To start with. “Detariffication” is not translatable through google apps. That is how confusing it is.
This write-up might not be so accurate due to the effort of making everybody understood what actually happening by this 1st July.
Note: motor insurance = vehicles with engine = motorcycle, car, lorry & etc
Current calculation of motor insurance all these while was calculation started with the base value of RM per CC. The higher your CC the higher your bill no matter what kind of risk there may be. A converted 2.0cc race Saga with no ABS & other safety feature will be priced the same as other sophisticated 2017 2.0cc vehicle.
In short, all these while, everybody literally being charged at a flat rate (per CC).
Whilst Insurance is actually a business based on risk factors, this does not seem quite right. So they introduce “loading” & “access” fee which will top-up the difference. Some of it based on the driver’s condition risk.
Example :
- below 24 – energetic + less experience will spend more time on the road thus higher probability to involve in a collision.
- above 60 – few cases of eyesight problem, heart attack, blood pressure contribute to the calculation.
** Your insurance company (across brands) charges merely the same all these while. They work hard to recover the loss by doing their job in a very efficient manner. This includes cutting down their staff number as well.
So what will happen when the “new” Detariffication in place?
It is not a bonus day for the insurance company but rather “things came back to normal” for them. They can perform doing things at their best. The underwriters will work hard every single day analysing statistics.
- Less risk = cheaper
- Higher risk = less cheap lah kan …
What does this mean us, the drivers?
Start from 1st July, everybody will be running like a chicken with no head from one branch/brand to another gathering motor insurance quotation seeking for the less expensive bill.
We don’t do the chicken dance, but yes we will know which insurance or takaful brands & coverage suite your needs when detariffication comes.
It’s our bread & butter.
House Of Insurance
0383200200
renewal@hoi.my