Motor Insurance
INTRODUCTION
GROWTH OF MOTOR INSURANCE Vehicle first appeared on the roads in United Kingdom (UK) during 1880’s, but the first motor insurance is issued during 1890’s. Therefore it is almost 10 years time people use a motor vehicle as a mode of transportation without insurance coverage. Therefore, through their (insurer) experiences on other classes of insurance such as fire, theft & liability, they introduce the motor insurance towards the use of transportation. Then they emphasis it (motor insurance) on the subject matter which is the vehicle. Hence, they did it upon the drivers. At that time, insurer gave more weight or more concern about the drivers. They (insurer) will look into their (insured) experience especially young drivers.
The early years of twentieth century, the formation of insurance company (composite office) is more emphasis upon motor insurance. Why? This situation arises due to increase in number of the vehicles use on the public roads. By their (insured) experience on fire, theft and liability insurance, they (motorist) placed most of the business with the composite office. Most of these composite offices are belongs to Accident Office Association (AOA). By the time being, AOA realized that their joint and several interests would best be served if they agree to adopt a set of guidelines and basic rates of motor insurance. Composite offices which subscribing with tariff agreement will pooled their statistics and set the minimum rates for the various classes of motor insurance.
During the Second World War, the competition in motor insurance subsided because there are fewer vehicles in private use. This situation directly gives bad impact to motor insurance business. After a Second World War, people start to have their own vehicle for private use. This situation brings back the motor insurance business. The composite offices at that time which can best be defined as ‘mushroom’ aims for fast growth by offering lower premium and high rates of
GROWTH OF MOTOR INSURANCE Vehicle first appeared on the roads in United Kingdom (UK) during 1880’s, but the first motor insurance is issued during 1890’s. Therefore it is almost 10 years time people use a motor vehicle as a mode of transportation without insurance coverage. Therefore, through their (insurer) experiences on other classes of insurance such as fire, theft & liability, they introduce the motor insurance towards the use of transportation. Then they emphasis it (motor insurance) on the subject matter which is the vehicle. Hence, they did it upon the drivers. At that time, insurer gave more weight or more concern about the drivers. They (insurer) will look into their (insured) experience especially young drivers.
The early years of twentieth century, the formation of insurance company (composite office) is more emphasis upon motor insurance. Why? This situation arises due to increase in number of the vehicles use on the public roads. By their (insured) experience on fire, theft and liability insurance, they (motorist) placed most of the business with the composite office. Most of these composite offices are belongs to Accident Office Association (AOA). By the time being, AOA realized that their joint and several interests would best be served if they agree to adopt a set of guidelines and basic rates of motor insurance. Composite offices which subscribing with tariff agreement will pooled their statistics and set the minimum rates for the various classes of motor insurance.
During the Second World War, the competition in motor insurance subsided because there are fewer vehicles in private use. This situation directly gives bad impact to motor insurance business. After a Second World War, people start to have their own vehicle for private use. This situation brings back the motor insurance business. The composite offices at that time which can best be defined as ‘mushroom’ aims for fast growth by offering lower premium and high rates of
References: Obey Speed Limit. November 19, 2012. Retrieved at 24 November 2012 from http://thestar.com.my/news/stor