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.
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.
Though it’s not apparent to the general public, the motor insurance business is a competitive one and like other businesses, the way to attract more customers is to offer value-added services or benefits. This can make it confusing or tiring for motorists to check each company’s offerings, and they may not get the best deal.
TREVO, a people-to-people car-sharing marketplace, can help motor vehicle owners with TREVO Guard, a motor insurance renewal service available via the TREVO app. With TREVO Guard, the policies offered are curated to focus on those with special policy features catering to the mandatory insurance needs of owners in the modern P2P car-sharing and e-hailing ecosystem. Currently, new motor insurance policies from Allianz are available via TREVO Guard.
“This new service builds on our R&D efforts to continuously offer innovative services and features to customers and tap on the capacity of our apps to serve as one-stop sources for everything drivers need to reduce the hassle of car ownership. Car owners in Malaysia often lead hectic lifestyles, so we wanted to make motor insurance renewal easier, faster and better via a convenient service plus added perks – to further free them from the worries that come with car ownership,” said Leon Foong, Group CEO of SOCAR and TREVO Malaysia.
“This service is timely as demand for contactless renewal solutions has gone up exponentially since the rise of the pandemic. With our TREVO Guard renewal service, all users can also easily offset their insurance premiums by making their car available for sharing on the TREVO platform. To further reinforce the spirit of car-sharing, we also offer all customers a certain number of free car replacement days on our SOCAR and TREVO platforms when their cars are in the workshop,” he added.
Perks for early adopters
As an introductory offer for the first 1,000 TREVO Guard renewals, vehicle owners will enjoy a number of perks, courtesy of TREVO. These include a Free Temporary Replacement Car of the same model or similar car segment for up to 7 days per year if the insured vehicle cannot be driven, as well as the complimentary use of a personal ‘buddy driver’ to drive them in their own car for 2x 2-hour trips per year. Meanwhile, TREVO Hosts who are among the 1,000 new renewals will also receive a RM128 cash rebate.
“At TREVO, we’ve seen more and more people embracing the P2P marketplace in the 14 months since we launched. From the Klang Valley to our expansion into Penang, Kota Kinabalu and Johor Bahru, we’ve grown our membership to 121,000 people, with more than 4,600 cars listed. This is a clear indication that while private car ownership remains popular among Malaysians, they also want new ways to alleviate the burdens and hassles that come with owning a car,” noted Susan Teoh, CEO of TREVO Malaysia.
“To improve the overall experience of car ownership with TREVO Guard, we are going beyond making motor insurance renewals more convenient for Malaysian car owners, by offering additional peace of mind through attractive benefits such as Free Temporary Replacement Cars, complimentary personal driver service for your own car, plus rebates for TREVO Hosts who are early adopters,” she said.
Interested? The first thing to do for renewing your motor insurance policy is to download the TREVO app and register for a TREVO account (of you have not already done so). Then, using the app, renewal can be done via TREVO Guard. The process is easy – just log in with the app and provide the vehicle registration number and NRIC number (or passport number for foreign nationals), and a motor insurance quote will be sent within 24 hours.
AIG Malaysia walked away with two motor insurance awards, “The Fastest Estimate Claim Approval Time for Own Damage Claims 2017” and “The Most Accurate Average Estimate to Approval Amount in 2017” at the Motordata Research Consortium (MRC) Industry Awards event, Motor Insurance Moving Forward, recently. The awards by MRC were based on the fastest turnaround time and most accurate claims estimates for vehicle claims, for which AIG has been recognised an unprecedented five times since 2011.
Incorporated in 1998, MRC is the only concessionaire appointed by the General Insurance Association of Malaysia (PIAM) with the endorsement of Bank Negara Malaysia (BNM) to standardise and improve motor vehicle claims in the insurance industry. The organisation uses an industry database of motor claims performance data to benchmark and reduce subjectivity.
Antony Lee, CEO of AIG Malaysia Insurance Berhad, said the awards are a recognition of AIG’s strong reputation as a trusted insurance provider that has focused on the need to service our customers reliably and efficiently. “We are honoured to have set a new benchmark for claims processing, in order to ensure best in class service for our customers. With the liberalisation of the motor insurance market, insurers will have to raise their standards to meet the needs of increasingly well-informed consumers to remain competitive,” he said.
