In line with the recent Budget 2024 announcement, the Malaysian government is set to implement a service tax increase from the current 6% to 8% starting March 1. While certain categories like F&B and telecommunications are exempt, consumers, especially motorists, are bracing for increased costs across various sectors.
One noticeable impact will be on vehicle servicing and repairs, as these do not fall under the exempted categories. Come March 1, vehicle maintenance costs are expected to rise. It’s important to note that the service tax in this context applies solely to labour charges and not to the cost of parts.
Beyond vehicle maintenance, motor insurance is another area where Malaysians can expect to pay more due to the 2% increase in service tax. Although not widely highlighted in the news, all business-to-consumer general insurance or takaful, excluding medical insurance or medical takaful, will be subject to the service tax hike.
Touch ‘n Go Group has launched ParkInsure, a unique insurance/takaful product for users who utilise the Touch ‘n Go card for parking. For just RM5 per month, users can access this coverage seamlessly through the GOprotect digital hub on the Touch ‘n Go eWallet platform.
They can choose between takaful from Zurich General Takaful Malaysia Berhad or conventional insurance from Allianz Malaysia Berhad. This offering provides affordable coverage for personal accidents, enhancing the convenience and security of Touch ‘n Go transactions.
ParkInsure comes with several helpful benefits:
Accidental Death or Disablement Coverage: If an accident happens within the car park compound leading to permanent disablement or accidental death, users can get reimbursed up to RM70,000.
Snatch Theft Inconvenience Benefit: In case of snatch theft within the car park area, users can receive up to RM1,500 to cover inconveniences.
Forcible Car Break-Ins: If a car break-in occurs in the car park, users are eligible for reimbursement up to RM1,500.
Key Reimbursement: If a user’s car key is stolen or damaged during coverage, a reimbursement fee of up to RM200 is provided.
These benefits provide protection and support for various situations that might happen in the car park, making ParkInsure a helpful addition for Touch ‘n Go card users.
In the conventional plan, users get extra benefits like up to RM200 for transportation charges to the hospital due to a car park accident and RM10 if their enhanced Touch ‘n Go card is lost to snatch theft in the car park.
For the takaful plan, users receive a different benefit. They can get up to RM200 for inconveniences if their car is damaged in a car park accident. These additional benefits are meant to provide more support and convenience for users in different situations while using their Touch ‘n Go cards for parking.
Touch ‘n Go eWallet users can subscribe to the ParkInsure insurance/takaful plan in under 3 minutes using GOprotect. They have the choice between takaful and conventional plans. The process ensures hassle-free claims through the insurers’ 24/7 claim hotline. Additionally, users can conveniently manage and access their policies/certificates through the “My Policies” tab on their eWallet app, streamlining their experience.
Motorists insured by Allianz General Insurance Company (Malaysia) Berhad will know about their Road Warrior 24/7 roadside assistance benefits which will be most appreciated when there’s a breakdown. Now, the same support is also available to operators of goods-carrying vehicles as a supplemental benefit.
Launched today, the Allianz Truck Warrior provides roadside assistance to Allianz Goods Carrying Vehicle (comprehensive) policyholders involved in accidents or breakdowns. It is the first coverage of its kind in Malaysia and has only been available since 2023 started.
Allianz General Insurance Company (Malaysia) Berhad (Allianz General) is seeking PIAM Approved Repairers Scheme (PARS) workshops nationwide via open tender to join its panel of Allianz Authorised Repairers for 2023 and 2024.
The last time the company revamped its panel workshops was in 2020, during which time 195 PARS workshops were engaged through an open tender process.
The Allianz Authorised Repairers are an integral part of the company’s Allianz Road Rangers 24-hour accident service, which has served over 330,000 customers since its launch in 2017.
For the protection of all road-users, there is a law which is applied in most countries for all motor vehicles and that is insurance coverage. In order to use a motor vehicle on a public road, it must have insurance coverage that provides for compensation to other parties involved in an accident with it. The minimum is what is known as third-party insurance which compensates only other parties but not the vehicle owner.
