{"id":2914,"date":"2019-04-04T10:28:33","date_gmt":"2019-04-04T02:28:33","guid":{"rendered":"https:\/\/www.tuneprotect.com\/chatterbug\/?p=2914"},"modified":"2019-04-04T10:33:46","modified_gmt":"2019-04-04T02:33:46","slug":"motor-detarrification-how-it-affects-the-price-of-your-car-insurance-in-malaysia","status":"publish","type":"post","link":"https:\/\/uat-wprs.tuneprotect.com\/chatterbug\/motor-detarrification-how-it-affects-the-price-of-your-car-insurance-in-malaysia\/","title":{"rendered":"Motor Detarrification: How It Affects The Price Of Your Car Insurance In Malaysia"},"content":{"rendered":"\n

What do you know about\ndetariffication? <\/strong><\/h3>\n\n\n\n

Introduction<\/strong><\/h3>\n\n\n\n

For the past 3 decades, motor insurance premium is regulated by a tariff structure and it\u2019s controlled by Bank Negara Malaysia. Beginning 1st<\/sup> July 2017, motor insurance in Malaysia will be de-tariffed which accounts to 46.2% of the total general insurance market in 2016.<\/p>\n\n\n\n

  1. What does detariffication mean?
    <\/strong>It means removing the traffic structure that allows insurance companies to charge premiums based on the risk behaviour of the consumer.<\/li>
  2. What would determine a car insurance premium when detariffication occurs?
    <\/strong>Risk-Based Pricing system will be implemented by all insurance companies. The system is not based on the CC of your car but other factors such as gender, driver\u2019s age, usage of car, claims experience, occupation, vehicle model, etc. The higher the risk a driver will get into an accident, the higher the premium will be and vice versa.<\/li>
  3. How will it be implemented?
    <\/strong>Detariffication will be implemented gradually, this is BNM\u2019s effort to ensure the consumers will not be shocked by substantial high premium rates. Here\u2019s the simplified phases:<\/li><\/ol>\n\n\n\n