Agreed Value
Agreed Value News & Updates Penang, Malaysia, Butterworth Package | CHIN HOCK AGENCY

Agreed Value

Agreed Value

This is the most important terms in car insurance policy.

This means the value of the car is agreed between yourself and the company at the begining of the contract and each renewal.

We highly recommend you to buy Agreed Value policy for Comprehensive Coverage to enjoy the 4 major benefits.

Benefit 1: 100% Payout

If your car insured with agreed value RM 20,000

By the time of the car is total loss/ stolen,

The insurance company will compensate you the whole RM 20,000.

But, if your car insured with market value RM 20,000

The insurance only compensate you by referring to the used car market.

If you car only worth for RM15,000 in used car market at the time of accident,

then the maximum amount you would received will be RM 15,000 only.

Benefit 2: No Under-insured Problem

When your car insurance is Agreed Value policy, it avoid under-insured problem.

What is under-insured?

When your car value is RM100,000,

but your car insured with RM80,000 only.

It means your car insurance is
under-insured by 20%.

Thus, Average Clause will be applied.


Total accidental repair cost = RM20,000

Insurance company only resposible for 80% of accidental repair cost.

Then, you have to pay the rest of the 20%..

Which equals to
RM 4,000!

Here's the sample for your references

Total Repair Cost Insurance Company (80%) You (20%)
RM 60,000 RM 48,000 RM 12,000
RM 40,000 RM 32,000 RM 8,000
RM 20,000 RM 16,000 RM 4,000
RM10,000 RM 8,000 RM 2,000

Benefit 3: Preferred by Panel Workshop

If your car is insured with Agreed Value,

Panel workshop no need to argue so much with the insurance company.

because no under-insured problem!

Panel workshop no need argue with the insurance company whether the vehicle is under-insured.

Thus, the claim process will become more easier and effective.


Please leave your enquiry here, we will reply as soon as possible.

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