Liberalisation of motor tariffs gets mixed response

KUALA LUMPUR: The liberalisation of motor insurance scheduled to take effect on July 1 has drawn mixed response from the public.

While some lauded Bank Negara for allowing insurers and Takaful operators to determine the premium, others reacted to it with disapproval.

Malaysian Institute of Road Safety Research directorgeneral Prof Dr Wong Shaw Voon said it was a good move for insurers to determine the premium based on factors such as the driver’s safety track record and the area in which the vehicle would be used.

Dr Wong said this would encourage motorists to regulate their behaviour on the road to prevent from being defined as a “highrisk driver”.

“When they have done their best to be safe on the road, they reap the rewards in terms of a low premium.

“Highrisk motorists will have to pay more. It is fair and the right thing to do,” he said.

Sports management practitioner Kenny Loh, 33, expressed support for the move, saying that good drivers would no longer have to subsidise errant ones under the new premium pricing.

“It’s great! Why should others pay for the actions of these racers? I call them racers because they aren’t driving but racing,” he said.

Human resources officer Moana Bagiu, 27, said she was not daunted by the new premiums as she considered herself a “safe driver”.

“I think it’s good for dangerous drivers to pay higher premiums. Better for them to pay more money than with their lives,” she said.

Interior designer Sherra Wong, 28, said she opposed the move as the car owner might have to pay a higher premium due to the recklessness of another driver using the vehicle.

Effective July 1, insurers and Takaful operators would no longer be bound by a set of fixed prices for insurance products.

Bank Negara assistant governor Jessica Chew said that they would instead be able to take into account a host of risk factors and adjust premiums accordingly.

She said the liberalisation of motor tariffs would involve the comprehensive, third party, as well as fire and theft insurance covers.