Motor insurer AIG has announced that it will not provide insurance coverage for McLaren sports cars when driven across the Causeway into Malaysia. This decision follows a recent crash involving three McLarens in Johor on Oct 29, 2023, prompting AIG to cite an increase in severe accidents involving McLaren models in Malaysia.
According to The Straits Times and reported by The Star, starting April 1, 2024, AIG stated that it will not be liable for losses arising from accidents outside of Singapore. The decision has left McLaren owners shocked and puzzled, with some expressing confusion over why McLaren vehicles are being singled out.
Marcus Luah, one of the drivers involved in the Johor crash, expressed bewilderment at the decision and mentioned that AIG quoted him a premium that was significantly higher than his current one, prompting him to seek alternatives.
While rare, such decisions are not unheard of for high-end cars, according to insurance broker Eazy CEO Douglas Chia. However, AIG’s move has raised concerns among McLaren owners, leading dealerships like Eurokars to explore alternative insurance partners to mitigate the impact on existing customers.
The General Insurance Association of Singapore (GIA) refrained from commenting on individual members’ practices, stating that insurers determine their risk acceptance criteria. Meanwhile, legal experts have pointed out that insurers generally have the right to decline coverage for certain risks upon policy renewal, but unilateral changes mid-stream may not be permissible without policy provisions.
The decision by AIG comes amidst incidents involving McLaren vehicles, including a crash on Keppel Road in Singapore in May 2023. Despite such occurrences, McLaren remains a popular choice in Singapore, with approximately 200 McLarens registered in the country, according to Land Transport Authority statistics.
When Allianz General Insurance Company (Malaysia) Berhad introduced its Allianz Road Rangers service in 2017, it was industry first. It has certainly been a much appreciated service by motorists (64,000 of them in 2021, according to the company). Besides having their own Allianz-branded tow trucks, the team also has a first-responder bike team to reach motorists faster. They can provide initial assistance and first aid, if needed.
Furthermore, the company provides complete support to its policyholders after their accident. They are assisted in making police reports, submitting claims and kept informed of the progress of their vehicle’s repairs if it has been sent to an approved workshop.
In September last year, the company also extended the free roadside assistance to its policyholders who take comprehensive coverage for their motorcycles (below 250 cc).
“As an insurer, we should be there for our customers. It is as simple as that. While many others have shunned away from such a service simply for not being financially lucrative, sometimes, there is no harm in giving a little more. This is our way of saying thank you to our customers and letting them know that we are here for them in times of need,” said Allianz General’s CEO, Sean Wang.
Hybrid trucks can take 2 vehicles simultaneously
Recently, the company added 5 hybrid trucks to its Allianz Road Rangers fleet, bring the fleet total to 250 tow trucks. The tow trucks are of various types to suit different vehicles. The hybrid truck comes with the combined features of a flatbed carrier and a spectacle lift that can transport 2 accident vehicles simultaneously.
A flatbed carrier features a long hydraulic flatbed that inclines and allows vehicles to be driven or pulled onto the bed for towing, while a spectacle lift or wheel lift tow truck has a metal yoke that hooks up the drive wheels of the vehicle towed. Besides that, the hybrid trucks also carry mini and normal-sized wheel dollies. Furthermore, hybrid trucks can also tow modified or lowered vehicles or vehicles (particularly of continental makes) that may have broken air suspension systems.
The Allianz Road Ranger fleet includes motorcycles so initial assistance can be provided before the tow-truck arrives.
Service enhancement
“Since its launch in 2017, the Allianz Road Ranger accident assistance service has been key for our customers. In looking out for our customers, we continue to enhance the service or our fleet to ensure our service remains first-rate. With the addition of the innovative hybrid trucks, we can serve our customers better, more so should two vehicles insured under Allianz General be involved in an accident,” said Allianz General’s Chief of Claims, Damian Williams.
