Motor insurance rates have been revised upwards yearly in February since 2012, and the latest revision to the rates are set to come into effect on February 23, 2015.
The tables above list the old 2014 rates and new 2015 rates for private cars. The difference in rates are an increase of about the same amount as the adjustments made the previous two years.
Things will be different next year – 2016 is the deadline for planned detariffing of motor insurance premiums. When that happens, premium rates will be further differentiated in accordance to the individual risk profile of vehicles, owners, as well as potential pricing differences between insurers.
When the detariffing comes into effect, we might see the emergence of ‘full service’ insurers with higher rates but more perks such as complimentary tow truck service, as well as ‘budget no frills’ insurers.
Motor insurance is the dominant business line for general insurers in Malaysia, registering a steady 5.4% growth for 2014. The industry paid out RM5.04 billion in motor insurance claims last year.