SPAD worried over MMIP 'black box' policy:wireless telecommunication technologies, Insurance telematics

SPAD worried over MMIP 'black box' policy

Posted on 31 January 2016 - 03:56pm
Last updated on 31 January 2016 - 05:08pm

KUALA LUMPUR: The Land Public Transport Commission (SPAD) is concern over the compulsory "black box’ policy for buses by Malaysian Motor Insurance Pool (MMIP) which comes into effect from tomorrow (Feb 1).

SPAD chief executive officer Mohd Azharuddin Mat Sah said the telematics-based insurance product by MMIP is inconsistent with SPAD’s safety, health and environment code of practice (iCOP-SHE) policy for bus operators.

“We were caught by surprise with this latest move by MMIP,” he said. “For us, the GPS installation in express buses and tracking via our Performance Monitoring Hub System (PMHS) are sufficient.”

Under iCOP-SHE policy, he said the GPS-tracking device can be installed at any authorised installers as long as it interacts with SPAD’s PMHS control centre.

Meanwhile, Malaysia Competition Commission (MyCC) will conduct a probe whether the required telematics-based insurance product and black box installation by a sole vendor are against competition.

“MyCC will look into this matter in the context of the application of Competition Act 2010,” said a MyCC’s statement to theSun.

According to a letter distributed by MMIP since early this month, the telematics device must be installed by its sole partner – Vehicle Telematics Online Services Sdn Bhd (VTOS), at least two weeks before the renewal date of the motor policy.

theSun understands bus operators would have to bear the cost of the device totaling RM3,400 - consisting of RM2,300 per item, RM200 installation fee (outside Klang Valley) and RM900 annual service fee.

MMIP, as a high risk insurance pool organisation, stated it introduced the safety measure to safeguard the millions of passengers, "by introducing Insurance telematics to identify and monitor every driver in control of its insured vehicles on a 24/7 basis."

“As an incentive for this introduction of telematics insurance, MMIP will provide a 10% discount on the premium loading imposed for all motor insurance policies,” said the letter.

Currently, there are 4,718 express buses; school buses (16,356), stage buses (6,931), chartered bus (702), workers' buses (13,081) and tour buses (5,653) in the country, with most bus operators opting for MMIP third-party insurance scheme.

Telematics is the wireless telecommunication technologies to transmit data in real-time to track driver’s behaviour and performance, including travelling speed and other useful information to promote safe driving. It is normally targeted for risky groups such as young drivers and commercial fleets.

Thailand’s Bangkok Insurance will also adopt the telematics concept in April this year. It has been a common practice by insurance industry in the US, Italy, United Kingdom and Japan, to place on-board diagnostics device that tracks drivers’ performance.

Bus operators angry over 'black box' policy by insurance industry

Bus operators angry over 'black box' policy by insurance industry

Posted on 28 January 2016 - 08:04pm

KUALA LUMPUR: Bus operators in the country are up in arms over a compulsory "black box" in a vehicle policy imposed by the insurance industry for annual insurance renewal coverage beginning Feb 1.

The new policy by the Malaysian Motor Insurance Pool (MMIP) requires bus operators to take up the telematics insurance product with the aim to precisely monitor, collect and transmit data of the drivers in real time, to be used to output a measurable risk profile score.

According to a notice distributed by MMIP since early this month, the black box (telematics product), must be installed by its Sentul-based partner – Vehicle Telematics Online Services Sdn Bhd (VTOS), prior to one month road tax renewal.

It is learned that bus operators would have to bear the cost of the device totaling RM3,400, which consist of RM2,300 per item, RM200 installation fee (outside of Klang Valley) and a RM900 annual fee.

Currently, there are 4,718 express buses, school buses (16,356), stage buses (6,931), chartered bus (702), workers buses (13,081) and tour buses (5,653), with majority of the bus operators opting for MMIP third-party insurance schemes.

MMIP as a high risk insurance pool organisation stated that it introduced the safety measure to safeguard the millions of passengers, "by introducing Insurance Telematics to identify and monitor every driver in control of its insured vehicles on a 24/7 basis."

"In the first stage, bus operators which have an overall loss ratio of 10% or more will need to take up Insurance Telematics. This initiative is opened to all Bus Operators," said the notice.

Pan Malaysian Bus Operators Association (PMBOA) president Datuk Ashfar Ali said the sudden introduction by MMIP to take effect from next week would cause a massive burden for bus companies.

"This is an unfair policy by MMIP. We were never consulted and this is set up is under Bank Negara Malaysia," he told theSun.

With majority of bus operators in the country are under MMIP's insurance coverage, Ashfar has expressed regret that the "black box" measure is being implemented in haste.

“Express bus operators already have to abide by the GPS installation as instructed by Land Public Transport Commission (SPAD) to monitor the vehicle’s movement and now we have to install this telematics device. This is totally unnecessary,” he added.

Described by MMIP as a key initiative to address the high incidence of accidents involving buses, the insurance provider explained the difference between GPS systems and Insurance Telematics.

“Insurance telematics is a product to measure the driving nature of the driver. As it is a specialised system with its own positioning system, legacy tracking systems cannot be co-opted for this purpose as they are not set up to precisely measure many of the parameters for driving nature computation,” said the MMIP notice.

Malaysian School Bus Association Alliance (GPBSM) president Mohd Rofiq Mohd Yusof described the latest move by MMIP as totally inappropriate.

"We disagree with this policy. This is a ploy to take advantage to market a new product and we are being the guinea pig and victims by being forced to purchase this Telematics device," he said