Provide clearer picture, insurance firms told

PETALING JAYA: Consumer groups want insurance companies to provide a clearer picture of the new products and policies they plan to launch following the liberalisation of motor insurance from tomorrow.

Federation of Malaysian Consumers Associations (Fomca) secretarygeneral Datuk Paul Selvaraj said there is still confusion among consumers over the new insurance rates.

“Bank Negara and the insurance companies should better communicate with consumers as to what sort of products are being offered, the criteria, and factors in determining the premiums.

“If these are made more transparent, consumers will be able to make better choices,” he said.

He noted that the move towards liberalisation would place more responsibility on consumers to ensure that they are aware of the products offered by insurance companies.

“Consumers must be able to shop around and compare prices for the best deals,” he said.

Selvaraj lauded the decision to retain thirdparty insurance coverage as this would help extend protection to motorists who cannot afford the higher premiums for a wider range of coverage.

He also said Fomca viewed the liberalisation as a positive move towards changing consumer behaviour, particularly when it comes to road safety.

“We support the change in consumer behaviour as those who drive more carefully will pay lower premiums while those who take greater risks pay higher premiums,” he said.

Asked for clarification of the new premium rates, an insurance agent who did not want to be named said he only got to know of the changes a few days ago.

“I am still studying the new rates. “The principal (insurance company) would be in a better position to explain it,” he added.

Malaysian Automotive Association (MAA) president Datuk Aishah Ahmad said insurance companies should advertise the new products they are offering.

“They should create better awareness to let the public know what the new premiums and policies are,” she said.

She said there may be a lack of clarity on the details of the new insurance policies at this stage.

Aishah said the association supported the move to liberalise the industry as it would help change drivers’ behaviour in the long run.

“Motorists will realise that they will pay lower premiums for better coverage if they are more careful on the road,” she noted.

She also said the move would create healthy competition among insurance companies.

“At the end of the day, the insurance companies do not want to lose their business and will come up with better products and policies for motorists to choose from,” she said.