Spot The Different: Loading Imposed

Q	:	What is loading and when will insurance companies apply loading?
A	:	Loading is an additional surcharge imposed on the basic premium rate. Factors that may affect the risk where loading can be imposed are but not limited to age of vehicle, the driver's driving experience and adverse claims experience.

Good Day.....we have been deeply involved in this business sometimes ago yet also
we wonder why premium from Etiqa is significantly lower than other convetional
insurer. No joke..we never been an agent rather than with Takaful Insurer.

So recently we come across with an astounding discovery to this question. See the
real example (both in our system)

Vehicle No.	WUA9486
Period of Cover	22/06/2011 to 21/06/2012
Cover Note Status	CANCELLED
Agent Code / User ID	ML00916 / ML00916-01
Agent Name	Serasi Link
Insured Type	Individual
Insured Name	ALMY BIN ROKMAN
Date Of Birth	18/08/1989
Driver's Age	21
Gender	MALE
Nationality	MALAYSIAN
Marital Status	SINGLE
Race	Malay
Address	BLK A02-1-13, JALAN SAMUDRA 7, TAMAN SAMUDRA, 68100, BATU CAVES, SELANGOR
Coverage Type	COMPREHENSIVE
Model	31*4503
Description	PROTON PERSONA 1.6 AT
Capacity	1597.00 CC
Seating Capacity	5
Year Make	2010
Engine No.	S4PHQN0634
Chassis No.	PL1CM6SRRAG279342
Log Book No.	9588225
Sum Insured (RM)	45000
Basic Premium (RM)	1395.5
Total Basic Premium (RM)	1395.5
Vehicle's Age Loading (%)	0
Insured's Age Loading (%)	15
Claim Experience Loading (%)	0
Loading (%)	15
NCD From	Allianz General Insurance Company (Malaysia) Berhad
NCD Effective Date	22/06/2011
NCD Percentage (%)	25
Total Extra Coverage (RM)	82.5
Gross Premium (RM)	1286.12
Total Payable (RM)	1296.12

So above covernote were cancelled because it was a bit expensive compare to below
effected covernote from Etiqa. We can concluded on something here,some insurer
imposed certain loading on driver's age and the vehicle's age. So in future,its
advisable to ask your agent/insurer whether any loading imposed in your cover note...
and you may save some money.

See it yourself

West Malaysia  Type of License Normal Vehicle  Usage Private Use  Make PROTON  Vehicle Model Persona 1.6AT H-Line  Other Vehicle   Vehicle Capacity 1597  Number of Seats 5  Number of Passengers 4  Year of Manufacture 2010  New Vehicle No  Vehicle No. WUA9486  Chassis No. PL1CM6SRRAG279342  Engine No. S4PHQN0634  Number of Claims 0  Log Book No 9588225  VecClassCode Private Car  Vehicle Class Usage Private Use(Drive to Work / Daily use)  Certificate of Insurance MX1 - Private Car - Participant Driving  Carrying Goods   Purchase Price 65,000.00  Garage Parking Lot - Covered  Safety Feature None  Anti Theft Device CODE 3 -- Factory Fitted Alarm  Loading A 0  Terminal Code   Sum Insured 45,000.00  NCD Status Lock  NCD Verification Status Unreplied  NCD Level 1  NCD Entitlement 25.00  Staff   Effective Date 22/06/2011  Driving License Full License  Company Registration No

Cover Type Information

Cover Type Information Sum Insured Premium Comprehensive 45,000.00 1,046.63