5% rebate for Motor Insurance

[jimmyay]

extract from THESTAR
http://www.thestar.com.my/news/story.asp?file=/2009/5/18/nation/3924369&sec=nation

PETALING JAYA: Come July 1, car owners who buy motor insurance directly from insurance companies without using the services of an agent will qualify for mandatory rebates, a move that could render agents redundant.

The move would see new customers being given a 5% rebate on their insurance if they buy it via channels such as the Internet, telemarketing, direct mailing or by walking into the insurance company. These customers would also get a 10% rebate for renewals in the second year.

This is a good move. Some company cut cost by use of Internet but they never reward the consumer...and instead consumer have to pay more for convenience fee...sigh (i am referring especially to bank)

[bslee]

This is Malaysia. NOTHING comes for free nor really sincere. Somebody makes money from someone, along the way or it just have to come from somewhere.
Live and let live.

[smoothead]

So basically this means all the agents will be out of jobs soon...? Don't think this will work. The agents will be up in arms, if you ask me!

I mean, does this means we do not get any service anymore if we buy direct from the insurance company? Who is going to service us if anything should happen, eg, if we need to make a claim or something, or do we service ourselves, ie, doing it on our own by taking the trouble to go the the insurance company, running about...?

Food for thought...

[bslee]

Who is going to service us if anything should happen, eg, if we need to make a claim or something, or do we service ourselves, ie, doing it on our own by taking the trouble to go the the insurance company, running about...?


Heh!..Read Mr Sentinel's topic and his warpath on an insurance company.

[Sentinel]

Actually the agents are car dealers themselves, motorbike shops making some side income writing out policies and some insurance agents. I feel sorry for them for losing this business but then if your insurance is RM2,000, there is a saving of RM100 for the motorist / vehicle owner. I think we have to pity our family needs first lor...

[Fabe18]

U get savings from buying direct. But then have they put in place the claiming processes for end-users which is, I assumed, still agent-centric?? This would be one of the questions worth pondering on. I guess the better agents would still survive as they still have an edge over the run-of-the-mill agents who just sell blindly..

[bslee]

U get savings from buying direct.

Whatever it is lah..everyone is at the whim and fancy of insurance companies. Sometimes I even view it as legalized scam. They can muck around the premiums, make life difficult for you on claims and scores of in between hidden terms with cryptic language thats are not entirely understood by everyone (although everyone is cornered to agree to it all). In the 1st place it IS supposed to be understood by everyone or its actually engineered to be on THEIR advantage. On top of it all, we're all living in a very rogue country where they stipulate MORE conditions making it even harder for genuine claims mainly because they claim they're on the loosing end. Who's to verify they're "loosing out"? You, me, the gahmen DGI?..bah! Things that were easy before now become a hassle and time consuming to attend, all because we live in a rogue and rampant criminal infested society.
SAD!..

[MasterQ]

I agree with you. I am a passive insurance agent helping out my wife. She is attached to an agency who gets the 10% of which she gets only 5% as she cannot meet the commitment to demand for 10%. And I believe many insurance agents are like my wife and they are the frontliners. They go to your house or office to collect your premium and renew your road taxes. From experience, like almost all Malaysians, it is usually the last minute that they badly need your services eventhough they have been informed 2-3 weeks earlier. Buy direct from the insurance companies, and you have strangers dealing with you.

There is also a situation where you are involved in an accident and you need someone to assist you, won't you think having an insurance agent and usually he/she is your friend or someone you really know at your side to assist you is a great help? I usually offer this service to her clients. I become their adviser, mediator/negociator for on the spot settlement, facilitator at police station, driver, errant boy and sometimes 'ambulance' driver. There can be 101 things and follow ups to take care of. When you buy direct from insurance companies, you call a toll free line and talk to an unsympathetic stranger.

For first time buyers, insurance agents has to fill up the form etc and ensure that the insured is adequately covered. How many of you know that if you are not the only one using the vehicles, you are entitled to name the second driver for free and for every additional driver, you are charged RM 10 for every driver named. In the event of an accident, you will not faced any problem with your claim. Now you know why first year, the company is only giving you only 5%. They just want your subsequent year business which is rather unfair.

The complaint about agents trying to sell unnecessary coverages for other areas should not be the case. While Japan are insurance "saturated," Malaysia is on the other end of the scale. Many are still without PA which is the cheapest yet most valuable. I have sold car, house, medical, PA, life and business insurance to those I met. And of course there are also minor insurances that I wouldn't want to trouble you with. But one thing I will never do -that is to PUSH. I only recommend. And I like to add here that it is the insurance agents who are the most welcomed persons at funerals and accidents. Unfortuanately, in Malaysia it has to be such occasions that people start to appreciate insurance agent. At all other time, they are like pests!

[USJ27Resident]

And I like to add here that it is the insurance agents who are the most welcomed persons at funerals and accidents. Unfortuanately, in Malaysia it has to be such occasions that people start to appreciate insurance agent. At all other time, they are like pests!

Buddy - not all... the professional ones behave like professionals... they sell you what you need/want... and advises you on what you can afford...

its the hit-and-run ones that would HIT you on maxx coverages and then they hilang.... commission collected mah... THOSE are PESTS!!

