Chubb unveils non-tariff motor insurance

By IZZAT RATNA

Chubb Insurance Malaysia Bhd (Chubb Malaysia) has rolled out its first non-tariff motor insurance policy developed under the nation’s phased liberalisation of the insurance industry.

Non-tariff motor insurance allows insurers the flexibility to develop and package motor insurance products and services to suit consumers’ budgets. Premium rates for these insurance policies will be determined by the individual risk profile of policyholders.

The first phase of the liberalisation of motor and fire tariffs announced by Bank Negara Malaysia in 2015 commenced in July 2016 and full liberalisation will be implemented in 2019 if all goes as planned.

Chubb Malaysia country president Steve Crouch said in a statement that the company sees the phased liberalisation of motor insurance as an opportunity to drive innovation of products to customers.

“To craft our My Car Insurance policy, we conducted extensive studies on the various experiences Malaysian drivers go through and designed an all-in-one solution encompassing coverage for inconveniences caused in the event of a vehicle breakdown, accident or flood,” he said.

My Car Insurance is distributed via all Chubb agents throughout Malaysia, he added.

In crafting My Car Insurance, Chubb Malaysia considered everyday risks drivers were exposed to such as accidents, vehicle breakdowns, floods and the loss of personal items due to theft while they were away from their cars, Crouch said.

Available in two plans to meet different budget needs and depending on the selected plan, the insurance offers coverage for loss or damage of a vehicle due to an accident, third party liability and floods.

According to the Malaysian Institute of Road Safety Research, there were 521,466 road accidents out of 27.61 million registered vehicles in 2016 compared to 489,606 road accidents out of 26.3 million registered vehicles in 2015. A majority of the accidents 80.6% were caused by human error.

“An accident or vehicle breakdown is often a stressful event, which can be compounded by the financial burden due to expenses on motor repair.

“The situation could be made worse if the vehicle needs major repair, leaving the driver further inconvenienced,” he said.

The key benefits of the insurance included minor roadside repair, unlimited towing services to any preferred location, cost of hotel accommodation and temporary replacement car, as well as coverage for loss or damage, cleaning costs for the interior of the car in case of flooding.