“AIG celebrates our global centennial anniversary this month – an important milestone and a testament to our history of taking care of our customers, which we plan to continue doing for the next 100 years. Our claims services form the backbone of our #AIGJagaYou promise, which we aim to safeguard for all Malaysians. As we mature as a society, AIG will leverage our expertise to formulate even more relevant solutions that fit the needs and lifestyles of our customers.” he concluded.
For more information on AIG Malaysia, please visit www.aig.my.
Berjaya Sompo Insurance Berhad (‘Berjaya Sompo’), a renowned general insurance provider in Malaysia announced its plans recently to become one of the top five general insurance providers in Malaysia. The brand aims to achieve this by developing a detailed growth agenda with key focus areas identified. With a growing network of 20 offices and 2,800 agents nationwide, Berjaya Sompo is committed to being the leading insurer of choice by providing quality solutions and world class services in the best interest of its customers.
(L-R) Mr. Stuart Chua, Chief Distribution Officer of Berjaya Sompo Insurance Berhad, Mr. Tan Sek Kee, Chief Executive Officer of Berjaya Sompo Insurance Berhad, Mr. Futoshi Hanahara, Deputy Chief Executive Officer of Berjaya Sompo Insurance Berhad
Customer Centricity…
Customers are at the heart of Berjaya Sompo and its approach to customer experience is a vital component of enabling the brand to move towards greater heights in Malaysia. Mr. Tan Sek Kee (below), CEO of Berjaya Sompo said, “Customer feedback is key to product innovation and this allows us to incorporate solutions into products that customers value and want. We execute this by listening to customers and gathering data trends through consumer surveys and market research. Ultimately, Berjaya Sompo is working towards improving the overall experience and journey for all customers across different touch points.”
More…
Berjaya Sompo wants to make insurance simple to understand for the average consumer. As such, it has embarked on the following initiatives:
Thematic Brand Campaign: Silent Guardians
Berjaya Sompo’s latest thematic brand campaign, called ‘Silent Guardians’ is a unique take on storytelling about how Berjaya Sompo aims to foster closer relations with all its stakeholders, leveraging on the brand’s Japanese heritage and history, from Japan to the world since 1888.
Berjaya Sompo is raising up its army of heroes through its ‘Silent Guardians’ via the use of Japanese warriors, ninjas, samurais, sumo wrestlers, karatekas, and kendokas – protecting Malaysians everyday, even without realising. The thematic brand campaign incorporates unique humour to highlight the importance of being insured so that Malaysians are able to live their daily routines freely, without a worry.
Berjaya Sompo’s spokespersons with mascot ‘Sompony’, the ’Silent Guardians’ and Peter Davis, (3rd from left) Mr. Stuart Chua, Chief Distribution Officer of Berjaya Sompo Insurance Berhad, (4th from left) Mr. Tan Sek Kee, Chief Executive Officer of Berjaya Sompo Insurance Berhad, (2nd from right) Mr. Futoshi Hanahara, Deputy Chief Executive Officer of Berjaya Sompo Insurance Berhad
Sompony: Berjaya Sompo’s Adorable Mascot
Recently, Berjaya Sompo introduced its latest and adorable mascot, Sompony. The brainchild of Berjaya Sompo’s parent company, Sompo Holdings (Asia) Pte. Ltd. (‘SOMPO’), Sompony is a hero, helper and trustworthy companion that Malaysians can count on to guide them as they navigate through Berjaya Sompo’s products and services.
Used across its markets in Malaysia, Indonesia, Thailand and Singapore, Sompony was created to reshape how the brand connects with consumers in a more human, light-hearted and relatable manner. Sompony adds value to SOMPO with successful character building. It helps internal stakeholders and agents in their storytelling efforts as they educate customers and explain about the unique products and services that Sompo offers.
