premium calculation
Car insurance charge or more accurately the car premium is charged base on the ‘Motor tariff’ in Malaysia, a fixed price every insurance companies have to follow, at least for at the present until the year comes 2016, where insurance market is forced to open up and transforms itself into a free market under the competition act. When that comes, it will be rather good news for us as consumers because competitions always bring down prices at the same time offering ever better quality of service and product features.
Now then since there’s an existence of the ‘Motor tariff’, where the pricing of car insurance should be same for every insurance company, why is it then I can get different quotes of and pricing offered by different companies? Answer for this is the ‘loading’. Read more about loading under the topic of “Betterment? Agreed Value? Excess? What do they mean?” As for now, let’s explore how to calculate the motor premium base on the Motor tariff.
The calculation of premium is rather straight forward, it does not go by different models of vehicles, instead it is categorized on the cubic capacity (~CC) of your vehicle, the vehicle type (whether it is private car, motorcycle, bus, special type etc.) and the type of coverage you opt for. For more on types of coverage, read more on “What does my car insurance cover?” Note that the premium is different for East Malaysia and West Malaysia.
For Comprehensive coverage, base on your engine’s cubic capacity select the corresponding insured value for the first RM1000 from the table as the base premium, add on additional RM26 for any additional insured value for each RM1000 or part thereof and you will get your motor premium, your car insurance price. For Third Party Fire & Theft, follow the same method of calculation, then times 75% at the total value of it. Third party and Act cover are fixed premiums only based on the cubic capacity from the table.
Example:
A 2600 CC private car with an insured value of RM85,500 calculation will be as below.
Comprehensive – RM323.80 + RM26 x 85 = RM2533.80
Third Party Fire & Theft – RM2533.80 x 0.75 = RM1900.35
Third Party – RM135.90
Now then since there’s an existence of the ‘Motor tariff’, where the pricing of car insurance should be same for every insurance company, why is it then I can get different quotes of and pricing offered by different companies? Answer for this is the ‘loading’. Read more about loading under the topic of “Betterment? Agreed Value? Excess? What do they mean?” As for now, let’s explore how to calculate the motor premium base on the Motor tariff.
The calculation of premium is rather straight forward, it does not go by different models of vehicles, instead it is categorized on the cubic capacity (~CC) of your vehicle, the vehicle type (whether it is private car, motorcycle, bus, special type etc.) and the type of coverage you opt for. For more on types of coverage, read more on “What does my car insurance cover?” Note that the premium is different for East Malaysia and West Malaysia.
For Comprehensive coverage, base on your engine’s cubic capacity select the corresponding insured value for the first RM1000 from the table as the base premium, add on additional RM26 for any additional insured value for each RM1000 or part thereof and you will get your motor premium, your car insurance price. For Third Party Fire & Theft, follow the same method of calculation, then times 75% at the total value of it. Third party and Act cover are fixed premiums only based on the cubic capacity from the table.
Example:
A 2600 CC private car with an insured value of RM85,500 calculation will be as below.
Comprehensive – RM323.80 + RM26 x 85 = RM2533.80
Third Party Fire & Theft – RM2533.80 x 0.75 = RM1900.35
Third Party – RM135.90