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Learn more about the Liberalisation of Motor Insurance and how it benefits you.
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On 1 July 2017, Bank Negara Malaysia announced the Liberalisation of Motor Insurance. But how does this impact you? The liberalisation of motor insurance means that the pricing of motor insurance products will no longer be determined based on Motor Tariff (a set fixed price list). Instead, the liberalisation will now allow individual providers to set premium rates for Motor Comprehensive and Motor Third Party, Fire, and Theft products. This shift introduces new regulations, varying premium rates and promotes safer driving behaviours.
As phased liberalisation comes into place, customers can anticipate better services and a wider range of products. This expansion means consumers will have access to a variety of products tailored to their specific needs. Additionally, customers will also be incentivised when they demonstrate safe driving habits.
In this article, we list down some key points that you can benefit from the liberalisation of motor insurance.
The benefits of motor insurance liberalisation
1. Greater Innovation:
As liberalisation encourages innovation and competition among insurers, you can now enjoy a wider choice of innovative products at competitive prices. This policy motivates insurers to integrate greater benefits and features, enhancing road safety and earning you more rewards and discounts.
2. Fairer Pricing:
Instead of one-size-fits-all pricing, insurance companies are now given the flexibility to tailor your premiums based on your risk profile, claims history, and how safely you drive. So, be sure to shop around for the best policy that suits your budget and needs.
3. Enhanced Service Quality:
Cost-efficient online channels facilitate convenient access to insurance protection, enabling customers to purchase coverage anytime, anywhere. This accessibility ensures a seamless experience for policyholders.
4. Promotes Safe Driving Behaviour:
As incentivisation of safe driving habits leads to fewer accidents on the road, the overall safety of road users improves. So, by driving responsibly, you are not just helping yourself but also making the roads safer for everyone else.
What can you do when purchasing insurance in a liberalised market? Here are some tips to consider:
1. Determine Your Protection Needs
When purchasing motor insurance, consider factors beyond price such as policy coverage, exclusions, and the level of customer service provided.
2. Seek Expert Advice
Consult insurance professionals, agents, or customer service representatives to gather information and guidance. This will help you find the right coverage that meets your needs and budget.
3. Manage Your Risk Profile
Maintain a clean driving record and adhere to traffic regulations to keep your No Claims Discount (NCD) and enjoy lower premiums.
By adhering to these guidelines and leveraging the opportunities presented by motor insurance liberalisation,
you can navigate the evolving insurance landscape with confidence and secure coverage that aligns with your
needs and preferences.
For more information on Phased Liberalisation of the Motor Tariffs, click here.
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