Product Innovation: SOMPO Motor
Understanding the consumer mindset which changes over time, as well as in response to recent developments regarding motor detariffication in Malaysia, Berjaya Sompo evolves accordingly and continuously looks at ways to innovate and develop solutions that meets the needs of today’s consumer. One example of this: the all-new SOMPO Motor.
SOMPO Motor is a comprehensive motor insurance for car owners which reduces the overall add-on costs without going through the tedious task of including add-on benefits. Further, it has add-on benefits that provides a peace of mind to drivers which include better coverage for older vehicles and full coverage against natural disasters.
The new basic benefits included in SOMPO Motor are as follows:
Special perils coverage, where claim amount does not exceed RM10,000 or 20% of Sum Insured, whichever is lower,
Coverage for all drivers,
Repairs warranty for 12 months,
Emergency towing cost of RM300 following an accident.
“SOMPO Motor has reduced the hassle of going through commonly included add-ons for a comprehensive private car insurance by including them in the basic benefits. New add-on benefits also include better coverage for older vehicles and full coverage against natural disasters. We welcome the implementation of motor detariffication as it enables Berjaya Sompo to compete on a level playing ground, giving the spotlight to the true hero: SOMPO Motor. With this product, our main focus is enhancing the base level features and service level. We want to ensure we have a product that our customers find useful and beneficial,” said Mr. Stuart Chua, Chief Distribution Officer of Berjaya Sompo.
Consumers may also opt for new additional benefits such as full special perils coverage, unlimited towing costs within Malaysia, and waiver of betterment for vehicles up to 15 years. Another new feature of SOMPO Motor is that it provides consumers with the option to choose the Voluntary Excess of the Policy, ranging from 0% to 3% of the sum insured. Voluntary Excess of the Policy gives consumers the option to pay out of their own pocket for each claim, up to 3% of the claim amount, in exchange for a lower premium each month.
In addition, Berjaya Sompo is collaborating with esteemed car brands such as Honda Malaysia, Mazda Malaysia, and Nissan Malaysia to provide bundled insurance packages that are tailored to the needs of car owners.
Digitalization of Berjaya Sompo
In today’s digital-first world, consumers are now expecting and consuming information faster than ever and we need to constantly innovate to stay ahead.
Understanding the consumer mindset, Berjaya Sompo has taken major strides in activating digitalization across the company via a number of key initiatives, including: online product innovation, increasing digital distribution channels, introducing new B2C channels as well as strengthening its digital infrastructure.
Mr. Tan said, “Berjaya Sompo will be investing heavily in digitalization as a key focus area to move the brand forward. One example of this is digital innovation, as we are developing new B2C channels to serve today’s mobile customers, as well as the simplification of our online products across Motor, Travel, Snatch and Home as we make it quicker and easier for Malaysians to purchase our products. In the near future, we will also be looking at strengthening our data capabilities and translating meaningful data that will help us serve our customers better.”
As for brick and mortar stores, Berjaya Sompo has opened a new branch in Petaling Jaya in 2017 and another one in Seremban in September 2018. Beyond this, it has no further plans to increase its branch network – in accordance with Berjaya Sompo’s digital-first approach.
“We are confident that with on our digitalization journey, we can service our customers from any of our current locations, regardless of distance. Furthermore, we anticipate more and more clients moving online to buy, renew and claim insurance in the coming years, hence dependency on physical storefronts will reduce,” added Mr. Tan.
A Robust Talent Strategy
For Berjaya Sompo, building the capabilities of its internal talent pipeline is key. This will ensure that the workforce is motivated and driven to establish customer experience as the number one priority in becoming the preferred insurer, working towards achieving customer excellence.
“Internally, we have various development programmes in place for all levels of our workforce that provides training and practical skills for not only work-related tasks, but also developing intrinsic skills that will shape them for long-term advancement,” said Mr. Tan.
With these plans in place, Berjaya Sompo is fully committed to growing in and with Malaysians, especially at this historic era of Malaysia Baru. As the brand works towards not only fulfilling but exceeding the expectations of its stakeholders, the brand is confident about fulfilling its aspirations of becoming one of the top five general insurers in Malaysia, contributing to the Malaysian economy and serving Malaysians nationwide.
