High risk vehicles will be pay less insurance fees this year, the Independent Consumer and Competition Commission (ICCC) has announced.
In a statement released by the ICCC, it stated that as a result, the premiums for high risk vehicles will slightly fall in 2016 compared to low risk vehicles.
ICCC Chief Executive Officer, Paulus Ain said premiums are set based on the average accident frequency, average claim size, average expense, risk reinsurance premiums, inflation, superimposed inflation and profit margin for MVIL.
Ain added that based on the MVIL’s recent claims experience, there was a decline in the parameters for determining premiums, except for average expenses.
He said the overall premiums will fall by 3% in 2016 however, the decreases in premiums for high risk vehicles will be offset by increases in low risk vehicles to maintain the Maximum Average Net Premiums for 2016 approved by ICCC.
The premiums for the following high risk vehicle classes will fall includes; utility-private use (0.03%), extra large car high risk (2.5%), utility exceeding 1.25 tonne (3.2%), and PMV Bus (5%).
Ain said that the reductions will benefit many Consumers as these are the main vehicle classes that are owned and operated by individuals.
He also commended MVIL and attributed the premium reductions to the increased awareness by MVIL to clamp down on false claims.