KUALA LUMPUR (Nov 24, 2009) : The government has no intention of abolishing third party insurance as it
is a compulsory requirement under the Road Transportation Act 1987, Finance Minister Datuk Seri
Najib Abdul Razak told the Dewan Rakyat today.
The government also does not plan to cease insurance protection
for cars that are more than 10 years old and those valued at RM10,000 and below.
In a written reply to a question from Siti Zailah Mohd Yusoff
(PAS-Rantau Panjang), he said the difficulties faced by the public to get third party insurance was
due to insurers being unwilling to pay out large claims that were higher than the value of premium
imposed on such cars.
"Although insurers are being more careful in offering individual
third party motor insurance, the public can still get third party coverage from the Malaysian Motor
Insurance Pool (MMIP).
"And in realising this difficulty, a new insurance scheme has been
announced under the 2010 Budget. The scheme would also have a quick and easy insurance claims
process," he said.
Najib said Bank Negara Malaysia together with Finance and
Transport Ministries was now in the process of studying the absorption of a suitable motor
insurance scheme mechanism.
"This is apart from the holistic study being conducted to improve
access, efficiency and strength of the motor insurance sector," he said, adding details of the
mechanism will be announced later.