PDA

View Full Version : Car insurance discount ?



pucman
30-06-2009, 12:38 AM
Does anybody know whether it is confirmed there will be a discount if we go directly to the insurance company instead of through agents this coming 1st july ?

rakyat
30-06-2009, 09:28 AM
Yap... 98% confirmed.

5% rebate for 1st year & 10% discount for subsequent yrs but most likely need to agree to disclaimer i.e. no agent's service in the event of claims since going 'direct'

Its not only for motor insurance... it include all classes of general insurance purchased by individual (10% up to 25% depending on classes of ins.).

Actually, they should impose this on life insurance as the commission is much higher (35%) and there is hardly any service since its 'automatically renewed' while general ins. the agent need to visit the customer every yr for renewals and earn on average 15%

MasterQ
30-06-2009, 11:42 AM
Actually, they should impose this on life insurance as the commission is much higher (35%) and there is hardly any service since its 'automatically renewed' while general ins. the agent need to visit the customer every yr for renewals and earn on average 15%
For car insurance, the insurance agency gets only 10% (and they have a sales quota to meet) and it shares this with the sales agents of which the agents get only 5%. So if your car insurance premium is RM 1,000, the agent gets only RM 50 in commission and he has to see you personally to collect the premium from you. If you need him to renew your road tax for you, then he will charge you another RM 10. So if you think it is worth saving RM 50 which is the discount you will get by buying direct, do you think you want to take the trouble to go to JPJ or the Post Office to renew your road tax?

The insurance company is not providing the renewal of road tax service. And God helps you should you get into an accident. It has been already 4 months since I made a claim for loss of use of my car and I have yet to see the money in the post. Meantime, I have to call and call and chase Hong Leong for my money. I didn't want to trouble my agent as I understand she just earned RM 12.50 as the commission when I bought my insurance for my old car.

pucman
30-06-2009, 01:48 PM
So if you think it is worth saving RM 50 which is the discount you will get by buying direct, do you think you want to take the trouble to go to JPJ or the Post Office to renew your road tax?



Not everyone is busy or rich.

There are many people who are unemployed or retired.

For them, rm 50 is a lot.

rakyat
30-06-2009, 01:55 PM
For car insurance, the insurance agency gets only 10% (and they have a sales quota to meet) and it shares this with the sales agents of which the agents get only 5%. So if your car insurance premium is RM 1,000, the agent gets only RM 50 in commission and he has to see you personally to collect the premium from you. If you need him to renew your road tax for you, then he will charge you another RM 10. So if you think it is worth saving RM 50 which is the discount you will get by buying direct, do you think you want to take the trouble to go to JPJ or the Post Office to renew your road tax?

The insurance company is not providing the renewal of road tax service. And God helps you should you get into an accident. It has been already 4 months since I made a claim for loss of use of my car and I have yet to see the money in the post. Meantime, I have to call and call and chase Hong Leong for my money. I didn't want to trouble my agent as I understand she just earned RM 12.50 as the commission when I bought my insurance for my old car.

I think u got the wrong concept of 'sub-agents'; the agent actually is the rent-seeker & do not do any work except 'renting' out his license; it is the sub-agent or sales agent who does the running round & gives part of the commission to the agent for using his/her license. The risk is the abscondment of the sub-agent and the agent is wholy responsible for the o/s payment to the ins. co.

If u do it the other way round then I can intro many used car dealers to u :D

jaysubra
01-07-2009, 12:08 PM
According to MAA the 5% discount is given for 1st year from premium after NCD discount for this year and 10% from next year onwards.

and they also said it is applicable for motor vehicle only....not other general insurance.... :rolleyes:

pucman
01-07-2009, 07:25 PM
According to MAA the 5% discount is given for 1st year from premium after NCD discount for this year and 10% from next year onwards.

and they also said it is applicable for motor vehicle only....not other general insurance.... :rolleyes:


I got my 5% discount today. What do you mean by 10% ? You mean next year I get 10% rebate ? :D

MasterQ
01-07-2009, 08:12 PM
For the first year, the insurance company has more paper work to do keying in your personal and vehicular information . For Year 2, since the information has be captured, renewal can be easily done. But more to this is the competition they will face in this competitive world. So they offer you a 10% to retain you. If you intend to purchase your insurance with a different insurance company, I wonder whether you will enjoy the 10% discount with the new company.

pucman
01-07-2009, 10:31 PM
For the first year, the insurance company has more paper work to do keying in your personal and vehicular information . For Year 2, since the information has be captured, renewal can be easily done. But more to this is the competition they will face in this competitive world. So they offer you a 10% to retain you. If you intend to purchase your insurance with a different insurance company, I wonder whether you will enjoy the 10% discount with the new company.

But I have been going direct since one to two years ago. How come I get only 5% ? They should have captured my info one to two years ago.

alexwsk
02-07-2009, 10:32 AM
I got my 5% discount today. What do you mean by 10% ? You mean next year I get 10% rebate ? :D

may i know where do you buy yours?

alexwsk
02-07-2009, 10:34 AM
But I have been going direct since one to two years ago. How come I get only 5% ? They should have captured my info one to two years ago.

coz they start implement this yr ma :o

rakyat
02-07-2009, 02:16 PM
But I have been going direct since one to two years ago. How come I get only 5% ? They should have captured my info one to two years ago.

It has nothing to do with keying in the info coz the discount is applicable for ppl who are renewing their policy hence already have info in the system. It is to pacify the agents and this was one of the criteria set by the ins. co. b/4 agreeing to the direct discount.

Previously there was no direct discount for motor ins. but other classes u get full rebate. July onwards there is a 5% discount for 1st renewals and 10% (full rebate) subsequently.

Only for motor & not other insurance? Most ins. co already allow full rebate for non-motor purchased directly previously but in a few months time they will oso offer full rebate for agency source if you decide to renew directly. 15% for fire & 25% for PA!!!!