More For Less With Liberalisation In Insurance Industry

Since 2017, the insurance and takaful industry has been shifting towards an open market with competitive pricing for fire and motor insurance and takaful. Insurers and takaful operators are also allowed to offer additional motor and fire products for consumers.

This transition has been under the Phased Liberalisation of Motor and Fire Tariffs by Bank Negara Malaysia (BNM). With Phased Liberalisation, BNM expects fairer pricing for motorists while encouraging the insurance industry to enhance product offerings and services. BNM continues to review various aspects of liberalisation based on market response.

How do you benefit?
Following liberalisation, insurance companies are no longer required to follow a fixed scale when calculating premiums which was based on just value. Rather than a fixed rate under the Tariff environment, premium adjustments will commensurate with the risk profile of motorists and their vehicles. This takes into consideration your driving experience (those with more years of experience are generally considered to be safer) and past claims, if any. The age and type of vehicle and its market value also matters, of course.

In addition to pricing, insurers also strive to attract motorists in various ways. No longer will every insurers' product be the "same" as efforts are continuously made to differentiate services and offerings to meet your needs. Thus you will benefit by having the freedom to shop around for the best prices based on your individual protection needs.

Consider the whole package
Just as when buying a car, the price or premium should not be your only deciding factor. Looks at the whole package offered and whether there are complimentary or subsidised services such as towing and other support in emergencies.

For example, Zurich’s Z-Drive Assist includes coverage for Accidental Death or Accidental Permanent Disablement, Medical Expenses, Daily Hospital Income, and a Courtesy Car. The basic insurance coverage plan even includes an Inconvenience Allowance due to flood, a benefit which would certainly be welcome with frequent occurrences of floods these days.

For an additional charge, further benefits can be included in Z-Drive Assist such as Snatch Theft Protection, ATM Robbery and healthcare costs if infected by dengue. The premium depends on the plan taken, number of passengers, and add-ons.

You can include an additional vehicle under same policy (up to 5 vehicles per policy) and furthermore, Z-Drive Assist is also available to vehicle owners whose motor policy is not with Zurich.

With Z-Driver and Z-Driver Takaful, Zurich offers broader protection with value-added features not only for the driver but also for family members. Not only can you enjoy discounts of up to 10% on the premium if you have a lower risk profile, but there is also the option of getting up to 20% discount with voluntary excess and you can select the amount that self-payment will be made in the event of claims.

Additionally – and a good protection to have in these times – Z-Driver also offers cover for water damage from just an extra RM10 a year. Should you require towing and cleaning of the vehicle after being flooded, Zurich offers reimbursement of up to RM5,000.

Standard features of Z-Driver/Z-Driver Takaful include 60% discount off the tariff rate for Special Perils coverage, which means your vehicle is protected against damages due to natural disasters. There’s also complimentary cover extension to an unlimited number of named drivers (for private use) which means all your family members can use the vehicle with peace of mind.

Zurich’s extra benefits
With Z-Driver, there is no betterment clause which requires the policyholder to bear a portion of a damaged part’s cost when repairs are made. Zurich’s Waiver of Betterment means the damaged part can be replaced with a new, original part at no extra cost.

As a Z-Driver policyholder, you also have the option of taking Personal Accident (PA) cover of up to RM175,000 per vehicle as its owner and for your family members for as low as RM15 a year. While it is hoped that there will be no need for claims, an accident can happen and such protection will then be greatly appreciated.

With some windscreen cover policies, the cover will be terminated after a replacement claim (but the NCD will not be affected). With Z-Driver’s Enhanced Windscreen Cover, there will be no termination and instead, the windscreen sum insured will be reduced by deducting the windscreen claims amount. In addition, it will also be possible for you to reinstate the claims amount portion of windscreen cover at a pro-rated premium rate.

For those who are E-Hailing drivers, an endorsement to the Z-Driver/Z-Driver Takaful policy can be included which provides for loss or damage to the vehicle used as well as liability to other parties, including passengers. There is also PA Cover of RM50,000 in death or permanent disablement benefits, as well as a weekly benefit for Permanent Total Disablement.

The same liberalisation process applies to the Takaful insurance market, which Zurich has serviced since 2016. Zurich offers comprehensive motor takaful plans which have similar coverage and protection elements as conventional insurance but are Shariah-compliant, with premiums treated as contributions.

Find out more about Zurich's Motor products here & Motor Takaful products here or contact your usual insurance or takaful agent.

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