SHAH ALAM – The Federation of Malaysian Consumers Associations (Fomca) reported receiving over 70 consumer complaints about the rise in automotive insurance rates.
Its National Consumer Complaints Center (NCCC) senior manager Baskaran Sithamparam said the minimum rise was 10 per cent and varied depending on the insurance firm.
"In fact, reports have been made that the surge happened after the Movement Control Order (MCO) ended in early January, this year.
"We don't check the percentage growth of every (insurance) company out there, but we refer to the complaints brought to us,” he told Sinar Harian.
Baskaran said that the majority of consumers believed that the rate of insurance rise was exorbitant and inappropriate to be adopted at a time when the public was still dealing with a crisis of rising costs of basic goods.
"Some have complained, but now is not the time to raise premiums because many people are struggling to make ends meet. Customers occasionally voiced their complaint that the rate of the rise does not match the quality of the services provided.
"Premiums go up, but when it comes for consumers to submit claims for accident insurance, it will undoubtedly take a lengthy time, some even exceeding four months due to numerous causes," he stated.
Meanwhile, he added that his party would write to Bank Negara Malaysia (BNM) regarding the rising complaints about the increasing rate of automotive insurance.
"We are still collecting data from pertinent party sources and responses,” he said.
Meanwhile, an insurance agent disclosed that a number of variables, including the rise in the price of replacement parts, were to blame for his company's auto insurance premium which increased by roughly 30 per cent.
Azmi Ismail said that the rise in the cost involved natural disasters and accident protection.
The weak value of the Ringgit at the time, according to another insurance agent who preferred to go by the name Khairul Azwan, was among other reasons that also affected the cost of auto insurance.
Another insurance agent Khairul Haffiz Khairul Omar claimed that the rise in the cost of vehicle parts was a contributing factor to the increase in insurance costs.
He however said that the change in price would not be made drastically as it would first be studied by BNM and the Malaysia General Insurance Association.