It has been three months since the 2nd phase of the Motor Detariffication came into effect in Malaysia. iBanding has again made an effort to test its outcome (refer to our previous article on motor insurance comparison).

This time we are testing the following 7 companies to compare the premium for comprehensive motor insurance:=

  • Takaful Ikhlas
  • Syarikat Takaful Malaysia
  • Berjaya Sompo
  • Etiqa Insurance
  • AmGeneral & Kurnia
  • AXA Affin
  • Liberty

 

We obtained insurance quotations from the companies’ websites. The following information is required in order to get the quotation:

  • IC number
  • Car Model and Make
  • Year of Make
  • Car Registration Number
  • No Claims Discount (NCD)
  • Car Registration number

NCD can be obtained from MyCarInfo here

 

The comparison

We compared comprehensive motor insurance for a 2013 Peugeot, model 208 with NCD of 55%. The owner of the car is a 41-year-old male. According to MyCarInfo the market value of the car is currently RM 38,200. This is important because the market value will be used as the Sum Insured (rounded up to the nearest 1000th) for the insurance plan.

The following table shows the proposed Sum Insured and the respective premium for each insurance company.


*Sum insured is higher

Findings

Our findings above are different from two months ago where all 6 companies compared (exclude Liberty) had the same premium. Because the study we did was only a few weeks after the implementation of motor detariffication, it was safe to presume that the companies had not adopted a new way of premium calculation.

However, this time around, it is clear that some of these companies have already started to determine their own insurance price. Notable differences can be observed for the premium by Syarikat Takaful, which is the lowest among the 7 companies. As expected, Etiqa and AmGeneral are higher because the sum insured is higher.

Based on the above prices by 7 companies, you can save up to approximately 24% on your insurance price (which can be done through iBanding motor renewal), by switching from the highest to the lowest (do note again the difference in sum insured).

 

Why is Sum Insured important?

The proposed sum insured in the table above is the value that each insurance company automatically suggests when a quotation request is made. It is surprising to see that Etiqa and AmGeneral/ Kurnia proposed a different sum insured for our sample car. Etiqa is particularly high with RM 46,000 compared to the RM 39,000 that MyCarInfo.com and the other 5 insurance companies proposed.

The higher the sum insured – the higher the premium. This is because the sum insured is one of the key factors in setting the price for insurance. This makes sense because a car that is more expensive will have higher repair costs during an accident, so insurance companies charge a higher price.

 

Conclusions

In our review above, insurance companies are now determining their own insurance price. The price difference is between the expected range of 10% that is allowed by Bank Negara. It is important to compare prices as some companies may increase their prices while others may lower theirs. To ensure that you are getting the product that you need at the best price, it is wise to compare the prices of at least several companies.

 

To understand more about detariffication, click this link.

 

The following snapshots are pictures of quotations from the individual insurance companies

Takaful Ikhlas


 

Syarikat Takaful Malaysia


 

Berjaya Sompo


 

Etiqa Insurance


AmGeneral & Kurnia


 

AXA Affin

 

 

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