“With the hybrid trucks, our Allianz Road Rangers technicians are also better equipped to handle complicated towing jobs. So, if a flatbed is required and dispatched to the accident scene, but the parking brake is stuck, the technician can easily deploy wheel dollies and tow the vehicle using the yoke, all with no further delay in service,” added Mr. Williams.
This time of the year usually sees a lot of rain as the northeast monsoon blows through Southeast Asia. It seems that the amount of rainfall has become greater, with recent data showing it to be the highest Malaysia has received. As a result, we see a lot of flooding, even on the west coast which used to be shielded by the Main Range of mountains.
For motorists who have to drive around in rainy conditions (better if you do not), here are some tips that can save your vehicle from any potential damage that could result in massive repair bills.
1. Avoid driving or parking in low-lying areas
Low areas or certain basement parking lots can get flooded during heavy downpours. Your vehicle may then become partly submerged and the water can cause heavy damage to your car, especially to the engine, electrical systems, and interior. So if you can do so, avoid such areas.
2. Avoid driving through tunnels
Do not follow roads into tunnels that lead underground. We don’t have many but there are still some here and there. The risk of being caught in a flash flood is higher when driving into an underground tunnel as you are approaching lower ground that rainwater is flowing to. The speed at which the water level can rise will be surprising and many motorists are often caught by it.
3. Maintain a steady slow speed
If you do attempt to drive through a flooded area, assess the situation or surroundings first. If the level is below half your vehicle’s tyre, make sure to wade through at slow speed by engaging low gear. This helps to create a small bow wave which will prevent the surrounding water flooding into the engine bay or flowing into the exhaust pipe. However, it is also important to not assume that a road you are familiar with is safe as you may not be able to see cracks or sinkholes that have opened up under the water.
4. Your safety is the utmost priority
If your car engine stops suddenly and you are stranded in the car, turn off the engine, gather your belongings and leave the car immediately. Do not try to start your car again as it will lead to more major damage. Quickly move yourself to higher ground or a safer area and stay there until help arrives. Your own safety is more important than the car.
5. Don’t start the car immediately after it has been submerged
If a car has been submerged up to the window level, water would most likely have seeped into the engine, transmission, and fuel delivery system. Don’t start the engine as you’ll just make the damage worse. Immediately seek professional advice after the flood water has subsided or tow your car to your trusted workshop or authorised service centre for your vehicle’s brand.
6. Disconnect your vehicle’s battery
Do not leave your vehicle in accessory mode with the electronics running when you are stuck in a flood. Turn off the engine, open the bonnet and disconnect the battery. Do so only if it is safe as there may also be strong water currents. When the vehicle can be recovered, have the battery examined by a mechanic who can test it to see if the battery is functioning properly.
Be sure the battery is checked by a professional before continuing to drive.
7. Does your vehicle have flood insurance?
Flood damage is not typically covered in motor vehicle comprehensive insurance policies. Therefore such damage will not be compensated by the insurance company. However, owners can add on coverage for flood damage for an extra fee. Many motorists often think that it is not worth spending that little bit of extra money as they may feel that being caught in a flood is unlikely. But you never know and with the change in weather patterns recently, it may be an option to include.
Just like drivers of cars, motorcycle riders are also users of public roads and they also pay roadtax. However, things seem different for them as everything from infrastructure and poorly maintained motorcycle lanes to a lack of roadside assistance appears to ignore their needs which are no different from drivers.
Furthermore, we see most insurance companies giving all the extra benefits to car drivers but most of the time, motorcyclists get just the basic coverage. Not anymore as last month, Allianz General Insurance Company (Malaysia) Berhad introduced free roadside assistance for its policyholders who take comprehensive coverage for their motorcycles (below 250cc).
Nationwide value-added service
According to Allianz General’s CEO, Sean Wang, the company’s introduction of the roadside assistance service for motorcycles means that riders have everything to gain with heightened value-added service. The service, available to Allianz Motorcycle Plus (Comprehensive) and Allianz Motorcycle (Comprehensive below 250cc) policyholders nationwide, includes emergency towing assistance (free for up to 50 kms, round-trip), fuel delivery, battery, and flat tyre service. It will be provided by the Allianz Road Rangers.
