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Third Party Insurance here to stay

Husna Yusop

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.

Updated: 05:13PM Tue, 24 Nov 2009
Source: http://www.sun2surf.com/article.cfm?id=40593