BANK Negara Malaysia, together with the insurance and takaful industry in Malaysia, is developing proposals for the next phase of the liberalisation of motor and fire tariffs targeted for the second half of 2020, the Ministry of Finance says in a statement on Dec 23.
It adds that this is part of the reforms to enhance the sustainability, as well as to preserve the overall stability, of the insurance and takaful market. This multi-stakeholder effort includes a review of the Motor No-Claims-Discount (NCD) structure to encourage safer driving by rewarding good road behaviour.
The effort is also aligned with the Ministry of Transport’s Road Safety Plan 2014-2020 which aims to reduce the number of deaths and serious injuries by 50% by 2020.
The phased liberalisation of the motor tariff, which started in July 2016, introduced two significant changes. These changes were flexibility for insurers and takaful operators to offer new motor products and add-on covers that were not defined under the previous tariff system, as well as flexibility for premium rates for motor comprehensive, and motor third party, and fire and theft products.Â
