,

Mr Bala will now pay a total premium of RM1,764.01 + RM105.84(6% GST) + RM10(Stamp Duty) = RM1,879.85**

If you find this exercise is challenging to your mind, do not worry.

Yes, we have the solution for you, You can use the Insurance Info site premium calculator and complete the details to work it out.  Do come back here or contact us or send email to us if you need help with288 quotation.  We shall be glad to assist you anytime.


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