The Financial Services Authority (FSA) has issued a circular to the CEOs and general managers of insurance and takaful companies pressing home the message that they cannot refuse to insure electric vehicles (EVs) or renew the motor policy as long as the vehicle satisfies the stipulations stated in the Traffic Law.
In a statement, the FSA urged insurers to comply with the motor vehicle insurance law.
The FSA order was issued following complaints about the refusal of some insurance companies to provide insurance coverage for EVs. Refusal is a breach of the motor vehicles insurance law.
FSA emphasised that compulsory motor insurance covers all vehicles, including EVs, with no exclusion, and urged insurance companies to address technical issues such as the availability of spare parts through underwriting and pricing policies without prejudice to the beneficiary’s right to obtain insurance coverage.