ID :
80097
Tue, 09/15/2009 - 20:49
Auther :

HUNDREDS OF CARS WITHOUT VALID ROAD TAX ON MALAYSIAN ROADS




KUALA LUMPUR, Sept 15 (Bernama) —- Thousands of cars are plying the roads
without valid road tax because their owners are unable to get insurance
coverage, according to the Federation of Malaysian Consumers Associations
(Fomca).

Its secretary-general, Muhammad Shaaini Abdullah, told Bernama that these
were owners of cars of more than 10 years old which were considered "risky"
and insurance companies were reluctant to provide cover for them.

He said that should such vehicles meet with an accident it would cause
tremendous problems for the authorities, owners and victims because no claim
could be made as there was no insurance coverage.

Director-General of the Road Transport Department Solah Mat Hassan
confirmed that the department had received several complaints from motorists
about not being able to obtain insurance coverage for such vehicles although
they were roadworthy.

Under the road transport act, he, said, it was mandatory for the motorist
to get at least a third party insurance coverage before the department could
renew the road tax.

"While we sympathise with the motorists, we cannot do anything but enforce
the law if they are found to be without valid road tax," he added.

He called on the insurance companies to find an amicable solution to the
problem.

In response to Bernama's query via e-mail, General Insurance Association of
Malaysia (PIAM) executive director C.F. Lim said:

"Currently the motor insurance market is experiencing high loss. As such,
many insurers have either declined or are scaling back on underwriting risks,
especially third party insurance and insurance for older vehicles."

However, he said, motorists who found it difficult to get the required
insurance could obtain it from the Malaysian Motor Insurance Pool (MMIP) jointly
operated by all the 33 general insurance companies in the country.

Lim said the MMIP provided insurance for vehicles which were considered high
risk and those unable to obtain from the normal market.

"In other words, the MMIP is the insurer of last resort."

The MMIP had formed a strategic partnership with Pos Malaysia since
July, and motorists could obtain the insurance from the 684 Pos Malaysia
branches in the country.

Since Malaysian Post was also an agent for the Road Transport Department,
motorists could also renew their road tax at these outlets which were
convenient one-stop centres, he added.

However, Muhammad said, many motorists were reluctant to use the services of
the MMIP because the premium was very high.

He called on Central Bank of Malaysia, as the agency in charge of insurance,
to immediately review the rates and make them affordable.

-- BERNAMA



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