The General Insurance Association of Malaysia (PIAM) has said that it has yet to receive a response from the Malaysia Competition Commission (MyCC) regarding the two organisations’ dispute over motor insurance claims for vehicle repairs.
“PIAM and its 22 general insurance members have, through their solicitors, lodged their written representations with MyCC,” a representative of the insurers’ group told The Sun Daily.
“PIAM has not received any feedback from MyCC thus far in respect of this matter.”
In February, MyCC proposed to fine PIAM members a combined MYR213.45 million (US$49.22 million) for allegedly violating competition regulations by entering an agreement with the Federation of Automobile Workshop Owners’ Association of Malaysia for fixed discounted rates for parts of several vehicle makes, as well as hourly labour charges for workshops under the PIAM Approved Repairers Scheme.
However, the country’s central bank, Bank Negara Malaysia (BNM), came to PIAM’s defence, saying that the agreement was made following its directive to solve consumer complaints about long repair times in the motor insurance sector. BNM also said that MyCC’s proposal could be quite detrimental to consumers.
Last March, MyCC said that it would take into account additional evidence from BNM and PIAM in its decision, as the order to fine the insurers was not yet final.
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