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Organised crime, new legislation and pressure to de-regulate insurance make Malaysia a complex and changing market for passenger vehicles... The vehicle theft risk in Malaysia is one of the highest in the world, with vehicles more likely to be stolen there than in the USA or the UK. Furthermore, Malaysia is one of only a small number of countries to show a consistent increase in vehicle theft since 2001. Currently, the Malaysian insurance industry is tightly regulated by the government. Potential changes to the system along with new legislation mandating immobilisers and an increased public awareness of vehicle theft could make security a much bigger concern for insurers, manufacturers and customers. SBD have been monitoring this important Asian market since 2007 and this latest report gives a comprehensive guide and analysis of the country’s theft issues, insurance market and the latest legislation. Car theft and insurance Car theft and insurance requirements for Malaysia requirements for Malaysia SBD Security research SBD Security research This report will help you: Understand how to meet insurance and legislation requirements for immobilisation Learn how thieves are targeting vehicles in Malaysia as well as the government and police initiatives in place to combat them Determine how motor premiums are created and what are the restrictions Produce a vehicle with the appropriate level of security to meet consumer demands For additional information please email [email protected] or telephone Juanita on +44 (0) 1908 305101 and she will be happy to deal with your enquiry.

Car theft and insurance requirements for Malaysia

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Page 1: Car theft and insurance requirements for Malaysia

Organised crime, new legislation and pressure to de-regulate insurance make Malaysia a complex and changing market for passenger vehicles...

The vehicle theft risk in Malaysia is one of the highest in the world, with vehicles more likely to be stolen there than in the USA or the UK. Furthermore, Malaysia is one of only a small number of countries to show a consistent increase in vehicle theft since 2001.

Currently, the Malaysian insurance industry is tightly regulated by the government. Potential changes to the system along with new legislation mandating immobilisers and an increased public awareness of vehicle theft could make security a much bigger concern for insurers, manufacturers and customers.

SBD have been monitoring this important Asian market since 2007 and this latest report gives a comprehensive guide and analysis of the country’s theft issues, insurance market and the latest legislation.

Car theft and insurance Car theft and insurance requirements for Malaysiarequirements for Malaysia

SBD Security researchSBD Security research

This report will help you:

Understand how to meet insurance and legislation requirements for immobilisation

Learn how thieves are targeting vehicles in Malaysia as well as the government and police initiatives in place to combat them

Determine how motor premiums are created and what are the restrictions

Produce a vehicle with the appropriate level of security to meet consumer demands

For additional information please email [email protected] or telephone Juanita on +44 (0) 1908 305101 and she will be happy to deal with your enquiry.

Page 2: Car theft and insurance requirements for Malaysia

New legislation mandating immobilisers...New legislation mandating immobilisers...

Vehicle theft fell in Malaysia during 2009, the first annual reduction in theft since 2001. Following a period of steep rises in theft, particularly of motorcycles, combinations of Police initiatives to apprehend Organised Criminal Gangs (OCGs) and media coverage to increase public awareness appear to have helped reverse the long-term trend. However, this does not mean that vehicle theft is no longer an issue. 2009 also saw recovery rates for stolen passenger cars fall to under 10%, whilst the average cost of a insurance claim for theft increased for the first time in five years. Both of these factors suggest rises in profit-motivated theft, targeting higher-value vehicles to be broken down for parts or to be shipped out of the country and sold for the whole vehicle price.

This evidence is supported by Police commentary, who say that the work of large-scale OCGs shipping luxury foreign brand vehicles over borders to neighbouring countries is increasing, using increasingly sophisticated, electronic theft methods to defeat vehicle security. Meanwhile, the motor insurance industry continues to be closely governed by the Motor Tariff, preventing insurers from offering any incentive for fitment of security features such as immobilisers, alarms or stolen vehicle tracking systems. The majority of the industry agrees that the time has come for progressive de-regulation of the insurance market, but parties cannot agree on the extent of these changes. Any changes designed to incorporate vehicle security into the calculation of insurance premium therefore remains at least two years away. In an attempt to increase the general levels of security feature fitment and to maintain the fall in vehicle theft, the Malaysian Road Transport Department (JPJ) recently introduced new legislation to mandate that all new passenger cars are fitted with an immobiliser system. Evidence from other countries shows that theft typically falls following the introduction of such legislation in the past, but thieves have moved on to improve their methods in recent years and could yet be able to easily overcome basic immobiliser systems which are all that are specified in the new regulations. With increases in the typical thief’s capability, new legislation and proposed de-regulation of the insurance industry, Malaysia is a complex and changing market. The current level of media and public awareness of vehicle theft mean that changes in the future are likely, but they will need to guard against the latest methods of thieves in order to maintain the downward trend in overall theft of vehicles.

