By Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjung, Lim Kit Siang, in Penang on Monday, 13th June 1994:
Finance ministry should investigate whether Bank Negera had initially given the ‘green light’ to certain motor insurance companies to reject insurance cover for old cars
The statement by the Deputy Finance Minister, Senator Datuk Mustapha Mohamed, that the Finance Ministry will take action if insurances firms continue to refuse to issue policies for old vehicles is most welcome and timely.
However, the Finance Ministry should investigate whether Bank Negera had initially given the ‘green light’ to certain motor insurance companies to reject insurance cover for old cars-such as those over 10 years for ordinary vehicles and over five years for commercial vehicles.
This is because a Bank Negara spokesman had at the beginning said there was nothing wrong for insurance companies to reject insurance cover for vehicles over ten years of age and commercial vehicles over five years old.
The High-Risk Motor Insurance Pool of the General Insurance Association of Malaysia (PIAM) should only be meant for vehicles with a special record and background involving high risk insurance-and not meant for blanket use for all vehicles more than ten years old or commercial vehicles more than more five year old, especially as the premium are very high and the procedures for approval are very cumbersome.
For the past month, many motorists in various parts of the country who wanted insurance cover have been pushed from pillar to post involving great inconvenience and hardship. As the regulatory authority for the insurance industry, Bank Negara is responsible to protect the interests of ordinary motorists.
As Bank Negara has branches in the various states, Bank Negara should set up motor insurance complaints centre in each state where motorists can ask for redress where they have complaints about unreasonable, unilateral and arbitrary refusal by motor insurance companies to give motor insurance cover.