KUALA LUMPUR, 5 Feb: The former Chief Economist of Bank Islam, Azrul Azwar AHmad Tajuddin said that the vehicle insurance premium adjustment imposed on takaful companies is an additional burden to the people.
“Despite increasing it gradually to protect against unexpected risks, however the increase of 1 percent is a very big increase.
“Maybe we look at this 15 percent as being small and it is paid once a year. But this increase is happening simultaneously with various increases in price of goods and services.
“This is a doubled increase,” said Azrul, quoted from Keadilan Daily.
On 29 January, Bank Negara Malaysia approved the increase of takaful insurance premiums, involving motorcycles, cars and express buses, starting from 15 February.
Azrul said that the group which would be most affected by the 15 percent increase in premium are rural communities because they require at least a motorcycle, for which insurance coverage is mandatory.
“In the city, there is public transportation if you want to save. But it is difficult for residents of rural areas to get public transport and they need to use private vehicles to get around.
“Villagers who use motorcycles still have to pay insurance. If they refuse to pay, users cannot receive road tax. Villagers are forced to bear the increase and city dwellers are also burdened.
“We cannot predict what will increase next after this. Who knows, after this the road tax may increase,” he said.