[Phres]

the other "pests" are those credit card salesmen they come and pester you to sign up this card, that card....in spite of me telling them i don't want any more cards, they still want to talk and persuade you to sign up one more card...
:D

[Sentinel]

Buddy - not all... the professional ones behave like professionals... they sell you what you need/want... and advises you on what you can afford...

its the hit-and-run ones that would HIT you on maxx coverages and then they hilang.... commission collected mah... THOSE are PESTS!!
Yup, I still use a specific agent who handles all the stuff - insurance renewal, road-tax renewals, claims - so the 5% is for service rendered. No point going to those temporary fly-by-night agents. This agent we use comes to the house for the files and to deliver the documents, so 5% is worth it.

[Sentinel]

the other "pests" are those credit card salesmen they come and pester you to sign up this card, that card....in spite of me telling them i don't want any more cards, they still want to talk and persuade you to sign up one more card...
:D
As a consumer, you have a choice. Just refuse them gently lor afterall they are also trying to make a living... These teenage kids could be your neighbors' kids too trying to make a worthwhile living... no point categorizing them as 'pests'...

[pucman]

So basically this means all the agents will be out of jobs soon...? Don't think this will work. The agents will be up in arms, if you ask me!

Food for thought...

It will mean they have to REALLY work for their money.ie. find other jobs.

Insurance is big bucks for these people who do minimal paper work and earning good money.

There are still lots of vacancies in sectors that are occupied by foreigners. If they 're not lazy or grumpy, they won;t be jobless.

The consumers need every savings to deal with the economic recession.

[bslee]

Insurance is big bucks for these people who do minimal paper work and earning good money.


Hmmmm... if anyone thinks he/she is in the service industry with most ambition and hope to make big bucks out of every sale, then "wash hands" or "forget about service or aftermath", thereon and on the vicious cycle continues till you out of the business or made it rich, then DO NOT be in the service industry. Everyone who buys from such sales individuals are going to suffer same or similar fate like Mr Sentinel here. Earning big bucks is well and good but it also means hard work (blood, sweat n tears) to earn it all. No such thing as easy money with easy work, unless its something illegal or dishonest. Selling an insurance policy should never be equated to selling bus tickets.
Not only the gahmen be blamed as rogue or hopeless, more crooks and rogues exist among the rakyat.

[Sentinel]

Not just the agents... the BIG QUESTION here seems to be why we (I am also a culprit) Malaysians have to buy insurance for our vehicles and renew road taxes thru agents? How come we do not go to the insurance companies direct or go to JPJ and renew our road taxes?

[USJ27Resident]

come to think of it... i never knew that premiums bought from an agent was "marked up" by 5% as service charge ... always thought that buy from agent or from insurance company - was the same premium... based on the vehicle cover.

always had thought that if agent brings in a policy, the insurance company would PAY the agent the percentage from the premium collected....

so if this is the case - the INSURANCE COMPANIES basically taking everyone for a ride... from the agents to the policy holders!

NOW i know....

heck, when claim pulak - another long story [thread!] :rolleyes:

[rakyat]

come to think of it... i never knew that premiums bought from an agent was "marked up" by 5% as service charge ... always thought that buy from agent or from insurance company - was the same premium... based on the vehicle cover.

always had thought that if agent brings in a policy, the insurance company would PAY the agent the percentage from the premium collected....

so if this is the case - the INSURANCE COMPANIES basically taking everyone for a ride... from the agents to the policy holders!

NOW i know....

heck, when claim pulak - another long story [thread!] :rolleyes:

Its actually 10% nad its called commission not service charge :D

Afew years back, the insurance co. would rebate the full 10% if the client is insured 'directly' but after numerous complaint from the agents, BNM decided that there will be no rebate for motor insurance (other classes you still get full rebate up to 25% depending on the class of insurance)

Ins. Co. not taking you for a 'ride'-la the commission table is stipulated by PIAM and is standard across the industry (10% for motor and 25% for PA). It used to be as high as 65% for fire insurance and 40% for motor back in the 70s :eek:

B'coz of competition, most insurance co. will rebate the full % back to the client if they deal with the co. directly but there are a few ins. co. which have a 'no direct business' approach i.e. even if you approach the ins. co. directly, there is no rebate and your account is parked with some phantom agent.

With this latest move, it is beneficial to the direct customer as they will have a choice whether to get the rebate or 'the service' and they will know upfront how much the service is costing them. But whether the implementation would be successful or will the agents pull some strings.....

[bslee]

Ah!.. whatever it is lah..debate till the cows come home, if I can avoid having anything to do with insurance, I WILL!
I've absolutely never will believe insurance here in this country is God sent or really beneficial to oneself. Its just another money making scheme.

[jimmyay]

Hi everyone,

There is a CHOICE now. If u think u need agent to service you, go to them, else drop by at the insurance company branch (and get a discount).

As a agent, if you are good at what you do, your client stay with you.
As a consumer, if you are good at what you need, you get saving.
FAIR ENOUGH!!


It is just a tips to save some money.

[jimmyay]

Ah!.. whatever it is lah..debate till the cows come home, if I can avoid having anything to do with insurance, I WILL!
I've absolutely never will believe insurance here in this country is God sent or really beneficial to oneself. Its just another money making scheme.

Choosing & buying an INSURANCE is very important but never urgent.
When it become urgent...may god bless you.