Wednesday, May 4, 2011

PIAM supports motor cover framework

The General Insurance Association of Malaysia (PIAM) fully supports measures for wider access to motor cover as part of the industry's transition towards the New Motor Cover Framework which will come into effect next year.

In a statement here today, PIAM executive director Lim Chia Fook said its members are putting the systems in place to be able to cover such "displaced vehicles" through the Malaysian Motor Insurance Pool (MMIP).

"All the insurers should be able to do so by next week," he said in response to yesterday's announcement by Bank Negara Malaysia that all motor vehicles, irrespective of age, will be provided cover at normal market premium rates including the permitted loadings.

Lim said it would take some time for the back-end facilities and systems to be prepared so that each insurance company and it branches could offer either its own motor cover or issue the cover on behalf of MMIP.

The MMIP was also an industry initiative to provide motor insurance as an insurer of last resort for vehicles that are unable to secure cover from the normal market, Lim added.

He said PIAM will continue to work closely with all stakeholders towards ensuring a smooth transition to the New Framework.

"PIAM is part of a joint working committee comprising all stakeholders which meet regularly to monitor the transition towards this new Framework," he added. -- Bernama
Thursday, May 05, 2011, 12.15 AM

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