Under Section 90 (1) of the Malaysian Road Transport Act 1987, the owner of a vehicle operated on public roads must have insurance coverage for the vehicle. Not doing so means there can be a fine of up to RM 1,000 and even going to jail for up to 3 years. So every year, motorists (and motorcyclists) renew their insurance policies which is also required in order to get another year of roadtax. But there are some who either forget (a weak excuse) or simply do not have insurance coverage for their vehicle, perhaps because they don’t want to spend the money (or cannot afford it).
All vehicles used on public roads must have insurance coverage, which is also mandatory in order to obtain for roadtax renewal.
Compensation for victims
It may seem like that’s their problem if their car is involved in an accident and has to be repaired since they will have to pay from their own pocket. But what about the other party, if they crashed into another vehicle or worse, knocked someone down? If their vehicle is insured, then the other party can claim for compensation from the insurance company. If there is no insurance coverage, who to claim from? The only people who get anything will be the police who collect the fine, which does not go to the victim anyway.
There are no statistics available to show how many vehicles involved in accidents have had no insurance coverage but for someone who is the victim involved, it can be a nightmare since there is no one to claim from. You could get a lawyer to sue the vehicle owner but that will take time and money and he might not be able to pay too.
The Motor Insurers Bureau of West Malaysia
Fortunately, in Malaysia, there is a way to get some form of compensation and that is from the MIB (no, not the Men in Black!) which is the Motor Insurers Bureau of West Malaysia. This bureau, which is not an insurance company, was established in January 1968 after an agreement was signed between the general insurance companies and the Transport Ministry to provide compensation for accidents involving uninsured vehicles. Apparently, the agreement includes Singapore and East Malaysia as well.
The aim of establishing the MIB was to ensure that victims get some compensation and assistance for their injuries resulting from the accident if the vehicle was uninsured.
The MIB will receive claims for compensation but as with any claim, there are procedures to be followed and the claim must be made within 3 years from the date of the accident. The claimant must also notify the MIB about the case within 30 days of filing the action and must furnish all the relevant documents. These would be a description of the accident, police reports, medical report and so on. Details of the vehicle that hit you or your vehicle must also be provided.
However, an important thing to note is that the compensation is for injuries you sustain to your body and there is no compensation given for repairs to the damaged vehicle. And if your phone was damaged as a result of the accident, that too won’t be compensated by the MIB. The aim of having the MIB is to ensure that victims are still provided with compensation to help them with medical expenses, which could be substantial in some cases.
The compensation from the MIB does not cover repairs for the damaged vehicle or for losses or damage to any property inside.
How to contact the MIB
The address of the Motor Insurers Bureau of West Malaysia is Wisma PIAM, No. 150-3, 3rd Floor, Jalan Tun Sambanthan, Brickfields, 50782, Kuala Lumpur. Phone: 03-2274 7395. You do not need a lawyer to submit your claim, but you will be asked to make a payment of RM100 to cover their admin and investigation costs.
During this festive season, millions of motorists are travelling up and down the highways. Most will reach their destinations safely and enjoy the reunion with family and friends, or the long-awaited holiday.
But there will be some who are unfortunate to have an accident, or their vehicle has a breakdown along the way. That certainly would spoil things but for those who have insurance coverage from Allianz, things won’t be so bad as they will be able to get assistance easily from the Allianz Road Rangers. All they need to do is call 1800-22-5542 (24/7).
Free service
The Allianz Road Rangers are a support team which provides roadside assistance for cars as well as motorcycles. It’s available free of charge to policyholders of vehicles registered for private use and for motorcycles with comprehensive insurance policies.
Between April 30 and May 8, the Allianz Road Rangers will be stationed around several R&Rs along the North-South Expressway, Kuala Lumpur–Karak Expressway and East Coast Expressway which have seen the highest volumes of traffic.
