The arrangement was put in place in response to a clear directive from BNM to the general insurers in 2011, to address disputes between workshops and general insurance companies over insurance claims payments for motor repairs. Such disputes had given rise to protracted delays in repairs and had caused significant inconvenience to consumers, the central bank said. Measures are currently being taken by BNM to implement broad reforms in the motor insurance market, which includes the gradual liberalisation of the motor insurance tariffs. This aims to promote a more competitive motor insurance market, while ensuring affordable motor insurance premiums in the long term . The central bank will continue to pursue a resolution of this matter in the best interests of the general public.

Source: The Edge Markets March 01, 2017 10:41 UTC