“We have all seen motorcycle riders left stranded or worse, involved in an accident, and every single time, it is fellow riders that are at the scene offering assistance. Now, with our roadside assistance services, our own riders know that come rain or shine, we will be just a phone call away,” said Mr. Wang at the ‘Crash, Boom, Bang! Part II #Roger’ Allianz Media Roundtable today.
“As an insurer, we should be there for our customers. It is as simple as that. While many others have shunned away from such a service simply for not being financially lucrative, sometimes, there is no harm in giving a little more. This is our way of saying thank you to our customers and letting them know that we are here for them in times of need,” he added.
Allianz Road Rangers ready to assist
The Allianz Road Rangers service for motor comprehensive policyholders was introduced in the Klang Valley in 2017 as a first within the General Insurance industry. The following year, it was available nationwide.
Taking a leaf out of the existing Allianz Road Rangers service, Allianz General Head of Claims, Damian Williams, said there are the following touchpoints:
♦ 24-hour helpline assistance – in the event of an accident, policyholders can call 1-800-22-5542 to have a technician or tow truck dispatched to their location for assistance, repair work, or to provide towing services.
♦ Allianz Road Rangers Tow trucks – the Allianz Road Ranger will provide riders emergency towing assistance (free for up to 50 kms, round-trip), fuel delivery, battery, and flat tyre service.
♦ E-hailing vouchers – the policyholder will also receive e-hailing vouchers that they can use to get home from the accident site and back to their home (where the service is available).
According to Mr. Williams, it was crucial that the service was able to nullify a rider’s pain points and offer flexibility in terms of towing options. “Our goal was simple – provide quick solutions to common issues like fixing a flat tyre or delivering petrol that would allow riders to continue their journey and should the need arise, provide them with towing assistance to get them to a workshop or their preferred location and get them home safely,” he explained.
“Everything that we do at Allianz General, at the end of the day, is about our customers, and this service is solely about taking care of the rider. So we took extra care in ensuring that our touchpoints offer thoughtful assistance,” he added. “Plus, having an established towing assistance service in the Allianz Road Rangers meant we already have 190 tow trucks at our disposal and we could hit the ground running.”
How to lower motorcycle accident numbers
At the roundtable, there was also discussion about the best way to curb the high rate of motorcycle accidents is with rider attitude and cultural change, according to the Malaysian Institute of Road Safety Research (MIROS). On top of being grossly underserved, motorcyclists also suffer the most accidents and fatalities in Malaysia. According to the Royal Malaysia Police (PDRM) statistics for 2020, while road accidents dropped by 26% last year, largely due to movement restrictions during the COVID-19 pandemic. Yet there were still 418,237 road accidents and 4,634 fatalities, with most accidents involving motorcyclists with 3,118 deaths.
MIROS Director of the Road User Behavioural Change Research Centre, Azhar Hamzah, revealed that on average, motorcycle accidents stood at around 20%, but motorcyclists and pillion passengers were most affected in terms of injuries, with more than 60% of the deaths each year. He also quoted a recent PDRM statistic which indicated that the highest percentage of motorcycle deaths, at 36% percent, involved riders aged 16-25 years old.
“Users (80.6%), the environment (13.2%), and vehicles (6.2% percent) are the three main factors involved in accidents. The changing of behavioural habits and heighten awareness of safety is the quickest way to get rides to be safer on the roads. Simple, doable changes such as speed control, adhering to traffic rules like stopping at red lights, and just overall riding etiquette can make a huge difference,” said Encik Azhar.
“Motorcycles provide very little physical protection. So, for injury prevention, protective equipment like a proper-fitting, SIRIM-approved helmet can safeguard the head on impact while, riding jackets and closed-toe footwear can help reduce injury risks such as abrasion. These are readily available items that riders should consider incorporating into their ride to keep themselves safer,” he said.
