Many older cars without road tax

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Many older cars without road tax

Postby admin » Wed Sep 16, 2009 1:55 am

KUALA LUMPUR: Thousands of cars are plying the roads without road tax because their owners are unable to get insurance coverage, said the Federation of Malaysian Consumers Associations (Fomca).

Its secretary-general, Mu-hammad Sha'aini Abdullah, said these were owners of cars of more than 10 years old which were considered "ris-ky" and insurance companies were reluctant to provide cover for them.

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

Director-general of the Ro-ad Transport Department Da-tuk Solah Mat Hassan said the department had received 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 motorists to get at least a third-party insurance coverage before the department could renew the road tax.

General Insurance Association of Malaysia (PIAM) executive director C.F. Lim said: "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 33 general insurance companies in the country.

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