Friday

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 SAMUDRA68100BATU CAVESSELANGOR
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
Number of Passengers
Year of Manufacture
2010 
New Vehicle
No 
Vehicle No.
WUA9486 
Chassis No.
PL1CM6SRRAG279342 
Engine No.
S4PHQN0634 
Number of Claims
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
Terminal Code
 
Sum Insured
45,000.00 
NCD Status
Lock 
NCD Verification Status
Unreplied 
NCD Level
NCD Entitlement
25.00 
Staff
 
Effective Date
22/06/2011 
Driving License
Full License 
Company Registration No
 
https://cgs.etiqa.com.my/insurance/images/common/arrow1.gif


https://cgs.etiqa.com.my/insurance/images/common/arrow1.gif
Cover Type Information
  

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



3 comments:

etiqaslink said...

We are grateful to be with Etiqa, most other insurer are now imposed loading.

Ct Nadirah Maruee said...

hai..sorry but can u explain more? recently i just subscribed an Etiqa Takaful for my car from an agent. i've been charged for loading surcharged 15%. The agent explained to me that is is because my age is under 23.. but when i google about it..there is no clear description about it.. TQ

fyEk said...

Hi, i just renewed my car insurance.. my 4th driver had been imposed 15% loading as he has not yet reached 25.. isnt that contradict with this post?

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