Although insurance coverage for your motor vehicle is compulsory if you want to use it on public roads, the business is competitive and insurance companies offer all sorts of extra benefits if you buy a policy from them. However, one of the best for motorists would be the insurance coverage offered by the car company that sold them their new vehicle. Not all companies do this and it is not their line of business, but they work with their panel of insurance companies to offer their customers the best possible package.
The Honda Insurance Plus (HiP) plan is an example. Introduced in 2002, it is exclusively for Honda owners and provides comprehensive protection and coverage. Working with its panel of 8 insurance companies, Honda Malaysia recently enhanced the HiP package to offer Rescue, Protection and Savings.
“As a car owner myself, I understand the importance of having the peace of mind knowing that my passengers and I are well-protected throughout the ownership of the car,” said Honda Malaysia’s Managing Director & CEO, Toichi Ishiyama. “The all-inclusive and wide-ranging HiP is the best insurance plan for Honda owners because it is developed by Honda, for Honda customers and with our Honda cars in mind.”
“At Honda Malaysia, we are dedicated to offering competitive and comprehensive protection packages for our customers and this HiP plan has been designed to be one of the best in the industry. We believe that this exclusive insurance plan will be able to provide the assurance to Honda owners that they and their cars are well taken care of and they are able to fully experience the ‘Joy of Owning’ and ‘Joy of Driving’ a Honda car,” Mr. Ishiyama explained.
Rescue
The first benefit – Rescue – has a rescue team on call 24 hours a day, 7 days a week. Benefits include 24/7 towing assistance in case of accidents, breakdowns and floods, and the vehicle will be sent to any Honda authorised Body & Paint Centre within a 450 kms round trip from the location. Roadside repair service offers free labour of up to RM200 per event, excluding the cost of spare parts (if needed).
Apart from that, the 24/7 roadside repair services are also available for unexpected situations such as a flat tyre, replacing a flat battery or even running out of fuel. HiP policyholders can also be assured of efficient assistance for hassle-free claims when they are necessary to be made.
Protection
Through the Protection benefit, HiP policyholders are promised high quality workmanship on all body and paint repairs at all Honda Authorised Body & Paint Centres. Only Honda genuine body and parts replacements are used and these come with a 6-month warranty (or maximum of 10,000 kms).
The good thing about having HiP is that if a vehicle is sent to an authorised Honda Body & Paint Centre for repairs, pre-approval of the claim can be faster if it is estimated to be below RM20,000.
All authorised Honda service centres and Body & Paint Centres handle repair work under the Honda Insurance Plan.
Besides that, HiP policyholders will be given medical assistance such as medical referral and arrangement of appointments, dispatch of medications which are not available locally, and medical evacuation or repatriation, if required. As an additional new protection benefit, each HiP policyholder will now get Personal Accident Coverage of up to RM15,000 in the event of Accidental Death or Permanent Disability in the Named Vehicle accident.
Savings
Honda Malaysia has made sure that those who take HiP will enjoy savings and the best value for their premium paid. The extended coverage terms and better savings from replacement costs will help to ease financial burdens.
The existing HiP 100% insurance payout based on the agreed value if car is stolen or severely damaged in an accident for the vehicle age of up to 10 years (since original registration) is now upgraded to 13 years. Other newly introduced privileges include Unnamed Driver whereby HiP provides coverage for all drivers under private registration with no additional names and compulsory excess payment required; flood allowance of up to RM1,500; special relief allowance of RM1,500 in the event of car theft or total loss; and RM1,000 for lost key reimbursement.
Genuine Honda parts are used for repair work and when new parts replace old ones, there is no betterment charge (terms and conditions apply).
Apart from that, there’s 100% coverage for 10 years with no betterment fee imposed when old parts damaged due to accident are being replaced with new original parts.
HiP is available to all existing and new Honda owners who can start their first policy from the time they purchase a new vehicle or when they need to renew their insurance. More information is available at www.honda.com.my.
