Motion regarding proposed scheme by Bank Negara Malaysia to cover third party bodily injury and death
(Proposed by Ragunath Kesavan (Chairman, Bar Council), on behalf of the Bar Council, dated 5 March 2010)
Whereas the Malaysian Bar:
| a) | takes note that the Government plans to introduce a new scheme to cover third party bodily injury and death, which it has indicated will be finalised for implementation in the second half of 2010; |
| b) | is concerned that the proposed reforms would alter adversely the landscape of the motor insurance scheme, to the detriment of motor accident victims, their families and dependants; |
| c) | is concerned that the proposed reforms, which will have far–reaching effect, seem to be driven solely by the insurance industry on the basis of profitability, without any consideration being given to public interest or social responsibility; |
| d) | is concerned over the lack of transparency and accountability on the part of Bank Negara Malaysia, evidenced by its failure to reveal the mechanics, funding and operation of the proposed reforms; |
| e) | notes with concern that the working committees that have been established currently comprise solely industry groups, namely insurance companies only, indicating that profitability of the insurers is an overriding factor behind the proposed reforms; |
| f) | is concerned that this major revamp of the existing motor insurance scheme is being proposed without any consultation of the relevant stakeholders, such as the Bar Council and public interest groups, or the public at large; |
| g) | notes that the system of administration of justice has been enhanced to expedite resolution of claims and to address issues of delay; and |
| h) | notes that the quantum for damages for personal injury claims is already severely limited under the Civil Law (Amendment) Act 1984, which, amongst others: |
| | i) | overlooks the socio–economic realities in Malaysia, where there are no old age pensions nor payments to the unemployed, very few persons cease working at the age of 55 and many parents depend on their children to support them in their old age; |
| ii) | does not consider the loss of earnings of a person who is above the age of 55 at the time of his death; and | |
| iii) | limits damages for bereavement, wherein the spouse of a deceased person, or the parents of a deceased minor who never married, are entitled to only RM10,000; and | |
| iv) | is therefore concerned that any additional changes proposed by Bank Negara Malaysia would be to the further detriment of the public. |
It is hereby resolved that:
| 1) | The Malaysian Bar strongly calls on Bank Negara Malaysia to provide full and frank disclosure of the details of the proposed scheme; |
| 2) | In view of the wide social and economic ramifications of the proposed scheme, the Malaysian Bar strongly calls on the Government to immediately engage and consult with all stakeholders and relevant segments of society, and to take their views into consideration before finalising the proposed reforms; and |
| 3) | The function and discretion of the Courts in deciding on the issues of liability or quantum must be maintained. |
The motion was unanimously carried.