Normal market rates for old cars' motor insurance
Insurance companies previously charged owners of such cars, grouped as "displaced" or deemed high-risk, between 200% and 300% above the normal rates.
"Those with displaced vehicles (which are mainly private vehicles exceeding 10 years old and motorcycles) that are currently underwritten by the Malaysian Motor Insurance Pool will no longer be subjected to the loading imposed on high risk vehicles," said a Bank Negara statement Tuesday.
It added that these vehicles will only be required to undergo annual roadworthiness checks at Puspakom to determine if they were high-risk.
The prior practice used a vehicle's age on the road as the yardstick to categorise its insurance risk, which in turns affected its premium rate.
Bank Negara also said insurers were now prohibited from compelling their customers to purchase non-motor products for the sale of motor insurance.
This included the purchase of personal insurance as a pre-requisite or complementary to the purchase of car insurance.
Bank Negara added that the immediate measures undertaken would ensure that all vehicle owners had access to motor insurance protection while transitioning to the New Motor Cover Framework.
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