Need for passenger coverage in Malaysia 25 DECEMBER 2015 @ 11:02 AMIREFER to the report “We didn’t know firm’s past record” (NST, Dec 22). Another bus accident, this time in Thailand, should prompt us to relook safety and insurance with closer scrutiny. Tour operators are required to attend the Travel and Tours Enhancement Course (TTEC) to renew their tour operating business and travel agency business licence with the Tourism and Culture Ministry.
One of the five TTEC modules is on the safety and security of tourists, in which they are reminded to check on reports of accidents or incidents. It has now surfaced that the bus company in the accident that killed 13 Malaysians on Sunday was involved in another crash on Oct 23, 2013, which killed 21 Thai passengers and injured 17. The local outbound tour operator had left it to the Thai agent to charter a bus which was driven by an unstable individual, who had tried to flee after an earlier collision. The second accident occurred after the bus overtook three vehicles while speeding downhill. The driver lost control when he swerved the bus violently to the left to avoid oncoming traffic, plunging the vehicle into a ravine.
Back home, the Safety Star Grading (SSG) programme initiated by the Malaysian Institute of Road Safety Research (Miros) should be stepped up, and not limited to voluntary participation by bus operators. SSG will drive consumers to opt for safer operators, forcing bus companies to upgrade their safety standards and star ratings to be competitive. With safety in place, insurance cannot be left unchanged. It is essential for everyone to be clear about coverage and claims. Those who are covered under life insurance can be assured that the beneficiary will be entitled to the sum insured regardless of how they die, or they will receive the amount in the event of permanent total disability. Those who buy additional personal accident insurance (PAI) will also receive a specific amount for injuries caused by accidents, or the amount paid for medical expenses within the limited cover.
Travel insurance is for short-term cover and usually includes PAI and sudden illness, which is not just advisable because of high medical costs in developed countries, but also to gain admission into hospitals where payments need to be guaranteed. As for the Batu Pahat tour group, it was reported that the 22 passengers will receive an insurance compensation of RM100,000 each. This is unlikely as compensation would be less for the injured than those killed. The Thai government, through its insurance office, will pay 1.6 million baht (RM190,160) to each next of kin of the deceased, and injured passengers up to 600,000 baht.
Prime Minister Datuk Seri Najib Razak had directed the Royal Malaysian Air Force to deploy an aircraft to bring the victims home, together with family members who had flown there earlier to identify the remains. Should a tragic bus accident occur within our country, the victims or their families may not get any compensation, other than their own insurance cover. This is because passengers in buses and taxis are not insured.
Under Malaysian law, it is only mandatory for motor vehicles to be insured for third party injuries. Public service vehicles, such as buses and taxis, ought to be insured for legal liability to passengers. This only insures the drivers against any claims from those injured in accidents caused by them. But such covers are only valid when all conditions are met, such as not driving under the influence of drugs or alcohol, and there may be contention if the driver’s or public service vehicle licences are not valid, the bus is overloaded or the taxi is running on bald tyres.
Although compensation that commensurate with the earning power of individuals seem fair, it normally take years for the court to award, prolonging the suffering of victims or their families. It is time for this antiquated law to be replaced with a fixed-sum PAI cover, which can be paid out speedily without having to establish fault. Perhaps the Malaysian government should have a similar insurance office to collect the portion of motor insurance premiums meant to cover road accident injuries, and pay out compensations swiftly as what their Thai counterparts are doing. n C.Y. Ming, Ampang, Selangor
Read More : http://www.nst.com.my/news/2015/12/118979/need-passenger-coverage-malaysia
Read More : http://www.nst.com.my/news/2015/12/118979/need-passenger-coverage-malaysia
