What a Privilege it is to be a Honda Car Owner! All About Honda HIP You Should Know About

Did you know that in 2017, Honda Malaysia achieved a record-breaking increase in sales of 19% with a total of 109,511 units sold? This made it the highest in the history of Honda Malaysia since its establishment in 2003.

Honda is no doubt one of the most popular car makers in the country, known not only for its innovative features and looks that appeal to the public but also it is relatively low cost as a reliable personal vehicle.

But that is not all. There are other advantages that Honda car owners get to enjoy that make owning a Honda car a wiser decision, especially to the cost-conscious consumer.

What advantages? Well we’re glad you asked. If you are a Honda car owner yourself and have not heard of the Honda Insurance Package, you don’t know what you’re missing out on.

Honda Insurance Package – a privilege to the Honda car owner

Honda Insurance Package or HIP is comprehensive car insurance coverage offered by Honda Malaysia exclusively to Honda car owners that give more than just protection to your cars.

However, sad as it may be, many among the Honda car owners themselves who are not aware of this unique offering that is only made available to them when they renew their yearly insurance policy through an authorized Honda dealer.

Below are the advantages that you enjoy from HIP

1. 100% genuine parts

Restoration and repairs are taken care of by a panel of workshops endorsed by Honda. These panel workshops comply with Honda’s quality standards where only genuine parts are used. HIP ensures that all these parts come with a 6 month warranty or 10,000km service warranty.

2. Agreed value up to 10 years

Here’s another privilege you’d not want to let go, especially because not all insurers in Malaysia offer comprehensive covers based on agreed value. Under HIP, not only it does so, but it also provides it for the first 10 years, with the sum insured that is based on purchase price for the first year while subsequent years’ sum insured that is based on the recommended ISM Valuation Price.

To understand the advantages of insuring your car based on agreed value, check out this article (in Bahasa Malaysia).

3. No betterment cost

Betterment occurs when in the course of repairing an accident-damaged vehicle, an old part is replaced with a new franchise part. In line with the principle of indemnity, you will have to bear the difference in costs as you are in a better position after the accident with the new franchise part (Insuranceinfo). The industry rate for betterment is as follows:

However, under HIP, you bear NO BETTERMENT COST for up to 10 years!

4. No excess

Unlike other insurance policies, HIP guarantees that no access is payable (other than compulsory access) in the event of a claim. This means that HIP will pay 100% of the cost for repair while others may impose a certain amount of excess based on the age and model of the vehicle, as well as policyholder’s years of driving experience and claim records.

5. Speedy claim process

HIP guarantees speedy claim approval for value under RM20,000 for Honda vehicles repaired at any Honda Authorized Body and Paint Centre. These dealers are able to provide assistance and support in following up with insurance company and advise on claims procedure.

Anymore? Of course there are!

• The Honda Insurance Package is underwritten by a trusted panel of insurers comprising of MSIG, Tokio Marine Insurance, Berjaya Sompo, Liberty Insurance, AIG Malaysia, Allianz General Insurance, Etiqa and Zurich Takaful.

• 100% reimbursement. HIP covers 100% of your sum insured for the first 10 years in the event of total loss or theft. This is unlike other comprehensive policies that provide a cover of only up to the market value of the vehicle at the time of loss.

• 24 hours emergency assistance. HIP offers emergency towing service to the nearest Honda Panel Insurers
  Workshop up to 450km (round trip by the tow truck) for free. Roadside Repair Service that offer free labour charges up to RM200.00 per event (exclusive of spare parts) is also available for jump-start or battery replacement, tyre-changing and fuel refill services.

How to start enjoying these privileges under HIP?

1. Visit any Honda Authorized Dealership that are HIP panels or call 1800-18-1177.
2. Request for a quotation for insurance or takaful for your vehicle. Don’t forget to also ask for any additional coverage that you may want.
3. Choose the preferred insurer and get insured under HIP!

Useful terms:

Agreed value vs market value

Your car can be insured based on Agreed Value or Market Value. When you insure your car with market value, the premium is calculated based on the current market value of the vehicle at the time of policy renewal. The pay-out amount should there be a claim, will base on the market value at the time of the claim. Considering that some time may have passed, the vehicle would have depreciated in value. Should you have to claim due to a total loss or theft, the pay-out will certainly be less.

Agreed value is when the sum insured is based on the amount agreed by the insurer. This is usually based on the car model and year of make. When you insure your car with agreed value, you get 100% pay-out should there be a total loss or theft.

Excess

Also known as deductible, excess is a fixed amount that you have to fork out if you make a claim. There are two types of excess:

i) Compulsory excess

– a fixed RM 400 excess is applicable in any of the 4 conditions below:

When during an accident, your car was driven by a person:
a) not named in your motor policy
b) who is under 21-years old
c) who is holding an L license
d) who holds a full driving license of less than 2 years

ii) Other excess 

– Amount imposed by the insurer based on certain considerations, such as age of vehicle and driver’s years of driving experience. (ibanding.my)

Want to know more about HIP? Follow this link here.

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