MOT Reviewing Private Car Passenger Insurance Mandate

The Ministry of Transport (MOT) is reviewing the potential implications of mandating private vehicle passengers insurance. This is similar to private e-hailing insurance, and it will significantly affect insurance costs for vehicle owners.

The Minister of Transport, YB Anthony Loke, detailed earlier today the his ministry will conduct a comprehensive study to assess the policy's impact, including its compatibility with existing laws.

According to Loke, “We will direct the Land Division of the Ministry of Transport (APAD) look into this matter further as thorough cost analysis is needed before any policy changes are made."

He further added, "If implementation of this policy is considered, it must strike a balance and needs to be run through the Federal Court to determine if amendments to current legislation is required."

This matter was raised response to questions about a recent Federal Court ruling that allows passengers traveling in vehicles for work purposes to claim compensation from the vehicle's insurance company for injuries sustained in accidents.

The court's decision has reignited discussions on whether Malaysia should require insurance coverage for passengers in private vehicles, ensuring their right to compensation in case of accidents.