Specifically, the R&Rs are at Gurun (Kedah), Tapah (Perak), Ulu Bernam (Tanjung Malim, Perak), Ayer Keroh (Melaka), Yong Peng (Johor), Genting Sempah (Karak Highway), Gambang and Maran (Pahang), Gua Musang (Kelantan), and Paka Arah (Kuala Terengganu).
First such iniative by Allianz
“This is a first of such an initiative. We know how everyone has been looking forward to celebrating this Hari Raya Aidilfitri and will be travelling to their hometowns and out of the Klang Valley. So, we have mobilised our tow-trucks from our Allianz Road Ranger fleet to be strategically located to assist our customers,” said Allianz General Chief Claims Officer, Damian Williams.
“Our goal with this initiative is to reach customers as quickly as possible when they need assistance and to help make their journey a smooth one,” he added.
Comprehensive assistance provided
The Allianz Road Rangers began in 2017, initially operating in the Klang Valley before going nationwide. 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.
The Allianz Road Ranger fleet includes a motorcycle team to reach the vehicle earlier and provide initial assistance before the tow-truck arrives.
Other benefits from Allianz include a claims concierge service at police stations, e-hailing transportation services, Allianz Motor Own Damage (OD) claims and vehicle delivery. Damaged vehicles will be brought to an Allianz Authorised Panel Repairer or to a franchise workshop upon request. Motorists can also specify a preferred location to send the vehicle to (within the specific distance) instead of having to collect it from the panel workshop.
The entire Allianz Road Rangers journey — from accident assistance service to claims, vehicle repairs, and the selection of workshop repairers — is a structured and transparent service. The service is among the initiatives taken by the company to prevent corrupt and unethical practices that occur in the insurance industry.
Victims of the recent floods will face major expenses on repairs and replacing many things. It is going to be a stressful time for everyone, and each will have suffered in varying degrees. Both the government and private sector are doing whatever they can to ease the burden. Apart from providing financial and other forms of aid for the affected, there are also special provisions made for motorists whose vehicles or documents were damaged or lost.
Free replacement of JPJ documents
The JPJ will not charge for replacement of driving licences, Motor Vehicle Licences and Vehicle Ownership Certificates for those affected by the floods. They must however make a police report first which must then accompany their application. Anyone who loses the original documents will need to bring a copy of the police report or Disaster Victim Registration Form issued by the District Office or the Social Welfare Department as evidence.
JPJ Mobile Service van
Meanwhile, the police advise owners of flood-damaged vehicles to make the police reports themselves and not use third parties (such as workshop or tow-truck representatives). They should make sure they have pictures of their vehicles to show the condition as well as the details of the tow-truck company and where the vehicle was taken to.
Specific coverage for floods necessary
While specific flood coverage is needed to make a claim from insurance companies, a police report will protect a vehicle owner so that the workshop and tow-truck company are on record.
Regarding insurance claims, many will not be able to claim from insurance companies if they do not have specific coverage for flood damage. Such cover is not typically included in comprehensive insurance policies and is an optional add-on for an extra charge. In many cases, motorists regret not doing so and then make sure they add it but unfortunately, the damage is already done this time. So do give serious thought to this additional coverage. It used to be thought that living on the west coast is fairly safe as the major floods are on the East Coast but with climate change and other new conditions, it appears that even the west coast is likely to see flooding in future.
Standard insurance coverage does not cover floods and motorists can add on such coverage (including windscreen damage) for an extra charge.
ETIQA waives police report requirement
With any insurance claim, a police report is required to confirm damage and other details which the police will investigate. The same applies to claims for flood damage repairs. However, for motorists who have ETIQA as their insurance company and have Special Peril coverage (which includes floods) with their insurance policy, the police report requirement is not necessary. The owner should take pictures of the vehicle at the scene of flooding and the numberplate must be visible.
