The current market practice of insuring motor vehicles without reference to any vehicle valuation database has led to over-insurance or under-insurance by consumers and disputes over the market value of vehicles at the point of loss. The subjectivity in determining a vehicle’s market value could potentially result in abusive practices to the detriment of consumers.
With the availability of industry motor vehicle valuation databases, insurers and takaful operators can now determine the market value of most vehicles both at the point of sale and at the point of loss.
The objective of this circular is to ensure consumers are properly advised on the appropriate market value of their motor vehicles to address over-insurance or under-insurance. Additionally, consumers will be assured of an objective determination of the vehicle’s market value at the point of loss.
The objective of the circular is to ensure consumers are properly advised on the appropriate market value of motor vehicle to address over-insurance or under-insurance. In addition, consumers will also be assured of objective determination of market value of vehicle at the point of loss.
This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking
