KUALA LUMPUR: The Government has no plans to scrap third-party insurance and insurance coverage for old cars valued at RM10,000 and below, Finance Minister Datuk Seri Najib Tun Razak said.
He added that the difficulty faced by the public to get third-party insurance was because insurers were unwilling to pay out claims higher than the value of premium imposed on such cars.
Although insurers were more careful in offering individual third party motor insurance, the public can get third-party coverage from the Malaysian Motor Insurance Pool (MMIP), Najib said in a written reply Siti Zailah Mohd Yusof (PAS-Rantau Panjang).
MMIP is a pool contributed by all insurance companies and deemed as the insurer of last resort.
“The Finance Ministry and Bank Negara Malaysia is now making a study on creating an appropriate motor insurance scheme.
“The plan, which was announced in the Budget 2010 speech, will offer an insurance coverage scheme with reasonable premium rates.
“The new scheme will allow the process of making insurance claims easier and faster,” he said in a written reply Siti Zailah Mohd Yusof (PAS-Rantau Panjang).
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