| "Premium is
the payment for a specific time period, paid by you for the insurance
policy" |
|
Policy
A written document that make up the insurance contract between an
Insured and Insurer. A policy spells out the terms, conditions
and exclusions to the contract. |
| |
Policy Period
The duration of the insurance contract. |
| |
Premium
The payment for a specific time period, paid by you for the insurance
policy. |
| |
Sum Insured (Market value of your vehicle)
The
amount stated in the policy that the insurance company agrees to
pay. This sum will be the maximum of the Insurer's liability in an
event of claims.
|
| |
Claim
The compensation to the Insured by the
Insurer. |
| |
What is Renewal?
Policy renewal occurs when
your existing policy has expired and you wish to extend the duration
of the policy with your Insurer through continuous payment of premium.
A new policy will replace the existing one. Renewal constitutes a
new contract between the Insurer and you. If there is any material
change in the risk, the company must be informed. Otherwise, the
company has the right to deny liability in the event of a claim. |
| |
Policy Excess
The agreed amount you have to
bear in the event of an accident. |
| |
What is Compulsory Excess Fee?
PIAM Motor Tariff
imposes the Compulsory Access Fee, which is applicable if the car
is driven by: |
 |
A person with a probationer license ("L" license). |
|
A person with a "P" license. |
|
A person below 21 years old. |
|
A person who is not a named driver. |
|
| |
How is Compulsory Excess Fee calculated?
This
is a specfic fee ( RM 400 ) that is added to your Policy Excess amount.
For instance, if the loss incurred is RM 3000 and your Insurer sets
RM 600 as your Policy Excess amount, then the calculation will be
as follows : |
|
You are to pay |
| |
- RM 600 (Policy Excess) + RM 400 (Compulsory Excess) = RM1000 |
|
And the Insurer will pay |
| |
- RM 3000-(RM 600+ RM 400)= RM2000 |
|
|
|
|
|