Consumers Association of Penang

Giving voice to the little people...since 1970

NO FAULT LIABILITY: LET THE PEOPLE DECIDE

The Consumers’ Association of Penang (CAP) strongly believes that consumers will benefit from the NFL just as employees benefit from the Social Security Organisation (SOCSO) which operates on the principle of NFL. If SOCSO has been overwhelming successful for more than four decades why can’t NFL.

CAP disagrees with former Bar Council chairman Kuthubul Zaman Bukhari’s statement that “any move to introduce the No Fault Liability (NFL) scheme will result in motorists having to pay a higher insurance premium”. His assertion is baseless.

BNM MADE A U-TURN ON NO FAULT LIABILITY SCHEME

Do consumers have to pay more for their motor insurance than what they are paying now when detariffication of motor insurance starts on 1 July?  At least this is what the Consumers’ Association of Penang (CAP) understands because the General Insurance Association of Malaysia (PIAM)’s reply to its FAQ question “What % increase can I expect (CAP’s emphasis) on my motor premium” is:

“It will differ from insurer to insurer. Consumers should shop around for the motor insurance that meets their needs.”

A report quoting the Actuarial Society of Malaysia also concurred that “upon de-tariffing of the tariff and Motor businesses, the premium rates are expected to go up for Motor businesses which would result in an improvement of the motor loss ratio from the current loss making or breakeven position.”

Bank Negara's basic motor cover framework: What's wrong and what's the alternative

Bank Negara Malaysia (BNM) invited public comments on its proposed Third Party Bodily Injury and Death Benefits (TPBID) which is going to replace the third-party motor insurance. Below we reproduce the comments submitted to BNM by the Consumers Association of Penang (CAP).
 

Clear the confusion over motor policy

The Ministry of Finance and Bank Negara Malaysia owes the public an explanation over conflicting reports about the proposed Third Party Bodily Injury and Death Benefits (TPBID) which is going to replace the third-party motor insurance.

On one hand Bank Negara (which comes under the Ministry of Finance) has said that the TPBID policy is not finalized and has invited the public to give its feedback on it. CAP too submitted its comments on 14th May 2010.