MMIP insurance covers now available at Pos Malaysia outlets

The Persatuan Insurans Am Malaysia (Piam) last week announced that Malaysian Motor Insurance Pool (MMIP) insurance covers will be available to the public at Pos Malaysia outlets, confirming an earlier report by The Malaysian Reserve.
With effect from July 10, it said private car and motorcycle owners can purchase MMIP's insurance covers from Pos Malaysia outlets throughout the country including Sabah and Sarawak.
In order to immediately address accessibility problems in Sabah and Sarawak, it said insurance for taxis and buses will also be made available from the same day, while those in Peninsula Malaysia from July 24.
"In the current scenario where the motor insurance market is experiencing high loss experience, many insurers have either declined or are scaling back on underwriting risks especially third party insurance. As such, an increasing number of motorists are turning to the MMIP for insurance cover," Piam said in the statement.
On July 23, The Malaysian Reserve reported that the central bank was on the verge of appointing Pos Malaysia Bhd as the agent for motorists to buy motor insurance from the industry pool, now that most insurers have declined to underwrite directly that segment of the insurance market.
It was reported that Pos Malaysia, the national postal services provider which has been in the red for financial years 2007 and 2008, will secure the contract to ensure that motorists are able to secure the third party insurance cover.
In the past weeks, more and more motorists found themselves turned away by their insurer when they wanted to renew their third party cover. Instead, they were told to shop around at other insurance companies that may still underwrite that segment, but to little avail as most general insurers and takaful operators have stopped underwriting directly the risk due to the segment's high loss experience.
In light of the increasing difficulty, Bank Negara Malaysia (BNM) which regulates the insurance and takaful industry had turned to Pos Malaysia to act as an agent on behalf of the motor insurance pool, the insurer of the last resort.
In its statement, Piam said in order to provide convenience and accessibility to the public, MMIP and Pos Malaysia have formed a strategic partnership to capitalise on Pos Malaysia's extensive network of offices throughout the country, in both the urban and rural areas. Pos Malaysia has 684 outlets nationwide which will provide MMIP insurance with 578 outlets in Peninsula Malaysia and 106 in Sabah and Sarawak, it said.
Furthermore, it said Pos Malaysia already has the necessary experience, human resources and IT facilities in place to provide the MMIP's insurance covers.
"This service will be an extension of the existing insurance renewal service that is already available at Pos Malaysia outlets as it currently acts as agents for eight insurance companies and three takaful operators," it said. In addition to insurance renewal, it said Pos Malaysia also offers the renewal of road tax for private vehicles on behalf of Road Transport Department. The MMIP was formed in 1992 to ensure that all vehicles on the road would not be without access to the minimum motor insurance cover required by law.
The MMIP also provides insurance for vehicles that are considered high risks and are unable or have difficulty in securing motor insurance from the normal market.
The liabilities and expenses of the MMIP are shared equally by all the 33 general insurance companies. Currently, the MMIP utilises the branch office networks of two insurers, Multi-Purpose Insurans Bhd and Uni Asia General Insurance Bhd, who serve as the servicing insurers for MMIP. Both these servicing insurers will continue to provide MMIP insurance covers together with the Pos Malaysia outlets.

(This story appeared in The Malaysian Reserve on July 13, 2009. The Malaysian Reserve is a daily business/finance newspaper published out of Kuala Lumpur, with a sectoral page on insurance & takaful called UNDERWRITER, appearing on alternate Wednesdays)