More responses on motor insurance rebate

The recent decision to grant 5-10% rebate to policyholders buying motor insurance direct has resulted in different responses from different parties:

Deputy Finance Minister:

• Poicyholders will continue to use agents if their services are excellent
• This practice is in line with the rest of the world
• The aim is to increase the public's access to insurance
• Also to bring the industry up to speed with various technological advancements
• Remisiers have set the precedent, now you can buy shares direct

Proton Dealers Association Malaysia (Peda):

• It will destroy the automotive eco-system, particularly the dealers network
• Automotive dealers will lose > 20% of their income
• Motor insurance premiums are > RM1 mil per year per dealer agency
• Peda will call for a boycott
• It will contribute to a higher unemployment

EON Bank:

• No impact on its insurance business if Peda calls for a boycott

Source: The Star, Business Times 1 & 2