ACCORDING to the General Insurance Association of Malaysia (PIAM), 15,727 private cars were reported stolen to insurers in 2007 and 2008.

Total claims incurred by insurers for these vehicles amounted to RM673.4 million (S$280 million).

Theft losses for motorcycles are an area of great concern to both insurers and the public because of the sheer number of thefts which are taking place.

In 2007, 35,749 motorcycle theft losses were reported with claims amounting to RM129.8 million.

Last year, these numbers had decreased slightly to 33,349 and RM118.8 million respectively.

In terms of absolute numbers, the following makes of cars had the highest number of thefts in 2008: Proton (3,873), Toyota (1,472) and Perodua (921).

However, the correct comparative measure of the rate of vehicle theft of a particular make or model of car would be the frequency of theft, for example, the number of vehicles stolen as a ratio of the total number of vehicles on the road.

Generally, stolen vehicles will end up in the following circumstances:

- Resold to innocent or "not-so-innocent" buyers

- "Exported" out of the country for resale to foreign buyers

- Cannibalised for spare parts which are then resold in the local spare parts trade.

The insurance industry is working on the possibility of introducing a premium discount scheme for vehicles which are installed with approved electronic immobiliser and tracking systems which are connected to a centralised monitoring centre.

PIAM is also in discussion with other markets on the introduction of a vehicle security standards system.

These standards will enable the insurance industry to insure vehicles based on their security rankings, i.e. an assessment of their resistance to theft.

The standards will also enable the public to use the ranking when purchasing a vehicle and give them an indication of how their insurance premiums may be affected as a result.

In the last six years, the average annual insurance payout by the insurance industry for vehicle thefts was approximately RM550 million per year.

This is a great loss not only in terms of property value but also in terms of the unquantified consequential financial cost and emotional hardship to affected vehicle owners.

The large number of vehicle thefts including thefts with threats of violence are having a negative impact on the public's perception of safety and security in the country.

Furthermore, the spread of criminal activities associated with vehicle thefts such as organised theft syndicates, fencing of stolen property, "chop shops" and negative influence on our youths cannot be ignored.

-The New Straits Times