KUALA LUMPUR: Consumers will know the appropriate market value of motor vehicles when purchasing a comprehensive motor insurance cover for private cars under the new measures announced by Bank Negara Malaysia (BNM).
The central bank said on Monday, Aug 1 this measure was to address the issue of over or under-insurance of motor vehicles, which can result in consumers paying higher than necessary premiums or receiving a lower compensation following a claim against the insurance policy.
BNM said from Aug 1, insurers and takaful operators and also their agents must advise consumers on the present market value of the private car before the latter purchase or renew the motor insurance.
The insurers would have to advise consumers on the importance of insuring the motor vehicle at the appropriate market value; and the effect of over-insurance and under-insurance when a claim is made.
The advice to consumers on the present market value must be based on the ISM Automobile Business Intelligence System (ISM-ABI system) or any other credible vehicle valuation database.'' .
'The coverage of the database will address the vast majority of privately-owned vehicles. However, the database does not include commercial vehicles and motorcycles,' it said.
The central bank said on Monday, Aug 1 this measure was to address the issue of over or under-insurance of motor vehicles, which can result in consumers paying higher than necessary premiums or receiving a lower compensation following a claim against the insurance policy.
BNM said from Aug 1, insurers and takaful operators and also their agents must advise consumers on the present market value of the private car before the latter purchase or renew the motor insurance.
The insurers would have to advise consumers on the importance of insuring the motor vehicle at the appropriate market value; and the effect of over-insurance and under-insurance when a claim is made.
The advice to consumers on the present market value must be based on the ISM Automobile Business Intelligence System (ISM-ABI system) or any other credible vehicle valuation database.'' .
'The coverage of the database will address the vast majority of privately-owned vehicles. However, the database does not include commercial vehicles and motorcycles,' it said.
No comments:
Post a Comment