Saturday, June 12, 2010

Proposed New Insurance Scheme by Bank Negara

Press Statement

1. DAP calls on the Government to consult all stakeholders before implementing the proposed new scheme by Bank Negara Malaysia to cover third party bodily injury and death.

2. DAP calls on the Government to review the limits imposed by the Civil Law (Amendment) Act 1984 on the quantum of damages for personal injury claims which does not reflect the actual loss suffered by the victims or their families.


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Bank Negara Malaysia (BNM) has proposed to introduce a new scheme to cover third party bodily injury and death which it hopes to implement in the second half of 2010.

Several DAP MPs had a meeting with representatives from the Bar Council led by its President, Mr Ragunath Kesavan yesterday. Having studied the proposed scheme, DAP MPs are of the view that the proposed scheme has wide implications and ramifications.

The DAP calls on the Government to be transparent on the proposed scheme and allow all stakeholders’ views to be taken before any decision to implement the said scheme is made. A committee where all stakeholders are represented must be formed to study the proposed scheme before the Government makes any decision.

Meanwhile, the DAP calls on the Government to immediately review the limits imposed by the Civil Law (Amendment) 1984 where only a sum of RM10,000-00 is paid for a death purportedly for bereavement and no loss of income is allowed if one has reached the age of 55. It also does not allow a victim to claim for any loss of income though he is highly qualified and has the potential of high earnings if at the time of accident he is not gainfully employed. The limits imposed are grossly unfair and unjust as they do not reflect the actual loss suffered by the victims.

Dated this 10th day of June 2010.

Dato' Ngeh Koo Ham
Assemblyman for Sitiawan
MP for Beruas