The Malaysian insurance sector has recorded a significant drop in motor revenue, which is expected to carry on until the end of the year prior due to the auto industry's expected zero growth in sales. 

According to Zakri Khir, CEO of Allianz Malaysia Berhad, "We expect no growth in the sales of the motor industry because I think we read somewhere that in June itself there has been zero car sales due to the lockdown. Motor industries are affected and that's why insurance has also been weak and will continue decreasing."

Before this, Kenanga Research revealed that the current lockdown will see almost zero new car sales registered following a notable dip in sales recorded in May 2021.

With car showrooms closed for the duration of the lockdown, you can expect no new registrations for the month of June 2021. The exceptions will be a handful that already had their loans approved prior to the lockdown with a Letter of Undertaking (LoU) issued.

It could very well be a reflection of April 2020 that saw a measly 141 registrations for new vehicles.

Apart from that, Zakri also stated that the value of loss or compensation for the use of accidental consumer fraud is estimated to reach RM1 billion a year.

However, he said that the matter could be resolved through several actions.

"We can combat the loss, starting with the insurance company. We need to stop the environment of people monetising everything and also authorities need to step up and stop this activity. 

"In terms of APs in the spare part industry, the government can standardise the tax like how Singapore does it."

Zakri also mentioned that "Allianz as well has started to practice open tender three years ago. We did this to fight all those corruption and we also have Road Ranger, a motor accident service which will help the consumer from being a victim of independent towing trucks that gain profit by monetising the authorities."