PIAM EXPRESSES PROFOUND DISAPPOINTMENT AT MyCC’S DECISION

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PIAM and its members are profoundly disappointed by the Final Decision issued by MyCC on 14 September 2020 against PIAM and 22 general insurers.

MyCC has found that PIAM and the insurers had infringed the Competition Act 2010 in relation to an arrangement between PIAM and the Federation of Automobile Workshop Owners’ Association of Malaysia (FAWOAM) on the minimum hourly labour rates and spare part prices for six commonly used vehicles namely Proton, Perodua, Naza, Nissan, Toyota and Honda.

PIAM and its members have always placed the motoring public and policyholders at the forefront. To safeguard the interests of consumers PIAM working under the direction of Bank Negara Malaysia (BNM) agreed with FAWOAM to resolve the prolonged dispute between insurers and repairers over spare parts trade discounts and labour rates. BNM’s directive was in the interests of the motoring public and addressed consumers’ complaints on the motor repair process. It also supports ongoing reforms in the motor insurance industry to promote greater competition, innovation and affordability in the long term.

PIAM has tendered clear and robust evidence to the Commission that the arrangement with FAWOAM brings benefits to consumers, in terms of faster turnaround time for repairs, less complaints and growth in the numbers of repairers (therefore enhancing availability of repairers for accident repairs). The independent economist’s report by RBB Economics UK was presented by their economist in person before the Commission on two occasions. The RBB report presented clear and robust tangible evidence of how consumers have benefited from this agreement.

PIAM and the insurers had participated in good faith in the entire process following the Proposed Decision, on the basis that their evidence and arguments would be thoroughly evaluated and that the Final Decision would have taken into consideration and properly construed all of the facts, arguments, and evidence that had been presented to MyCC.

After three years, PIAM is deeply disappointed that MyCC has released a decision that does not fully take into consideration the voluminous evidence tendered and legal arguments submitted. MyCC’s decision rejects legal and regulatory certainty and is a decision against consumers and the motoring public of Malaysia. PIAM will lodge a strong appeal against the decision.

PIAM would like to inform the motoring public that our member insurers stand ready to serve all policyholders through their hotlines and customer service channels. The industry is committed to continuously improve and enhance the customer journey for all our policyholders.