RHB Insurance Berhad (“RHB Insurance”) recently launched the Financial Guarantee Asset Protection (“FGAP”) insurance policy add-on, offering peace of mind for new and used car owners.
FGAP insurance policy add-on to cover the difference between outstanding vehicle financing and the settlement amount.
The FGAP policy add-on provides policyholders coverage on the difference between outstanding vehicle financing and the settlement amount in situations where the vehicles are damaged beyond economic repair or stolen and not recovered. This amount is subject to the maximum limit as specified in each policy.
“Most car buyers, especially new owners, may not be aware of the need to pay the difference between outstanding vehicle financing and settlement amount in the event of total loss or theft of the vehicle.
The additional cost to borrowers would compound their burden especially during these difficult times. The FGAP policy add-on will provide customers with a hassle-free and affordable option to protect both new and used car purchases. Premium starts from as low as RM50 per year,” said Kong Shu Yin, Managing Director of RHB Insurance Berhad.
RHB Insurance will be entering into an exclusive partnership with Carsome, the used car portal that competes directly with MUV, MyTukar and Mudah.my for the used car eco-system in Malaysia.
Until recently, the used car market was rife with shady dealers doing their business ‘under a tree’ and using a container office. Frequent complaints about under table money for loan approvals and ‘questionable’ used car values had been practiced for years giving these dealers abnormally high profit margins.
The arrival of used car online portals has reduced their ability to scam car owners who need the best price to sell their cars and also reduce the number of accident or damaged vehicles from being sold to unsuspecting buyers at a high price.
This new vehicle insurance program by both RHB and Carsome is to enhance the protection to the used car customers.
“Carsome is building a holistic, end-to-end used car ecosystem and insurance forms an integral part of it. RHB’s FGAP policy add-on is a great complement to our services, which are geared towards providing a seamless car ownership experience as well as convenience and peace of mind to consumers when it comes to mobility solutions,” said Eric Cheng, Co-founder and Group CEO of Carsome.
If you need more information relating to the Financial Guarantee Asset Protection insurance policy add-on, customers may contact RHB Insurance Customer Service at the number 1300-220-007 or visit the website https://www.rhbgroup.com/insurance/personal-insurance/motor/index.html or take a drive and visit the nearest RHB Bank branch.
