MOT To Examine Implications Of Compulsory Car Insurance For Private Car Passengers -- Loke

KUALA LUMPUR, Nov 28 (Bernama) – The Ministry of Transport (MOT) will examine the implications of making car insurance compulsory for private car passengers, as it could among others, significantly impact insurance costs for vehicle owners.

Transport Minister Anthony Loke Siew Fook said a comprehensive study would also be necessary to evaluate its impact on existing laws.

“We will ask the Land Division of the Ministry of Transport to look further into it and it will certainly have a big impact on the cost of insurance, so this needs to be looked into before any policy decisions are made.

"I am convinced that if we do something like that, they have to make sure there is a balance and in this matter, what is important is the decision of the Federal Court, we have to see if it has an obligation to amend our act," he told reporters when met at at the Asian Maritime Law and Business Conference, which kicked off today.

He was asked on the recent case, where Federal Court ruled that passengers travelling in vehicles for work purposes can seek compensation from their vehicle insurance company for injuries sustained if involved in an accident.

According to a news portal, the court decision has renewed discussions on whether Malaysia should mandate insurance coverage for passengers in private vehicles to ensure compensation in the event of accidents.

-- BERNAMA