'Insurance companies face stiff competition to come up with creative packages'

KUALA LUMPUR: Deregulation of the insurance industry from July 1 means insurance companies will have to be more creative to get the public to purchase their products, says Persatuan Insurans Am Malaysia (Piam) chief executive officer Mark Lim.
The provision of child seats – that are expensive – for free, or at discounted rates could direct people to companies who have such offers, he cited as an example.
He added that innovation will not be the only factor to attract consumers but also the service offered by the company and how fast they can settle insurance claims.
"In a liberalised environment, consumers have the power to make informed decisions on their personal motor insurance needs.
"Motorists must start taking an active interest to source for fair premium pricing based on their risk profiles," Lim told theSun.
He urged motorist not to always go for the cheapest because it might not have the best insurance coverage.
"Instead they should find the company or policy that best suits their needs and budget," he added.
He said it was important for motorists to consult agents of various insurance companies and see what products are offered.
He added that they also have the option of visiting insurance company websites to look for what is offered for motor insurance online.
He said it was also important for the authorities to step up enforcement activities to ensure drivers follow traffic laws.
He added that all stakeholders need to get involved in changing the mindset of motorists by incalculating safe driving habits due to the high accident rates in the country.
He said PIAM was worried about the number of road accidents and deaths in the country.
Lim pointed out that in 2016 there was an average of 18 deaths a day due to road accidents and the highest deaths involved those aged between 16 and 20 years (934).
He added that motorcyclists were the highest number with 4,485 deaths last year.
In giving the breakdown on road accidents over the last five years, he said the figures were high.
"In 2012 there were 6,917 deaths, 2013 (6,915), 2014 (6,674), 2015 (6,706) and 2016 the number of fatalities was 7,152," he said.
He urged motorists to drive safely as this will help reduce the insurance premiums they will have to pay as well as reduce the number of road accidents and fatalities.
He said PIAM wants to educate road users on the importance of driving safely and this will be done over period of time via advertisements on television, newspapers and online.
"Safe road users will benefit once the industry is deregulated and they will be also get to claim their No Claim Bonus (NCB)," he said.