Isn't this the largest insurance scam?

[WKK]

Yes... u r right.... they will be some form of underwriting. will keep everyone posted very soon.

 

[scin]

I believe there must be a basis for underwriting on agreed values ... aint easy in Malaysia but it's a good start anyway.

I am also pretty sure there will be limitations set on the amount as well as the overall cover (probably total loss or theft claim cover only) as one cannot agree on agreed value of RM100k when the market value is only say RM70k.

Agreed Value basis will generally be more suitable for Classic cars where the values appreciate in time. Even then there is a guideline or benchmark to follow.

HM

Agreed! You can't go round over insuring just for the hell of it, even though you are willing to pay for it coz that will lead to all kinds of fraud!...... BUT if the car is worth 70k and I pay the premium for it to be insured at 70k, I would expect to be able to get back that 70k upon making my claim.

 

[DiNAN.328i]

insurers will pay the lower of market value or your sum insured. It is written in your contract agreement.

You can always re-negotiate an offer of compensation if it's ridiculous, but a 5-10% variation in sum insured is normal for a claim within 6-12 months.

So if you don't agree with the terms & conditions, then don't sign the contract. And then you won't have insurance because insurers have a standard contract agreement to issue to policyholders and they all charge the same. The contracts & premiums (irrespective of the insurers) are governed tightly by Bank Negara. Only difference is if you are a staff of the insurance company, or if they offer better services (e.g. towing or breakdown recovery)

HTH.

 

[emaveric]

Any update on this issue?

 

[stormhunt3r]

Originally Posted by WKK
every body the era of problematic ins will be over soon... we will be going to the "Ageed Sum Assured" WILL BE COMING..... wait for the good news...I assure u is GENUINE.... Not more heartache and frustation

when is this coming along?

Insurance is to restore the insured back to the state before the accident occur. No matter what's the amount they pay, i believe if the amount is able to get you a car of the same make, model, year at the date of loss. It's well indemnified to me. No matter what compensation method they use.

For heavily modded cars, you can pay extra premium for things u added (most of it if not all). Juz like the windscreen. So, in the event of a theft or break-in, they would pay u the amount insured less depreciation or based on the current value of the thing.

But no matter how unfair they are..we still buy insurance..

 

[devilsadvocate]

bros,

just stumbled upon this post today.

i used to be an underwriter myself and very familiar with the Insurance industry.

firstly i have to agree with most of you guys that the industry certainly lacks a great deal of professionalism. Mostly i believe it is because it is the general attitude of Malaysians.

Most Malaysian believe that buying an Insurance policy is like buying a lottery ticket. The only big question in their mind would be I have paid x dollars of premium - I am expecting the Insurer to pay me at least 100X. Trust me I have been a loss adjuster for five years - been there and seen it all. hence insurers to tend to pay tough ball. however in my career i have done assignments for various underwriters - the international (or those with foreign affliations) are generally very efficient - the ones whom i used to do work for - will normally offer settlement within a week of the police investigation outcome stating that the car is yet to be recovered.


Anyways back to the issue in hand. The general principal of insurance is that of indemnity i.e you can only be paid the amount of loss that you have suferred. and the only means of determining the value of a car is by way of a market value report. Some franchise holders do it for free - some charge a fee. Insurers are obliged to adopt the valuation done by the franchise holder - and in my experience they normally do. and the onus is yours as the policy holder to insure what you think is the market value and pay the appropriate premiums.

And you must note that motor insurance is tariff in Malaysia - meaning the premiums, loading factors, policy wording has been prefixed and everyone has to follow(well technically everyone - as Takaful companies are not legally required to follow - but they do as a matter fo practice).

The tariff also actually allows for what is known as Agreed Value . I.e the Insurer would agree with you prior to the commencement of the policy that in the event of a total loss - the value paid to you would be the value agreed upon in the very begining.

Some Insurers like MAA Bhd have been oferring this since early 2007. but you must insist that you want Agreed Value Cover.

hope the above clarifies.

cheers bro.

 

[dark1234]

wish i have read this when i brought my policy last time, so when my car is lost i have to play hardball and preemptive strike to sue insurance company using our company lawyer instead and threaten to switch insurance co for entire company and subsidiary , thus i did get fast payment ( after my office girl ask the insurance company , if dun want to pay , just say so why drag to issue payment ) got the entire deal concluded from 30july , got my check from insurance in mid of sept.
and at 97.6% of insured sum for my E60.