PREMIUM CALCULATIONCar insurance charge or more accurately the car premium is charged base on the ‘Motor tariff’ in Malaysia, a fixed price every insurance companies have to follow, at least for at the present until the year comes 2016, where insurance market is forced to open up and transforms itself into a free market under the competition act. When that comes, it will be rather good news for us as consumers because competitions always bring down prices at the same time offering ever better quality of service and product features.
Now then since there’s an existence of the ‘Motor tariff’, where the pricing of car insurance should be same for every insurance company, why is it then I can get different quotes of and pricing offered by different companies? Answer for this is the ‘loading’. Read more about loading under the topic of “Betterment? Agreed Value? Excess? What do they mean?” As for now, let’s explore how to calculate the motor premium base on the Motor tariff.
The calculation of premium is rather straight forward, it does not go by different models of vehicles, instead it is categorized on the cubic capacity (~CC) of your vehicle, the vehicle type (whether it is private car, motorcycle, bus, special type etc.) and the type of coverage you opt for. For more on types of coverage, read more on “What does my car insurance cover?” Note that the premium is different for East Malaysia and West Malaysia.
Now then since there’s an existence of the ‘Motor tariff’, where the pricing of car insurance should be same for every insurance company, why is it then I can get different quotes of and pricing offered by different companies? Answer for this is the ‘loading’. Read more about loading under the topic of “Betterment? Agreed Value? Excess? What do they mean?” As for now, let’s explore how to calculate the motor premium base on the Motor tariff.
The calculation of premium is rather straight forward, it does not go by different models of vehicles, instead it is categorized on the cubic capacity (~CC) of your vehicle, the vehicle type (whether it is private car, motorcycle, bus, special type etc.) and the type of coverage you opt for. For more on types of coverage, read more on “What does my car insurance cover?” Note that the premium is different for East Malaysia and West Malaysia.