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3Cs GUIDELINE TO PROPER MOTOR INSURANCE COVERAGE

Kuala Lumpur, December 14, 2001 - The General Insurance Association of Malaysia (PIAM) offers a simple 3Cs guidelines to help consumers ensure they are indeed properly insured.

Consumers are advised to:

Complete their motor insurance applications honestly and accurately before signing it.
Check their policies upon receipt to ensure the information stated is accurate.
Contact their insurers if the information in their policies is inaccurate or they need to update the information in their existing policies.

Whether it is buying a new or renewing an existing motor policy or when submitting a claim, PIAM's Executive Director CF Lim said that it is critical that consumers provide the following information accurately:

i)	New IC number of Policyholder / Driver
ii)	Make and Model of Vehicle
iii)	Year of Manufacture of Vehicle
iv)	Capacity of Vehicle
v)	Gender of Policyholder / Driver
vi)	Age of Policyholder
vii)	Residence Address of Policyholder / Location where Claim Occurred

Lim says that failing to provide the above information correctly may result in the contract being repudiated in the event of a claim as the completed application forms the basis of the insurance contract. For the same reason, he also advises consumers to never sign a blank application form. This is an important responsibility on the part of the consumer in ensuring that they receive the cover that they pay for.

Consumers are also advised to check through their policies upon receipt to ensure that the information provided in the application form is correctly transferred to the policy document. The policy is the official contract between the consumer and the insurance company and hence, must be accurate and updated.

Furthermore, consumers, to safeguard their own interest, must report any discrepancies in either their application forms or the policy documents to their insurers.

"They have been cases where the consumers have had their car stolen, file their claims with their insurers companies and only to discover that they have 3rd Party and not Comprehensive Covers," says Lim.

Besides educating the consumers to provide accurate information and checking their documents to ensure that they receive the cover that they have pay for, Lim says that PIAM also collates this data from its member companies for statistical analysis so as to continue its work towards a fairer and more equitable motor premium rating. The information is also used in identifying and reducing the incidence of motor insurance fraud.

Source: PIAM