Ministry studying need for private car passenger insurance

KUALA LUMPUR: The Transport Ministry will examine the implications of making car insurance compulsory for private car passengers, as it could, among other things, significantly impact the cost of insurance for vehicle owners, says Anthony Loke.

The Transport Minister said a comprehensive study would be necessary to evaluate its impact on existing laws.

“We will ask the ministry’s land division to look further into this. 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.

“If we do something like that, they have to make sure there is a balance.


“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 at the Asian Maritime Law and Business Conference yesterday, Bernama reported.

Loke was asked about the recent case where the Federal Court ruled that passengers travelling in vehicles for work purposes can seek compensation from their vehicle insurance company for injuries sustained in an accident.

According to news reports, the court decision has renewed discussions on whether Malaysia should mandate insurance coverage for passengers in private vehicles to ensure compensation in the event of accidents.