New Insurance Terms-BNM

BANK Negara Malaysia (BNM) announced several new steps involving vehicle insurance

1.require insurers and takaful operators advise users on appropriate market value for the motor vehicle when purchasing a comprehensive motor insurance cover for private cars.

-This measure seeks to address the problem of excessive or reduced insurance for automobiles that could cause consumers to pay higher premiums than necessary or accept lower compensation when making a claim insurance policy.

2.insurance, takaful operators and agents are required to advise consumers on the following items before they buy or renew your motor insurance:
-current market value of the car
-the importance of insuring the vehicle at the appropriate market value.
effects of excess insurance or insurance declined a claim.

3.advice to consumers on the current market value shall be based on:
-ISM Automobile Business Intelligence System (ISM-ABI system) or any other vehicle valuation database that can be trusted.

4.current market value of the vehicle will be shown in a renewal notice or disclosure sheet products (product disclosure sheet) issued to the user.
-To ensure that the market value of the vehicle when the insurance is taken consistent with the market value when a claim is made.
-insurers are required to refer to the same database to determine the market value in both situations involved.