KUALA LUMPUR: The transport ministry will study the need to make insurance coverage compulsory for passengers in cars, says its minister, Loke Siew Fook.
This follows a landmark Federal Court ruling that passengers travelling in a vehicle for work can be compensated by the vehicle’s insurers for injuries suffered in an accident.
Loke said he will order his ministry’s land division to first look into the apex court’s decision before deciding on such a policy.
“We have to look into it thoroughly as it has a huge impact in terms of insurance costs and so on.
“We need to see if the Federal Court’s decision will have an implication on the amendment of our (Road Transport) Act,” he told reporters on the sidelines of the Asian Maritime Law and Business Conference 2024 here today.
On Nov 14, the Federal Court said Section 91(1)(b)(bb) of the Road Transport Act protected third party accident victims who travel in an insured motor vehicle for work engagements.
The apex court had allowed an appeal by Chen Boon Kwee from a Court of Appeal ruling favouring Berjaya Sompo Insurance Berhad.
Chen, a passenger in a car owned by his wife, Tan Saw Kheng, and driven by another individual, Masri Tamin, sustained injuries in a road accident in 2015.
He obtained judgment against Masri and Tan in the Batu Pahat sessions court five years ago and sought to enforce it on Berjaya Sompo, the vehicle’s insurer under a third-party risk motor insurance policy.
Berjaya Sompo sought to disclaim liability for the judgment on grounds that the policy did not cover members of the vehicle owner’s household.
Separately, Loke said a special committee was established last month to review outdated maritime laws, particularly laws governing ports and the Merchant Shipping Ordinance 1952.
“We need to improve our maritime laws from time to time so they are aligned with current demands and able to support the huge maritime growth,” he said, adding that the laws also need to be uniform between Peninsular Malaysia and East Malaysia.
The committee has been given 12 months to carry out the work, and Loke hoped to table the relevant bills in Parliament next year.
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