This waiver came into effect from December 18, 2021 and will remain effective until further notice. So that’s one less headache if you are an ETIQA policyholder but it is only for those affected by floods.
Allianz goes to affected areas
As for other companies, many have assured their policyholders that they will process claims as fast as possible. Allianz, for example, has positioned Allianz-branded 4x4s and a team of adjusters on stand-by in Selangor and Pahang to attend to customers promptly. The 4x4s and Claims Caravan will be routinely deployed to other locations in other affected states to enable a swift and seamless claims process.
A Ford Ranger used by the Allianz team enables personnel to reach many areas in affected states to help process claims faster.
While most will think motorists with passenger cars suffering flood damage, commercial vehicles are also affected. Perhaps the bigger ones might not be damaged but there will be many vans and lorries at depots which are likely to have been flooded. They will need repairs too and being important in the logistics industry, they need to be back in operation as quickly as possible so that much-needed food and other items to help victims can be transported.
Keeping transportation industry moving
“The transportation industry is essential and among the more vital economic activities for a business; having a single vehicle off the road for a period of time would cause some sizeable impact,“ said Arman Mahadi, Managing Director of the Daihatsu Malaysia Group which sells a large number of commercial vehicles.
For this reason, the company has initiated the Daihatsu Flood Relief Program which aims to increase fleet uptime in running an efficient operation and ensuring business remains profitable. “The company is deeply saddened and concerned over the well-being of those hit by the disaster. Therefore, we have a business operation recovery process specifically for our Daihatsu owners and corporate fleet customers,“ he said.
Available to all owners of Daihatsu vehicles affected and damaged by the floods, the Daihatsu Flood Relief Program started on December 22 and will be on till February 28, 2022. Available at all authorized Daihatsu service centres nationwide, owners can get a Towing Service Subsidy of up to RM100, up to 40% off selected spare parts with a 1-year /20,000-km warranty (whichever comes first), 20% off on labour services and free vehicle inspection and Door-to-door Daihatsu Mobile Service. Some terms and conditions apply, and the Mobile Service team is subject to availability and location.
The pandemic has affected millions of people worldwide in various ways, and Malaysians have not escaped either. Jobs have been lost, businesses have had to shut down and for many, incomes have fallen drastically. So almost everyone would like to find ways to save whatever money they earn or have.
Etiqa, the insurance people, offer help in this effort by introducing their usage-based ‘Drive Less, Save More’ motor insurance and takaful add-on that offers drivers rebates of up to 30% on their premiums or contribution based on vehicle mileage clocked.
As many motorists are travelling less nowadays because they work from home or prefer not to go out too much to avoid crowds, their vehicles have less mileage. This can benefit them not only in saving fuel but also in their insurance costs with companies like Etiqa.
This optional add-on is free, with rebates paid whenever a claim is made at a customer’s convenience, subject to a minimum of 10 days between each upload. The add-on is available to all customers who take Private Car Comprehensive insurance coverage.
This new offering is especially good for those working from home, the ‘new normal’ brought on by the pandemic’s restriction on movements. And while they drive less, they can still have the same peace of mind as the coverage is the same, including compensation for loss of the vehicle in the event it is stolen.
Cash rebates will be calculated on a daily basis, as a percentage of a customer’s basic premium or contribution (minus No Claim Discount) as per the table below:
The ‘Drive Less Save More’ add-on is available when purchasing new or renewing motor insurance or takaful. To qualify for the rebates, customers just need to submit a picture of their vehicle numberplate as well as of the car odometer (the one which shows the mileage) via the Etiqa Smile mobile app.
Subsequently, during the policy or certificate period, customers will need to upload an image of their odometer reading as often as they like, with a minimum gap of 10 days between uploads in order to obtain their rebates. The images will be used to confirm the mileage driven and to calculate the corresponding rebate amount.
To qualify for the rebates, policyholders must periodically send an image of the odometer to verify the mileage travelled.
