17 October 2007

Opinion

ATTORNEY-General Tan Sri Abdul Gani Patail�s proposal for a no-fault liability scheme for motor vehicle accidents could be a benefit to the public, provided this scheme is guided by the principles of transparency. �

The no-fault liability scheme aims to cut back on lawsuits since fault does not have to be determined, and it restricts the right of policy-holders to sue. Everyone pays for his or her own losses from a car accident.�

No-fault liability has the goal of lowering premium costs by avoiding litigation and providing quick payment for injuries suffered. However, the policy-holder will have to pay a higher premium. Thus, this scheme does not seem to punish reckless or negligent drivers. �

I am of the view that the following should be answered before the implementation:�

1. The scheme appears to have catered for compensation to personal injuries but there seems to be no direction in regard to damages to vehicles in an accident.�

2. What is the amount for which a driver must self-insure? What type of losses would be compensated? �

3. Will the scheme be replaced by the universal compensation systems where payment is effected irrespective of fault?�

4. Will the public know how much they can claim for specific injuries?�

5. Will the requirement on documents in support for the claim under the insurance policy such as JPJ reports, medical reports, specialists� reports be burdensome? �

6. Does the new scheme cover medical expenses, future medical expenses, pain and suffering, mental anguish, loss of income, loss of earning capacity, dependency claim, etc?