According to The Sun Daily, the proposal by the Malaysian Motor Insurance Pool (MMIP) to have busses equipped with a telematics device has been put off. The system will remain optional to bus operators for the moment, but it is no longer a compulsory requirement by MMIP’s terms.
The decision was reached following a meeting between the insurance provider, the Land Transport Commission (SPAD), Bank Negara and several bus associations in the country. Bus operators themselves have long refuted the device, citing overwhelming costs amounting to RM3,400 in total — this can be broken down to RM2,300 for the telematic device itself, RM200 for its installation and RM900 per annum service fee.
Previously, MMIP stated that the telematics device was developed to “safeguard the millions of passengers by introducing insurance telematics.” The system is capable of tracking a bus operator’s performance and behaviour, as well as the vehicle’s travelling speed and other relevant information.
This would allow MMIP, or any other authority with access, to very closely monitor bus operators and their vehicles. It was also stated that the insurance provider is especially keen on monitoring high-risk groups such as young drivers and commercial fleets.
Bus operators may breathe a sigh of relief for now, but the commission is considering other solutions for the future. “We already have GPS as the tracking mechanism for express and stage buses connected to SPAD’s Performance Monitoring Hub,” said Mohd Azharuddin Mat Sah, SPAD’s CEO.
“Now with the telematics device coming into the picture, we will discuss further with stakeholders to finalise one tracking device which suits all parties,” he continued. The SPAD chief also added that the government would have the final say on which systems would be enforced.
While the telematics device remains optional, bus operators who voluntarily install the MMIP system will be entitled to special discounts with the insurance provider. “Bus operators will be given the option either to pay multiple claims loading or to install insurance telematics voluntarily where they can enjoy a substantial subsidy from MMIP, such as a 10% discount on basic premium loading and waiver on premium loading due to multiple claims,” said MMIP CEO, Manogaran Sinnathamby.
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So after all the horrible accidents they still say it’s optional….right
See who owns the bus companies. They said too expensive, so the Government kowtow to them. Infact, most of the owners are the Government party members!
How in the world is RM3,400 for the first year and RM900 recurring cost ANNUALLY an overwhelming cost for the bus operators when it comes to safety and assurance for their passengers. It is quite obvious that with such a device, the operators cannot cut even more cost by servicing less and hiring incompetents as drivers.
seriously, we can throw away JPJ and transport minister since SPAD is playing the redundant role…all those transport minister should thrown away and safe the $$ to pay them..