Tuesday, October 26

Industry concerned over high motor insurance claims


KUALA LUMPUR: Motor insurance claims which amounted to RM5.02 billion in 2016, has raised concerns within the general insurance industry, as it worked out to a staggering daily pay out of RM13.8 million.

General Insurance Association of Malaysia (PIAM) chief executive officer Mark Lim said road accidents often resulted in large claims involving death and injuries to motorists/ passengers, as well as severe losses in own and third party property damages.

“The motor insurance segment continued operating at a loss. Although it recorded a five per cent declined in 2016, it was still over RM5 billion.

“This cannot be sustained over the long term because the insurance industry is indeed paying a huge amount in claims,” he added.

Lim told this at a media briefing on the full year 2016 industry results here, yesterday.

In 2015, the total paid out for motor insurance claims stood at RM5.29 billion.

On a positive note, Lim said the industry recorded a decline of 20 per cent in motor theft counts.

He said the number of stolen vehicles for all classes in 2016 amounted to 19,307, a reduction from 24,154 in 2015.

“We would like to commend the police, customs and other law-enforcement agencies for their steadfast commitment and collaborative efforts in working closely with the Vehicle Theft Reduction Council (VTREC),” he said.

The VTREC is a multi-stakeholder organisation set up by PIAM to combat vehicle theft.

On the same note, Lim said for 2016, the locally made Proton Wira recorded the highest private car theft at 854 units, a drop by 360 units from 2015.

“The Toyota Hilux recorded the highest foreign made car stolen at 624, an increase of 29 units from previously,” he added.

Besides that, the industry is also working on a Fraud Intelligence System (FIS), which uses advanced data analytics to detect and combat insurance fraud in the country.

Lim said the FIS would be deployed in phases and is targeted to go “live” in the third quarter of 2017.  — Bernama