In a joint statement, Shahrul Azuan Mohamed, CEO of Etiqa General Takaful Berhad and Fukhairudin Mohd Yusof, CEO of Etiqa General Insurance Berhad said: “We recognize the fact that there has been a reduction in driving activities during the COVID-19 pandemic, with a significant number of people working from home. Driven by Etiqa’s vision to make the world a better place, we would like to give back to those who have been using their vehicles less by rewarding them with rebates on their motor insurance premium or takaful contributions. After all, by driving less we can also do our part to save the environment,” they added.
No one wants to have an accident but sometimes it is unavoidable, and even if you are not seriously injured, your vehicle is likely to be damaged. After getting over the initial shock comes the part of having to negotiate and make on-the-spot decisions as numerous touts and tow-truck operators suddenly appear around you. And then there’s the process of making a police report and then an insurance claim.
Each day, many motorists go through such experiences and in order to reduce the stresses, diligently choosing the right motor insurance coverage and company is important. It can make all the difference, especially as many insurance companies offer value-added services as well. No longer do you just get coverage for loss or damage but additional benefits as well.
According to Allianz Malaysia Berhad’s CEO, Zakri Khir, the solution lies with car owners being diligent in understanding the importance of comprehensive insurance coverage and choosing services that resonate best with their needs.
“Anyone who has been in a motor accident will tell you what a painful experience it can be when it comes to settling claims and getting repair works done on time. Should things turn sour, more often than not, insurers are pegged as the bad guy, seemingly profiting from another’s misfortune,” he said.
“However, what most fail to see is that accidents are a litmus test for us insurers and the promise we sell to our customers that we will be there for them in their times of need. Not delivering on those promises is a cardinal sin. The onus is on the insurer to honour its promise to its customers and at Allianz Malaysia, we are about doing things right by you, providing the services that you need at the times that you need them the most,” Encik Zakri said.
“No one ever thinks about accidents when renewing their insurance and road tax. Moreover, you want it to be the quickest transaction, so you can legally drive again. But the reality is accidents happen when we least expect them. So it is important to understand how good motor insurance and the services offered by an insurer can help you in these circumstances. Opting for the bare minimum is never the answer because you are inadvertently depriving yourself of the adequate protection you deserve,” advised Damian Williams, Head of Claims at Allianz General Insurance Company (Malaysia) Berhad.
Although the Movement Control Orders (MCO) saw fewer vehicles on the road last year, the Royal Malaysia Police (PDRM) reported that there were 418,237 road accidents reported in 2020. The Allianz Road Rangers, the company’s free accident assistance service for its customers, provided roadside assistance to 67,000 customers nationwide in 2020, with an average response time of 30 minutes for tow-truck services in the Klang Valley.
Launched in the Klang Valley in 2017 and available nationwide since 2018, the Allianz Road Rangers service includes 24-Hours Helpline Assistance; the Allianz Road Ranger fleet (First Response Bike Brigade and Allianz Tow Truck; Claims Concierge Service; e-hailing Voucher; Claims Express Approval, and Vehicle Delivery. To date, the fleet has 190 vehicles, with 30 motorcycles as well.
The Allianz Road Ranger fleets includes motorcycles so initial assistance can be provided before thw tow-truck arrives.
Last year, in a move to enforce transparency and improve its customer journey experience, Allianz General revamped its panel of Authorised Repairers to consist of PIAM Approved Repairers Scheme workshops, via an e-tender. While the move had a ripple effect, the company now has 195 panel workshops nationwide. Besides that, the company also offers a 2-year warranty for repair work carried out (including the spare parts used) on vehicles involved in accidents.
Stopping motor claim fraud
Encik Zakri also revealed that motor claims have become a billion-ringgit scam in Malaysia. Citing an ecosystem that breeds fraud and corruption as one of its main reasons, there is a strong call for better awareness and he issued a ‘call to arms’ for other industry players to play their role in stopping corrupt practices.