Malaysia vehicle thefts and theft rateMalaysia vehicle thefts and theft rate

Page 3: Car theft and insurance requirements for Malaysia

...know what tomorrow brings...know what tomorrow brings

TABLE OF CONTENTSTABLE OF CONTENTS 1. Executive summary1. Executive summary 1.1 Introduction1.1 Introduction 1.2 Main conclusions1.2 Main conclusions 1.3 Report overview1.3 Report overview 2. Market Analysis2. Market Analysis 2.1 Market overview2.1 Market overview 2.22.2 Theft overviewTheft overview 2.3 Theft analysis2.3 Theft analysis 3. Insurance Situation3. Insurance Situation 3.1 Motor insurance overview3.1 Motor insurance overview 3.2 Changes in the motor insurance market3.2 Changes in the motor insurance market 3.3 Security requirements and benefits3.3 Security requirements and benefits 4. Legislation situation4. Legislation situation LIST OF FIGURESLIST OF FIGURES Fig. 1Fig. 1 Malaysian marketMalaysian market Fig. 2Fig. 2 New vehicle sales in Malaysia (2000New vehicle sales in Malaysia (2000--2014)2014) Fig. 3Fig. 3 Vehicle manufacturers market share (2009 vs Vehicle manufacturers market share (2009 vs 2005)2005) Fig. 4Fig. 4 Vehicle thefts and theft rateVehicle thefts and theft rate Fig. 5Fig. 5 Passenger car theftsPassenger car thefts Fig. 6Fig. 6 Most stolen vehiclesMost stolen vehicles Fig. 7Fig. 7 PIAM “Keep thieves out” postersPIAM “Keep thieves out” posters Fig. 8Fig. 8 Top ten motor insurers (2009)Top ten motor insurers (2009) Fig. 9Fig. 9 Summary of Malaysian insurance requirementsSummary of Malaysian insurance requirements Fig. 10Fig. 10 Malaysian locking system requirementsMalaysian locking system requirements Fig. 11Fig. 11 Malaysian devices for protection against Malaysian devices for protection against unauthorised use requirementsunauthorised use requirements Fig. 12Fig. 12 Malaysian alarm system requirementsMalaysian alarm system requirements Fig. 13Fig. 13 Malaysian immobiliser system requirementsMalaysian immobiliser system requirements Fig. 14Fig. 14 Security system benefits in MalaysiaSecurity system benefits in Malaysia

Malaysian Insurance Association, Malaysian Insurance Association, Persatuan Insurans Am Persatuan Insurans Am Malaysia (PIAM)Malaysia (PIAM) “Keep Thieves Out” posters“Keep Thieves Out” posters

SBD Tel: +44 (0)1908 305101 E-mail: [email protected] www.sbd.co.uk

Page 4: Car theft and insurance requirements for Malaysia

The SBD Mission... … to provide our customers with the knowledge, insight and understanding they need to develop class leading Telematics and Vehicle Security products and improved Cost Of Ownership performance

About the report author...

For a quotation or further information please contact Juanita Appleby on:

Email: [email protected]

Phone: +44 (0)1908 305 101

Fax: +44 (0)1908 305 106

Pricing:

Report Electronic pdf copy

2300 - Malaysia car theft and insurance £1600 / €2000/ $3200

David Green - Vehicle Security Technical Specialist

David graduated from Cardiff University with an honours degree in Mechanical Engineering. He has worked on many projects focused on vehicle security and cost of ownership, and is currently responsible for managing the UK insurance group rating process for one of SBD’s major clients. He is also responsible for monitoring all the latest news developments in vehicle security and insurance requirements across the globe. David specialises in Smart Key technology and has authored several SBD studies on the subject.

Related Services SBD Security Technical Support In order to react to global market forces and requirements, you need continuous investigation, direct contact with many related organisations and a good understanding of historical trends in vehicle theft and the technical aspect of security system development. All of that equates to significant investment in time and money. But with SBD, the investment is minimised without compromising the benefits. SBD offer a flexible range of support packages that can be tailored to suit your needs:

Monthly reports to keep you up to date with the latest theft situation in your chosen markets

Technical Support Hotline to answer queries and give advice whenever you need it

Expert briefing meetings on insurance requirements, theft trends and the latest theft methods

On-site design support to ensure designs are optimised and compliant with existing and future requirements

Related Reports Global theft and insurance requirements research SBD’s research on market needs, insurance requirements and theft trends over a wide range of global markets. These detailed reports focus on the specific information in each country that is needed to meet the market requirements and help reduce the theft risk of vehicles. Countries available:

Australia / New Zealand Belgium Brazil China Europe India

Vehicle crime in the 21st century and the impact of electronic theft methods This report provides a global overview of the changing theft patterns since the 1990s. It includes an analysis of the impact of readily-available information on the internet, changes in legislation and the effect of the world recession to provide a comprehensive picture of vehicle crime and what the future holds. Reference SBD/SEC/2196

Japan Malaysia North America (United States and Canada) Russia Sweden United Kingdom