Consumers Association of Penang

Giving voice to the little people...since 1970

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.

Consumers deserve a No-Fault Liability Motor Scheme

The Consumers Association of Penang (CAP) welcomes the announcement by Bank Negara Malaysia (BNM) that it will be consulting all relevant stakeholders next month before presenting the proposed new third party bodily injury and death scheme to the government.

In August 2007, the Attorney General’s Chambers issued a Preliminary Issue paper proposing that a No-Fault Liability Scheme (NFL) be introduced.  There were intensive discussions with all interested parties including BNM on the need for the NFL scheme.
 

Motor insurance - let the Govt take over

Many comments have been made about Consumers Association of Penang 's (CAP's) proposal for a no-fault liability scheme in relation to motor vehicle accidents (MVAs), and regarding the proposed scheme by Bank Negara Malaysia (BNM). CAP wishes to set the record straight regarding its stand on the proposed BNM scheme as well as respond to the comments made.

Very little is known about the proposed scheme by BNM, but from various reports in the media, it appears that :