General insurers urge MyCC to reconsider RM213m financial penalty

  • Business
  • Wednesday, 01 Mar 2017

New high for Dagang NeXchange Bhd

KUALA LUMPUR: The General Insurance Association of Malaysia has urged the Malaysia Competition Commission (MyCC) to reconsider the imposition of a financial penalty of RM213.45mil on all the 22 general insurers in the country.

The association, also known as Persatuan Insurans Am Malaysia (PIAM), said the grouping and and its members were disappointed with MyCC's proposed decision issued on Feb 22.

MyCC alleged the general insurers had infringed one of the prohibitions under Part II of the Competition Act 2010 (CA).

MyCC had then stated the financial penalty resulted from MyCC’s investigation into the alleged infringement in the agreement between PIAM and the Federation of Automobile Workshop Owners’ Association of Malaysia (FAWOAM) on trade discount rates for parts for certain vehicle makes and labour hourly rates for PIAM approved repairers scheme workshops.

PIAM said on Wednesday it had always worked in the best interest of the consumer and in full compliance with the directions of its regulator, Bank Negara Malaysia (BNM). 

It added the PIAM-FAWOAM agreement was reached on BNM’s directive to resolve significant consumer complaints regarding repair times in the motor insurance industry.

“PIAM sincerely hopes that MyCC will reconsider its proposed decision and the imposition of the financial penalty against its members. It will be obtaining legal advice to defend its position that this was not an anti-competitive agreement,” it said.
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