Thursday, March 10, 2011

Bank Negara urged to act against errant insurance companies

KUALA LUMPUR: Bank Negara Malaysia (BNM) has been urged to rein in errant companies that impose exorbitant third-party charges.
Several Opposition members and government backbenchers spoke out in unison Thursday on the matter.
Datuk Mohamed Aziz (BN-Sri Gading) claimed that insurance companies imposed exorbitant charges for third-party insurance, normally for cars over 10 years old.
"There are cases when the insurance charges for cars over 10 years old are more expensive than for a new car. We hope that BNM will look into this," he said, when debating on the motion of thanks on the address of the Yang di-Pertuan Agong in the Dewan Rakyat Thursday.
This was unfair to the people in the rural area, many of whom were using old cars, he said, adding that the Government should consider setting up what he called a 1Malaysia insurance provider.
Datuk Bung Moktar Radin (BN-Kinabatangan) called on the government to set up a committee to monitor the operations of insurance companies.
"They want everything to be insured but when there are claims from the consumers, it takes years to settle," he said.
Chong Chieng Jen (DAP-Bandar Kuching) claimed that consumers had to pay up to RM200 to get insurance coverage for their old cars compared to only RM70 to RM80 previously.
He said insurance companies also forced vehicle owners to buy additional coverage, including for personal accident and for car passengers before they were allowed to purchase the third-party insurance.
Datuk Seri Azmi Khalid (BN-Padang Besar) said the government should also monitor tow truck operators, saying they contributed to higher insurance premium

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