The transport ministry will examine the implications of making car insurance compulsory for private car passengers, as it could significantly impact insurance costs for vehicle owners, reports Bernama, with transport minister Anthony Loke saying a comprehensive study would be needed to evaluate its impact on existing laws.
“We will ask the Land Division of the transport ministry 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 today at the Asian Maritime Law and Business Conference.
A recent Free Malaysia Today report said that the Federal Court has 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.
Insurance for private car passengers would be covered under an add-on called “Legal Liability to Passengers” (LLP). If you have ever driven/intended to drive to Singapore, you would likely already have this add-on in your insurance policy as it is a requirement to drive your car into the country.
How much does this LLP add-on cost? The calculation of price for this add-on is about 25% of the premium of what your car value’s third party insurance policy would typically cost. We had a quick look at an insurance policy for a 2022 Hyundai Staria Max insured for RM184k and the LLP add-on was priced at RM57.80
You can get a quote for your car insurance using our Paul Tan Car Insurance real time quote platform.
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This minister never cease introducing stupid things, from paperless licence & road tax to fancy license plate to unlimited darkness tint that causing trouble to the people. Important things like child seat takde pulak he make it mandatory.
hell yeah, every cost is going up, but not my salary
Stop adding burden to the rakyat regardless of whatever nonsense reasons.
Why not start with mandatory motorcyclist insurance? We all know why it has never made a mandatory coverage for them…
Yes, yes. Increase price of everything. That’s what the government is good at.
Idk. I feel like i want to give up on life just because of every governments all over the world making stupid decisions that negatively affect us all
I’m already being forced to pay additional premium for all riders coverage on my 3 motorcycles even though I m the only one that ride them as most insurer doesn’t offer single rider option anymore.
And now this shit? Even if it’s made optional, soon insurer will play the same trick from the playbook and consumer will be forced to buy full coverage with passengers add on premium since that will be the only policy offered. Fatter margin, no brainer.
The minister Anthony doesn’t understand the judgement. The federal court said regardless of LLP, the insurer is forced to pay up. So we don’t need to add llp.