“There are many parties that monetise motor claims to their own benefit under a cloud of lack of clarity and mystery surrounding the whole motor claims process that most customers are not wise to it. This gets magnified when customers do not know their rights as consumers – that your insurer is there to serve your needs, not the other way round,” said Encik Zakri.
In developing the Allianz Road Rangers service and its touchpoints, the focus was on serving customers and minimising fraud. “We knew we had to buck up to remove any element or opportunity for fraud and pay out genuine claims. Our customers must know that we will not partake nor condone any devious activity. The entire Allianz Road Rangers journey from the accident assistance service to claims, vehicle repairs, and the selection of workshop repairers is our way of having a structured delivery of service that is visible to our customers,” he said.
Since the Movement Control Order (MCO) was introduced in March 2020, motoring has reduced for many people. Apart from the periods when interstate travel was forbidden, commutes to work are also less with work-from-home (WFH) still in effect and schools have been closed. Furthermore, to reduce spread of COVID-19, the authorities urge people to remain at home more and only travel out for essential purposes.
This means that motor vehicles are being used less and as the mileage is lower, the question which the good people at Aurizn Malaysia wondered is whether insurance premiums could be reduced in this situation.
First mileage-based car insurance plan
As the insurance industry has been progressively deregulated, it is now possible for insurance companies to vary premiums and Pacific & Orient Insurance Co. Bhd (POI) is willing to do so with what is the first mileage-based car insurance plan in Malaysia. Conceived in partnership with Aurizn Malaysia, it is known as the EvoClub Insurance Powered by PrOmilej and offers motorists unprecedented savings and flexibility
The benefits, which would be especially welcome in this challenging period, are as much as 40% savings on car insurance premiums as well as flexibility to make payments in up to 3 parts without incurring additional charges.
Three plans
The pioneering ‘pay as you drive’ concept allows motorists to start off with Plan 1 that offers 40% up-front savings for an allocated mileage of 5,000 kms. Plans 2 and 3 offer 20% and 10% savings for 10,000 kms and 15,000 kms mileage limits, respectively. For maximum flexibility, consumers can easily upgrade plans by simply topping up the difference between them. Each policy is allowed a maximum of two top-ups.
“We are very proud to have this opportunity to partner with POI to bring this innovative insurance product to Malaysian motorists and car enthusiasts. Firstly, low-mileage cars can enjoy significant savings on insurance costs, and you get to multiply these savings if you own multiple cars,” said Bobby Ang, Editor-in-Chief of Aurizn Malaysia.
“And because this plan offers the flexibility of upgrading between plans twice a year without incurring extra charge, consumers can use this to stagger their car insurance to a maximum of 3 payments by just paying the difference between plans. We feel these options come in very handy as we navigate the challenges of this pandemic with many of us now travelling less and some even earning less as well,” he added.
For motorists that exceed the allocated mileage without topping up, the policy will continue to cover for third-party bodily injury or death and third-party damage only. This ensures that the vehicle continues to receive the minimum required coverage for the vehicle that is required by Malaysian law to remain road legal by the Road Transport Department (JPJ).
Online applcations accepted
Interested in this money-saving approach to insure your vehicle? You can do so easily online (www.evoclubinsurance.com) or via POI’s toll-free line 1-800-88-2121. The only additional step required in the buying process compared to other insurance plans in the market is to upload a picture of the car’s odometer to the website. A vehicle inspection is not required.
EvoClub Insurance Powered by PrOmilej is another initiative of EvoClub created to give motorists a whole car buying and ownership experience. Complemented by the meticulous car reviews of the EvoLTN editorial team to serve as buying advice, other services offered through EvoClub include used car pre-purchase inspection service, Extended Warranty, and trusted workshops.
“Our ultimate aim is to create an ecosystem where we help car buyers and owners every step of the way by starting from car buying advice and then providing a support system that takes care of all their car ownership needs,” Bobby said.
