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INSURANCE SERVICES MALAYSIA
INDUSTRY
INSIGHT
Industry Insight Issue 3 : April 2013
Private Car Theft
Private Car Theft
Motor Theft Claims contribute significantly to the losses in the insurance industry. Upon analysing 4 years data from
2008 – 2011, the average Incurred Claims (RM) by nature of loss is as follows:-




Own Damage (OD) : 61%
Theft : 12%
Third Party Bodily Injury (TPBI) : 17%
Third Party Property Damage (TPPD) : 6%
Meanwhile, a close observation on the Severity of Incurred Claims (RM) revealed that Theft Severity is RM 43,329
per claim which is 1.56 times higher than TPBI, 16.85 times higher than TPPD and 7.50 times higher than OD.
Formulae:* Theft Severity: Theft Incurred Amount (RM) / No of Theft Claims Incurred
* Theft Claims Frequency: (No of Theft Claims Incurred / No of Theft Earned
Exposure)*10,000
Nevertheless, this analysis will focus on Theft Severity and Theft Frequency (per 10,000 cars) by Region, Make &
Model, and Age of Vehicle.
Industry Insights : Issue 3 | pg. 2
REGION
 Regionally, for the duration from 2008 to 2011, the Central region reported a high theft frequency and severity,
24/10,000 and RM 49,000 respectively in comparison to the industry’s average; 17/10,000 and RM 43,000.

The least prone area for theft was the East, North and East Malaysia region. However, the average theft
severity for the mentioned regions showed a diverse effect as it increased year on year basis.
·
North: Kedah, Penang, Perak & Perlis
·
East: Kelantan, Pahang & Terengganu
·
Central: Negeri Sembilan, Selangor, WP.Kuala
Lumpur & WP.Putrajaya
·
East MY: Sabah, Sarawak & WP.Labuan
·
South: Johor & Melaka
MAKE / MODEL

Based on the Top 10 makes in 2011 (refer to Table 2.0) Perodua, Mercedes-Benz, Ford and Hyundai are the least
targeted vehicle makes for theft. Whilst, Mitsubishi, Honda, Toyota and Proton are the top 4 makes with higher
theft frequency (per 10,000 cars) 33, 27, 23 and 16 respectively.
Industry Insights : Issue 3 | pg. 3
Drilling down into the models of the above mentioned top 4 makes revealed that the following models have the
highest frequency (per 10,000 cars):-
·
·
·
Mitsubishi Evolution : 258
Toyota Rush : 250
Toyota Fortuner : 214
·
·
·
Proton Perdana : 130
Toyota Hilux Double Cab : 120
Honda Integra : 62
Industry Insights : Issue 3 | pg. 4
AGE OF VEHICLE
Source: ISM Knowledge Management Services – Motor Module

The industry theft frequency is high especially when the vehicle is less than 6 years old and it continues to
decline as the vehicle becomes older.

However, this trend only continues till vehicles age from 7 to 15 years. Thereafter, gradual increase is noted for
vehicles more than 16 years old. These older vehicles are believed to be stolen for cannibalisation of spare
parts.
-This article was contributed by Sofian of ISM (sofian@ism.net.my)Visit www.ism.net.my to view our Industry Insight.
Industry Insights : Issue 3 | pg. 5