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Strike Force News: No Fault Liability Scheme PDF Print E-mail
Contributed by Wee Thiam Seng   
Monday, 03 December 2007 06:59am

Strike Force News: No Fault Liability SchemeThe Bar Council’s Strike Force set up to partake in the discussions with Attorney General’s (AG) Chambers on the proposed scheme of No Fault Liability (NFL) Scheme, to substitute the current fault based liability scheme in Motor Vehicle Accident cases, continues to dialogue with the AG’s office.

Last November 12, the AG’s Chambers organised a Forum inviting the relevant parties to take part in discussing the viability of the NFL scheme in Malaysia. The speakers at the Forum were: Prof Mehrun Siraj; Darshan Singh – FOMCA; Lim Chia Fook – PIAM; Mohd Ibrahim – Bank Negara; Jagjit Singh – member of the Bar, invited by AG to speak and Santhana Dass – member of the Bar Council Strike Force.

Santhana Dass put forward views compiled by the Strike Force, at the ongoing State Bar Forums and recently presented Bar Council Memorandum of NFL. Among the cogent points raised were, inter alia :-

a. Issue of Insurance Premium – the Bar Council registered its concerns that the NFL scheme will inadvertently lead to the increase of Premiums for Insurance of Vehicle Users.

b. Costs– the NFL scheme if implemented, should be implemented by the Government similar to the New Zealand’s model. Can the government cope with the additional cost?

c. The current system only needs tweaking and need not be replaced.

Interestingly, Bank Negara’s representative raised the issue of cost and pointed out that huge funds were needed to carry out and maintain this NFL scheme.

FOMCA’s representative voiced support for the NFL and among reasons cited included lawyers' tendency to impose excessive fees. They hoped the NFL can alleviate this problem.

There were also views raised at the Forum that Malaysia not being a welfare state (unlike New Zealand), and not fully developed yet, may not be ready yet to embrace the NFL scheme.

On December 5 to 6, Bank Negara has invited the Bar Council representative to attend another Forum on this issue. Speakers from Thailand and Japan have been invited to share their experiences on the NFL. In both Countries, a narrow version of NFL is implemented.

The Strike Force, which meets frequently to plan and strategise the Bar Council’s position and stand on NFL; have started to make studies of the Thai and Japanese models and will be present at the said Bank Negara Forum, come this December 5.

Efforts to persuade the relevant parties to retain the current system are in full swing and the Strike Force remains optimistic on this issue.

Watch out for more updates about that Forum on the Malaysian Bar website

Richard Wee Thiam Seng
Member
Bar Council Strike Force on NFL

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