KUALA LUMPUR: All general insurers must provide motor cover to all motorists including those 'displaced vehicles' -- mainly comprise private vehicles exceeding 10 years old, Bank Negara Malaysia said.
The central bank's directive, issued on Tuesday, May 3 and came into effect immediately, was also to ensure motorcycles currently underwritten by the Malaysian Motor Insurance Pool (MMIP) would be provided motor cover.
'With immediate effect 'displaced vehicles' will be charged the normal market premium rates and will not be subjected to the loading imposed on high risk vehicles.'' In addition, such 'displaced vehicles' will only be required to undergo annual roadworthiness checks at Puspakom if the vehicles are deemed to be high-risk,' it said.
BNM said it also prohibited insurers from compelling their customers to purchase non-motor products as a condition for the sale of a motor cover.
'The immediate measures undertaken will ensure that members of the public continue to have access to the necessary motor insurance protection while transitioning to the New Motor Cover Framework (Framework).
'The New Framework which will take effect in January 2012 provides a holistic solution to address the structural issues within the motor insurance and takaful sector,' it said.
The central bank's directive, issued on Tuesday, May 3 and came into effect immediately, was also to ensure motorcycles currently underwritten by the Malaysian Motor Insurance Pool (MMIP) would be provided motor cover.
'With immediate effect 'displaced vehicles' will be charged the normal market premium rates and will not be subjected to the loading imposed on high risk vehicles.'' In addition, such 'displaced vehicles' will only be required to undergo annual roadworthiness checks at Puspakom if the vehicles are deemed to be high-risk,' it said.
BNM said it also prohibited insurers from compelling their customers to purchase non-motor products as a condition for the sale of a motor cover.
'The immediate measures undertaken will ensure that members of the public continue to have access to the necessary motor insurance protection while transitioning to the New Motor Cover Framework (Framework).
'The New Framework which will take effect in January 2012 provides a holistic solution to address the structural issues within the motor insurance and takaful sector,' it said.
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