Why Should Owners Of Vehicles Over 10 Years Old Be Forced To Purchase 1st Party Insurance Cover?
To purchase insurance coverage for your old vehicle today has become a big hassle. Pensioners, kampung folks and those of the lower income groups own second hand cars. The number of vehicles in this category is rather large.
When the government announced its intention to scrap off cars over 15 years and above, it met with much objection. The 30,000 strong member of Volkswagen Club was amongst one of the group to voice its vocal objection.
And what happened eventually, the National Automotive Policy (N.A.P.) did away with its suggestion to make it mandatory for all cars over 15 years of age to undergo tests by the Puspakom authorities prior to the issuance of the annual road taxes.
And what are the old cars owners facing today?
After the N.A.P. issue subsided, we are again today faced with yet another colossal obstacle – 1st party insurance coverage for old vehicles.
If you happen to own a vehicle and its road tax has expired recently, most probably you will have to face the difficulty of getting 3rd party insurance coverage for your vehicle.
The motor insurance industry today is in a kelam-kabut situation. Be reminded that years ago, an old vehicle needed only a 3rd party insurance costing RM50 – RM70. Yes, insurance coverage was compulsory.
But today, we are held to ransom by the huge insurance companies that old vehicles should purchase 1st party insurance of at least RM8000.
Last year, we were held to yet another compulsory decision by the insurance companies. Whereby they forced those who wish to purchase 3rd party insurance to purchase a Personal Accident Policy of RM10,000.
Why should we as Malaysian and living in a democratic country succumb to such demands by insurance companies?
Insurance companies, like other trading companies and traders doing a business are given the license to operate. If unable to deliver what the customers demand or desire, then they shouldn’t be running such businesses.
Insurance companies claim they are making a loss by insuring old vehicles. Issuing 3rd party insurance for old vehicles is part and parcel of their business.
If insurance companies feel they are not able to provide the coverage, then it is suggested that they should “wind up” their business, go to China and sell shoes instead.
Insurance selling is a big and lucrative business here in Malaysia. But selling shoes to the billions of Chinese people in China is a better and much more lucrative business then selling insurance over here.
To these companies, the advice is – diversify!
What would happen if big insurance concerns refuse to sell 3rd party insurance to use old vehicle owners?
The problem can be solved rather easily. Let Pos Malaysia, which has thousands of post office branches all across the entire nation take over the selling of 3rd party insurance.
When the government implements such as decision, insurance companies will then stand to loose much of their market in the insurance section. Only then will they realize how vital the 3rd party insurance is to them.
Regards to the topic of 3rd party insurance, which affects thousands of drivers with old vehicles in Malaysia, I have kept a clipping in my files entitled “New 3rd party insurance rate for old vehicles” dated 7th July 2009.
In the article, it was stated, “a new tariff for 3rd party insurance is being drawn up, following insurance firms’ refusal to offer coverage to vehicles that are more than 10 years old.
Deputy Finance Minister, Datuk Chee Heung said, “Bank Negara was reviewing the rate to come up with a premium that was acceptable to all”.
Come on Datuk! I’m sure it does not take more than half a year to come to a simple decision.
Don’t forget dear Datuk, when the Rakyat gets annoyed, they know what to do in the next general election!
So think about it and come out with a good and speedy solution or else…
Just yesterday, an old friend of mine had to fork out a sum of RM380.20 premium for his 1988 old Mercedes Benz.
And the insurance? A 1st party insurance policy for RM8000!
Whether our old cars need 1st party insurance or otherwise, let the owners decide! Not the insurance companies.