PIAM says agreement on discount rates reached on Bank Negara directive

PETALING JAYA: The General Insurance Association of Malaysia (PIAM) said it is disappointed with the Malaysia Competition Commission's (MyCC) proposed decision of a RM213.45 million penalty against the association and its 22 members, for an agreement which it said was reached on a Bank Negara Malaysia (BNM) directive.
MyCC on Tuesday said its proposed decision against PIAM and its members was due to an agreement PIAM and the Federation of Automobile Workshop Owners' Association Of Malaysia (Fawoam) for fixed trade discount rates for parts of certain vehicle makes and labour hourly rates for workshops under the PIAM Approved Repairers Scheme.
In a statement today, PIAM said the association and its members were disappointed with the proposed decision issued by MyCC, as it has always worked in the best interest of the consumer and in full compliance with the directions of its regulator, BNM.

The association noted that the agreement was reached on BNM's directive to resolve significant consumer complaints regarding repair times in the motor insurance industry.
"PIAM sincerely hopes that MyCC will reconsider its proposed decision and the imposition of the financial penalty against its members. We will be obtaining legal advice to defend its position that this was not an anti-competitive agreement," it added.