Things To Know (FAQ)
1. What is Motor detariffication?
Motor insurance in Malaysia is currently tariffed, premiums are standardized for all insurance companies. Bank Negara Malaysia (BNM) has announced that motor insurance will be de-tariffed from 1 July 2017. Insurance companies will be able to practice risk-based pricing, and use their own method to calculate premiums for car insurance, based on the risk profile of the customer.
2. How will my car insurance premium be calculated?
Before Detariffication - Your car insurance premium is determined using only 2 factors:
- The value of your vehicle (sum insured)
- The size of the engine (cc)
Everyone with the same sum insured and engine size will be charged the same premium
After Detariffication - Insurance companies can determine your premium based on multiple factors, including both your vehicle and driver profile. Some examples include:
Driving Experience - Different age groups may be rated as having different levels of risk.
Gender - One gender may have different driving behavior or profile than the other.
Vehicle Make - Vehicles with high risk of theft rate will be considered higher risk.
Others - Different insurers may consider different factors such as claim history, where the car is usually parked, anti-theft installations and others.
3. When will this happen?
Starting 1st July 2017, insurance companies can start to charge premiums based on their own computation of risk and other factors. Policies expiring after 30 June 2017 will be subject to the new detariffed premium rates.
4. What will happen after detarrification?
- Different insurance companies may offer you different premium rates
- Improved levels of customer service and experience, as insurance companies strive to differentiate themselves
- Higher service levels and professionalism from insurance agents are expected due to intense competition
- In the medium to longer term, wider range of products will be offered
- Overall, consumers can expect more options, potential savings and improved service quality
5. How will this affect me as a customer?
You will have the option to select a motor insurance provider that offers you a car insurance plan that addresses your needs. Those with a good claims history and lower risk profile may enjoy better premium rates; and the opposite is true for those with multiple claims history and higher risk profile.
6. How do I know which is the right motor insurance for me after Detariffication?
Insurance premium rates should not be the only factor when selecting your motor insurance. Customer service standards, efficiency in claims handling and track record of insurers are other important considerations. Consult your AXA insurance agent or contact AXA Customer Service to find the best coverage for you.
For AXA Customers:
1. I am an AXA Motor Insurance policyholder. How will Detariffication affect my current policy?
Policy expiring before 1st July 2017 - Your premium will still be calculated based on the tariffed rate.
Policy expiring 1st July 2017 or later - Your premium will be calculated based on new rates.
2. What are the changes to AXA Motor Insurance features and benefits after Detariffication?
You will continue enjoying the same features and benefits offered by AXA Motor Insurance even after detariffication. You will also be able to purchase Add-On optional benefits.
3. Why should I choose AXA Motor Insurance after Detariffication?
AXA Motor Insurance not only offers your competitive insurance premiums, we also provide:
- Complete on-the-road protection with options to add-on protection for windscreen, flood, personal accident and more 24/7
- Motor Roadside Assistance which provides you with free towing services, 6-months repair warranty and more
- Fast claims service, we process your claims within RM5,000 in 5 working days
- The best professional agents who can assist you in getting the best coverage and to make a claim
4. Where should I go to find out more about my Motor Insurance policy and Detariffication?
For further information, you can consult any of our professional AXA agents, or our Customer Service at (603) 2170 8282 / email@example.com, or visit www.axa.com.my