Brand Feature #5 – January 2018 (www.optiautodetail.com)
A comprehensive motor insurance policy typically covers the repair cost of an accident. However, what most policyholders do not know is that for older cars (5 years and above), in the event of an accident and if new original spare parts are used in the car repairs, the car is deemed to be better than before. As such, policyholders will be expected to contribute to a part of a costs of the new original spare parts used. This is known as a “betterment” charge and the scale of contribution is stated in terms and conditions of the motor policy.
But you may ask why “betterment” charges? This is because Insurance is designed to take you back to the original condition before your mishap. Having a new part means your car is in a better condition now than it originally was. Therefore, “betterment” charges ensure policyholders do not end up profiting from the loss. It is a concept practice by all insurance companies.
MSIG now offers a Motor Add-On that waives the betterment charges for an additional premium. This will reduce the financial impact to a policyholder who owns an older car that uses new
Click here to learn more about MSIG’s Waiver of Betterment Cost * Motor Add-On:
Product leaflet: http://www.msig.com.my/MSIG%20Waiver%20of%20Betterment%20Cost_CART%20leaflet.pdf
*For Comprehensive Private Car only. Terms and conditions apply.