How much is motor insurance premium increase?

Today the motor insurance premium tariff increased. I just receive renewal notice today then only realized its tariff increase today. AAAAHHHH... I missed the boat. Have to pay more for "feels good" service.



BNM had previously said that the tariffs which have not been revised for more than 30 years had been a major source of difficulties faced by the public in recent years.

NAH! BNM is talking bull shit. If its is so difficult, why on earth more and more banks want to invest into insurance business? More and more new insurance company want to venture into this business?? Why none of insurance company in Malaysia declare bankrupt due to unable to pay claimant for the past 30 years and still making money even though there are so many countless of insurance fraud case without evident, or over claim cases going on??? Think again, they are still making tons of money and they are demanding more.

So who pays the bill? You and me la who else?

Ok, cut it short. I am writing today is not to condemn. I am here to explain how the new tariff is being calculate.

First you must understand that tariff calculate based on type of vehicle. Such as private car, taxi or motorcycle and also engine cc. So I am talking about comprehensive here.

For private car with 1651 - 2200cc engine. Minimum sum insured is RM1000:
Previously before 16 Jan 2012, the first Rm1000 sum insured = RM277.90 premium. And subsequent RM1000 sum insured = RM26.00 premium.

Today, first RM1000 sum insured = RM 293.20 premium. And subsequent RM1000 sum insured is still remains RM26.00.

Conclusion is the tariff only increased on the first RM1000 sum insured, which is RM15.30 in this example.

RM15.30 may seems small amount of money. Malaysia got 21.25 million vehicle on the road. If only 30% of it are private cars, this year alone insurance company is making additional of approx RM 100,000,000 for private cars category. Don't forget there are new cars being registered everyday.

You can make your own calculation at the official Insurance Info website premium calculator