Mandatory rebates for motor insurance

From July 1, motor insurance can be purchased directly from insurance companies and the commission normally paid to the agents will be mandatorily rebated to policyholders who are the actual owners of the vehicles.

The rebates are:

• 5% in 1st year
• 10% in renewal years

The responses by various parties on the above:

• Agent: livelihood of agents would be affected
• BNM: promote the promulgation of alternative channels
• Federation of Malaysian Consumers Association: agents will have less cross-selling opportunities

Source: The Star