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1800 22 2262 

1. Introduction (Our Capacities/requirements)

Motor insurance is compulsory under the law of Malaysia. This class of insurance is governed by the Motor Tariff and can only be transacted on a Cash Before Cover basis. The main classes of vehicle can be broadly divided into 3 categories, namely :

a) Private Cars

b) Commercial Vehicles & Special Type vehicles

c) Motor Cycles

2. Company Attitude

As the motor insurance business has always been a difficult class of business to underwrite, the company's attitude towards this class of business is to do it on a selective basis. Our main focus is on private cars which is generally more favorable than the other type of vehicles.

Other classes of vehicles including high-risk vehicles such as buses, tankers, taxis, 'A' Permit Commercial Vehicles should be avoided as far as possible due to their adverse claims experience.

As a guide for business development, Agents who are writing motor business and possess the following characteristics are preferred :

a) comply strictly with CBC regulations, and underwriting guide and requirements.

Collect Cash Before Cover

Private Cars

Our main focus is on Private Cars Insurance which is generally more favorable than other types of vehicles, MPIB's Agents are thus encouraged to focus on this class of business, Agents are required to maintain their private car portfolio at 1:15% of the total motor gross premium.

Motor Third-Party cover policy is strongly discouraged due to its bad claims experience and inadequate premium, We are only prepared to underwrite on an accommodation basis, or the MMIP facilities which MPI Generali is the panel service provider can cater to it.

3. Scope of Cover

The two main types of cover is as follows :

a) Comprehensive policy

This is the broadest insurance cover available under the motor tariff and it covers the Insured against :any

loss or damage to the vehicle as a result of theft, fire, explosion, lightning, malicious act, impact damage due to accidental collision; and

• any liability claims from third-party for property damage and/or bodily injury arising out of the use of the vehicle.

Additional benefits are also available subject to a small additional premium legal liability to passengers

•windscreen damage cover

•radio cassette/CD player

•flood, windstorm, rainstorm, landslip

•strike, riot and civil commotion

b) Third Party Policy

The coverage provided under this policy is very limited as it only protects the Insured or the authorized driver against any liability claims from the third parry for property damage and/or bodily injury arising out of the use of the vehicle.

4. Acceptance Criteria

All acceptances of molar business are strictly subject to the following Regulations/Guidelines

a) Cash Before Cover Regulations.

b) Inter-Company Agreement on General Insurance Business (ICAGIB).

c) Motor De-Tariff Regulation.

d) Motor Insurance Underwriting Term as stated in this guideline.

e) No Claim Discount Confirmation procedure.

5. No Claim Discount

Insurer shall upon granting the NCD, confirms the NCD with the Insured's previous insurer and if it is discovered that the NCD is incorrect, the Insured shall pay the difference within 14 working days, failing which the policy may be cancelled by the Company.

6. Transfer of Ownership

When a vehicle is transferred to a new owner, a fee of RM10.00 (for all classes) will be charged for the transfer of the insurance policy. NCD is not transferable to new owner and shall be recovered on pro-rata basis for the unexpired period of insurance.

7. Short Period Cover

All policies which are renewed/extended for less than one year are subject to the following short-period rates :

Not exceeding 1 week       1/8 of the a. premium

Not exceeding 1 month    1/4 of the a. premium

Not exceeding 2 months  3/8 of the a. premium

Not exceeding 3 months  1/2 of the a. premium

Not exceeding 4 months  5/8 of the a. premium

Not exceeding 6 months  3/4 of the a. premium

Not exceeding 8 months  7/8 of the a. premium

Exceeding 8 months          Full annual premium

8. Designated Bank Accounts for the remittance of

Motor Premium

To ensure that the Cash Before Cover Regulation is fully complied with, all  MPI's Agents are advised to bank all premiums within 7 working days from the date of issuance of the cover notes, into the following designated accounts at any of the branches nearest to your office.

9. Certificate of Insurance

The original Certificate of Insurance must be returned to the Company:

a) Upon cancellation of the policy.

b) Upon transfer of ownership.

c) Upon amendment of vehicle registration card, name of Insured, period of insurance and sum insured.

d) Upon theft of the vehicle or in the event of total loss.

In the event the Certificate is lost or mislaid, the Declaration of Loss of the original Certificate of Insurance must be signed by the Insured.

10. Refund Premium

As required under Section 141 (4) of the Insurance Act, 1996 all refund shall be made in gross amount to the Insured and the commission for the refund amount will be debited into the agent's account.

11. Cancellation of Policy by Policyholder

In all cases where a Policy is for any reason terminated before its normal expiry date the Certificate(s) must be returned to the Company for cancellation and any refund of premium may only be calculated as from the date receipt of such Certificate(s).

If the Certificate(s) cannot be returned because it has been lost or destroyed a Statutory Declaration must be obtained.

The Policy should be cancelled only as from the date of receipt of the Certificate( s) or the Statutory Declaration.

12. Breakage of Glass in Windscreen or Window

Extension Prior inspection by the Agent is required for the following requests:

a.Expiring policy not extended to include this Extension

b.Midterm inclusion of this Extension

The inspection must ascertain the condition of the windscreen, window and sun roof to ensure that none of these have cracks, chip, or any form of damage. A set of photographs showing the four angles of the vehicle to be insured. The photographs must include the vehicle registration plate.

13. New Risk -Documents Required

a) Proposal Form duly completed and signed

b) Copy ofVehic1e Registration Card

c) Undertaking Letter (NCD Recovery/Under insurance Valuation of Vehicle

d) If renewal from other insurance companies, documents required is either the Original Policy, Certificate of Insurance, Renewal Notice or Endorsement stating the NCD percentage.

14. Underwriting Terms

Agents must strictly adhere to the motor underwriting terms. All deviations and limits of acceptance beyond the agents' authority limits must be referred to the company prior of commitments

Note: The Company reserves the right to make an adjustment to the Underwriting Terms as and when deemed necessary.

15. Underwriting Terms and Conditions -Private Cars, Commercial Vehicles, and Motor Cycles

All acceptances must be strictly in accordance with the System De-Tariff Premium, Loading imposed, and Excess as set out from time to time depending on underwriting and loss experience)

All agents are not allowed to accept any of the following risks. Any request for accommodation must be referred to the Company accompanied by full underwriting information and with good justification.

16. Referred Risks (Acceptance of such risk is to be referred to Business Development or Branch Head)

i) Private Car (including those registered for commercial use)

17. Special Acceptance Risks (Acceptance of such risk is to be referred to Portfolio Underwriters / Head of Underwriting and Technical Support)

i) Private Car

a) Model Type of Car

(1)Toyota (Harrier, Landcruiser, Wald, Estirna, Alphard, Lexus, Hilux, Fortuner, Caldina)

(2) Mitsubishi t Evolution, Airtrek )

(3) Nissan (Fairlady, Nissan Skyline, Murano, Silvia)

(4) Honda (CRY, Stream & Odyssey)

(5) Volkswagen (Touareg)

(6) Mini ( Mini Cooper)

(7) Hummer

(8) SAAB

b) One of its kind or rare model imported by AP holders

c) New cars imported by parallel importers without proper workshop support

d) Reconditioned cars imported by parallel importers without proper workshop support

e) Sports cars & High-Performance Cars

i) Left-hand drive vehicles