PIAM supports motor cover framework

The General Insurance Association of Malaysia (PIAM) fully supports
measures for wider access to motor cover as part of the industry's
transition towards the New Motor Cover Framework which will come into
effect next year.



In a statement here today, PIAM executive director Lim Chia Fook
said its members are putting the systems in place to be able to cover
such "displaced vehicles" through the Malaysian Motor Insurance Pool
(MMIP).



"All the insurers should be able to do so by next week," he said in
response to yesterday's announcement by Bank Negara Malaysia that all
motor vehicles, irrespective of age, will be provided cover at normal
market premium rates including the permitted loadings.



Lim said it would take some time for the back-end facilities and
systems to be prepared so that each insurance company and it branches
could offer either its own motor cover or issue the cover on behalf of
MMIP.






The MMIP was also an industry initiative to provide motor insurance as
an insurer of last resort for vehicles that are unable to secure cover
from the normal market, Lim added.



He said PIAM will continue to work closely with all stakeholders towards ensuring a smooth transition to the New Framework.



"PIAM is part of a joint working committee comprising all
stakeholders which meet regularly to monitor the transition towards this
new Framework," he added. -- Bernama