#Law Reform
Target:
Persatuan Insuran Am Malaysia
Region:
Malaysia

Recently motorcycle users are being charged additional 50% premium for All Riders insurance. This has affected all motorcycle users, regardless whether they are riding small bike or big bike. While the intention of all riders insurance clause is understood, however, the additional 50% premium is too exorbitantly expensive to the users and it is seem to penalise all the motorcycle users. As a comparison to the private car insurance, an additional named driver will be only charged RM10, whereas for motorcycle users, it is will be at least minimum RM100 depending on the sum insured.

Most of the motorcycle users are using their motorcycle as alternative for cheaper transportation and to avoid traffic jam. Majority of the motorcycle users are riding below 250 cc in Malaysia. As per PIAM website, it is stated "strongly recommended", but in actual facts, there is no option available to us as the motorcycle users.

There are about 13 million motorcycle users (MAA: 2017). Assuming 3/4 of it are paying RM200 per All Riders premium, the insurance companies are easily collected about RM2 billion yearly from the motorcycle users. This amount will be kept in the insurance coffer and it will keep increasing from year to year.

We, the undersigned, call on the PIAM to either:

1. Reinstate an option for Single Rider clause; or
2. Reduce the 50% All Riders premium charged, instead it should be based on motorcycle cc where for users use 250 cc and below shall be charged RM10 or any amount less than RM50. Where for another users, the maximum RM100 should be appropriate; or
3. For those users who are organising a group trip, a separate insurance scheme should be made available to them.

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The Lower Motorcycle All Riders insurance premium petition to Persatuan Insuran Am Malaysia was written by Wan Muhammad Wan Abd Rahman and is in the category Law Reform at GoPetition.