There are many reasons why motor insurance is more a benefit than a pain, with the pain partly because of the high premiums that we have to pay every year. However, car insurance can protect your personal liability so that you will receive the claim amount in the event of loss or damage.
According to the General Insurance Association of Malaysia (PIAM), the total number of vehicle thefts in Malaysia for 2013 was 34,117 units. On top of that, in 2013, motor insurers paid out RM1.29 billion in third party bodily injuries, and third party property damage claims meanwhile were a staggering RM295 million.
On the critical issues facing Motor Insurance, PIAM highlighted that third party claims are increasing at an alarming rate because of high compensation amounts for bodily injuries and property damages, as well as due to rising vehicle theft in the country.
Overall Motor Insurance claims paid out by local general insurers climbed 11% to RM 2.59 billion in first half of 2014, compared to the same period last year. In 2013, total Motor Insurance claims were 17% higher at RM 5.33 billion compared to RM 4.56 billion in 2012.
Moving forward, PIAM has identified raising road safety awareness at the national level, inculcating and instilling good driving habits and the reduction of vehicle thefts as key priorities for the industry.
PIAM Chief Executive Officer, Mark Lim, explained, “Road accidents and vehicle thefts pose serious challenges for the general insurance industry as they contribute significantly to the losses of motor insurers. In 2013 motor insurers paid out RM1.29 billion in third party bodily injuries, an increase of 12% over 2012. Third party property damage claims were RM 295 million, an increase of 28% over 2012. Meanwhile, total claims incurred for motor thefts amounted to RM 627 million in 2013, an increase of 21% from 2012.”
On a more positive note, the total number of vehicle thefts reduced to 34,117 units in 2013 from 37,020 units in 2012. “This latest reduction in vehicle theft reflects the proactive and concerted efforts taken by the various law enforcement agencies and stakeholders, such as the Royal Malaysian Police and the Customs authorities, to combat vehicle theft. It also reflects increasing public awareness on the ground, with individual vehicle owners taking measures to prevent car theft through the effective use of anti-theft and other deterrent devices,” said Lim.
Lim emphasised that the industry is actively putting in place both tactical and strategic programs to check the rising vehicle theft trends. These include the setting up of a Motor Fraud Register, formation of the Vehicle Theft Reduction Council with key stakeholders and close collaboration with the Prime Minister’s Department, PEMANDU’s in national crime reduction efforts.
To drive home the important message of road safety in the minds of every motorist, Lim said PIAM would continue to work closely with government agencies and relevant organizations and associations to strengthen initiatives targeted at promoting road safety awareness.
As part of its efforts to provide peace of mind to motorist, PIAM has teamed up with the Malaysian Takaful Association (MTA) to set up the Accident Assist Call Centre (AACC) at the National level to provide emergency assistance to policyholders involved in road accidents. The 24-hour hotline 1300-22-11-88 also offers accident towing services and attends to all claims inquiries to help motorists.