Why Liberalise?
Currently, motor insurance premiums/motor takaful contributions are determined by tariffed rates based on model, age and engine capacity of vehicles, and discounts in the form of No Claims Discount (NCD).
Starting 1 July 2017, the premium/takaful contribution for Motor Comprehensive and Motor Third Party Fire and Theft products will be determined by individual insurance companies and takaful operators.
Liberalisation will drive fairer ways of pricing premium/takaful contributions based on risk profiles, which will encourage road users to be more responsible. This will spur innovation with more products and services to meet different consumer needs for the ultimate benefit of motoring public.
What are the benefits?
More Choices - New and innovative products
Better Efficiency - Smoother and more efficient services
Fairer Pricing - Premiums/takaful contributions will be priced fairly based on risk profile groups.