Reply to thread

Click here to become an Official Member of BMW Club Malaysia Download Form

Message: <blockquote data-quote="ozone" data-source="post: 296013" data-attributes="member: 71">On the questions regarding betterment, this is something which came in about 6 to 7 years ago if I remember correctly.The betterment rate which is approved by the Central Bank is as follows :less than 5 years old - no betterment6 years - 15% betterment7 years - 8 years - ??9 years - ??10 years - 40% bettermentPlease note that I cannot remember the exact percentage but 40% is the maximum - check with your agent.The car owners therefore have to contribute to the cost of a new part or alternatively, the car owner can opt for used part or oem part instead of original parts - the choice is entirely up to the car owner.Why did the Central Bank allow this - most car parts have a certain life span and if the car owner is given a new part, he will have the benefit of new life span of the new part. Hence the car owner is now asked to contribute if they opt for a new part.Personally, I agree with the concept except that it can be unfair sometimes as some parts has no known life span eg your glass window will be there forever so one can argue that betterment should not be applied.Before the Central Bank allowed insurance companies to apply betterment, the workshops were making a lot of money when insurance companies approved repairs based on new parts but they use used parts. The motor insurance industry started making losses and this is one of the steps the Central bank used to help insurance comanies survive. Remember that in Malaysia, motor insurance is regulated and insurance companies cannot raise prices to offset losses ( unlike countries like Singapore and Hong Kong where it is a free market )</blockquote>

Verification