SPAD worried over MMIP 'black box' policy
Posted on 31 January 2016 - 03:56pm
Last updated on 31 January 2016 - 05:08pm
Last updated on 31 January 2016 - 05:08pm
KUALA LUMPUR: The Land Public Transport Commission (SPAD) is concern over the compulsory "black box’ policy for buses by Malaysian Motor Insurance Pool (MMIP) which comes into effect from tomorrow (Feb 1).
SPAD chief executive officer Mohd Azharuddin Mat Sah said the telematics-based insurance product by MMIP is inconsistent with SPAD’s safety, health and environment code of practice (iCOP-SHE) policy for bus operators.
“We were caught by surprise with this latest move by MMIP,” he said. “For us, the GPS installation in express buses and tracking via our Performance Monitoring Hub System (PMHS) are sufficient.”
Under iCOP-SHE policy, he said the GPS-tracking device can be installed at any authorised installers as long as it interacts with SPAD’s PMHS control centre.
Meanwhile, Malaysia Competition Commission (MyCC) will conduct a probe whether the required telematics-based insurance product and black box installation by a sole vendor are against competition.
“MyCC will look into this matter in the context of the application of Competition Act 2010,” said a MyCC’s statement to theSun.
According to a letter distributed by MMIP since early this month, the telematics device must be installed by its sole partner – Vehicle Telematics Online Services Sdn Bhd (VTOS), at least two weeks before the renewal date of the motor policy.
theSun understands bus operators would have to bear the cost of the device totaling RM3,400 - consisting of RM2,300 per item, RM200 installation fee (outside Klang Valley) and RM900 annual service fee.
MMIP, as a high risk insurance pool organisation, stated it introduced the safety measure to safeguard the millions of passengers, "by introducing Insurance telematics to identify and monitor every driver in control of its insured vehicles on a 24/7 basis."
“As an incentive for this introduction of telematics insurance, MMIP will provide a 10% discount on the premium loading imposed for all motor insurance policies,” said the letter.
Currently, there are 4,718 express buses; school buses (16,356), stage buses (6,931), chartered bus (702), workers' buses (13,081) and tour buses (5,653) in the country, with most bus operators opting for MMIP third-party insurance scheme.
Telematics is the wireless telecommunication technologies to transmit data in real-time to track driver’s behaviour and performance, including travelling speed and other useful information to promote safe driving. It is normally targeted for risky groups such as young drivers and commercial fleets.
Thailand’s Bangkok Insurance will also adopt the telematics concept in April this year. It has been a common practice by insurance industry in the US, Italy, United Kingdom and Japan, to place on-board diagnostics device that tracks drivers’ performance.