Vehicle insurance liberalisation: PIAM to use MIROS research on road safety risks

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Most of us, if not all, are now aware that since 1 July 2017 vehicle insurance are no longer priced based on tariffs. Instead, its liberalisation means that the premium for comprehensive and third party vehicles owners are decided to a risk-based pricing model. Not only of the vehicles but also the owner.

Additionally, following the signing of a memorandum of understanding between MIROS (Malaysian Institute of Road Research) and PIAM (General Insurance Association of Malaysia), members of the latter would be able to use the research by MIROS on the risks of Malaysian roads in determining the insurance premiums to be charged.

Minister of Transport, Datuk Seri Liow Tiong Lai had commented, “The initiative, that came into effect on July 1, is based on the assessment of your insurer. If your risk profile is good, you will enjoy a lower premium. This is a fairer pricing model which benefits the consumers."

"It will instill the culture of putting safety first among the motorists and at the same time, raising road safety in Malaysia," he added, during the event to mark MIROS' tenth anniversary at Putrajaya recently.