PETALING JAYA: A new tariff for third-party insurance is being drawn up, following insurance firms’ refusal to offer coverage to vehicles that are more than 10 years old.
Deputy Finance Minister Datuk Chor Chee Heung said Bank Negara was reviewing the rate to come up with a premium that was acceptable to all.
“At present, insurance firms are not willing to offer third-party insurance because the rate has remained the same for more than 30 years,’’ he said, commenting on public complaints over insurance companies’ refusal to sell third-party insurance for old vehicles.
Chor was speaking to reporters after opening the fourth Chief Financial Officer (CFO) Summit at a hotel here yesterday.
Chor said the new tariff should be based on supply and demand, and market forces.
“We are aware of the many complaints lodged by motorists who are unhappy that insurance companies forced them to buy additional personal accident packages if they want to buy third-party schemes.
“For every RM1 received, the insurance companies have to pay RM2.50 because the administration cost has gone up,’’ he said.
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