How is TSR calculated?

The premium calculation for TSR (Third-Party Liability Insurance) mainly uses two formulas: "Premium = Fixed Premium + Insured Amount × Rate" or "Premium = Base Premium × Rate Adjustment Coefficient". In the first formula, the fixed premium and rate are set by the insurance company based on vehicle type, usage, and insured amount range. For example, when a family car chooses an insured amount of 300,000 Malaysian Ringgit, if the fixed premium is 300 Malaysian Ringgit and the rate is 0.4%, the premium will be 1,500 Malaysian Ringgit. The second formula is more comprehensive: the base premium is determined according to the insured amount tier (e.g., 50,000 to 1,000,000 Malaysian Ringgit) and vehicle type (e.g., family car or commercial vehicle), while the rate adjustment coefficient is affected by factors such as driving record (e.g., no-accident discounts), vehicle usage nature (higher coefficient for commercial vehicles), and regional risks (e.g., traffic-congested areas). For instance, a good driving record may reduce the coefficient to 0.8, thereby lowering the premium. In addition, the deductible rate adjusts the actual compensation amount based on the accident liability ratio (20% for full liability, 15% for primary liability, etc.), and this out-of-pocket amount can be waived if an additional non-deductible insurance is purchased. It is recommended that car owners choose the insured amount according to their own needs and pay attention to the rate adjustment policies provided by insurance companies to optimize insurance costs.