Lack of buses in Malaysia could stall festive rush

KUALA LUMPUR - Thousands of commuters could find themselves stranded with no transport home for the Chinese New Year and the extended weekend with express bus companies caught in an insurance bind.

A new condition for insurance has taken the companies and even regulators by surprise and may force hundreds, if not thousands, of buses off the roads.

The Malaysian Motor Insurance Pool (MMIP) wants all buses to have a special tracking device before they can get insurance and, thus, road tax.

The requirement came just a few weeks before the festive rush home begins.

Some bus operators said they received a letter from the MMIP in mid-January telling them to install the special tracking device in their buses from Feb 1.

The letter said the new telematics product was being introduced to address the "high incidence" of bus accidents and deaths.

It said the device would have to be installed in the buses so MMIP could monitor and alert companies of drivers who did not meet certain standards.

Among others, the bus telematics device can record a driver's behaviour in real-time, such as how he takes corners, uses the brakes and his speeding pattern.

The letter said the devices were to be installed at least two weeks before a bus' motor policy renewal date "to avoid any inconvenience".

The MMIP said in the letter that it was partnering with a company known as Vehicle Telematics Online Services Sdn Bhd for the device installation.

A booking form viewed by The Star showed that the device and installation would cost RM2,300 (S$780) apiece. An off-site installation would cost an extra RM200. On top of this, an operator would be charged an annual fee of RM900 per bus.

Any vehicle that does not have an insurance policy cannot apply for the road tax, keeping them off the roads.

While bus operators were not against the measure, many opposed the fees charged.

"If I have 100 buses, my initial cost will be RM340,000. I don't have the money!" Johor Bus Operators Association president J Suchdav said.

He said the MMIP did not speak to operators before coming up with the requirement.

The new fees are an extra pain for express bus operators, who cannot offset their costs, and have had to deal with fares remaining unchanged since 2008.

While the total number of buses that are unable to renew their insurance policies by this week is unknown, Suchdav said "about 100" buses would not be on Johor streets over the holidays.

Konsortium Transnasional Bhd managing director Tan Sri Mohd Nadzmi Mohd Salleh said he only knew about the move through the "industry grapevine".

He said express buses already had GPS devices installed in them - thanks to an earlier requirement by the Land Public Transport Com­mission (SPAD) - and that another was not needed.

"The GPS is already doing that, why do you need so many systems?" he said angrily.

He said KTB's operations would not be affected this Chinese New Year, but worried about the costs to his company's 1,400-plus buses.

Pan Malaysian Bus Operators Association (PMBOA) president Datuk Ashfar Ali said some of his members might not be able to send their buses out this week.

"There will be fewer buses that we can put on the road, so I'm asking them (MMIP) not to implement it now," he said.

He said that while the PMBOA was concerned about accidents and safety, the MMIP's move was not the right way to do it.

"We want them to postpone this until April or May until we can resolve this issue," he said.

Online reports showed that there are 4,718 express buses, from over 47,000 buses nationwide, including school, tour and other coaches.

- See more at: http://news.asiaone.com/news/malaysia/lack-buses-malaysia-could-stall-festive-rush#sthash.iVmoGxzR.dpuf

lack boxes for commercial vehicles need buy-in 4 FEBRUARY 2016 @ 11:01 AM

Black boxes for commercial vehicles need buy-in 4 FEBRUARY 2016 @ 11:01 AM
Read More : http://www.nst.com.my/news/2016/02/125709/black-boxes-commercial-vehicles-need-buy

I REFER to “Johor Bus Operators Association seeks abolishment of monitoring device requirement” (NST, Jan 28). The majority of the 47,441 buses in the country are insured by the Malaysian Motor Insurance Pool (MMIP) as most insurance companies decline to insure them, particularly those with poor claims records. However, it would be unfair for insurers to lump all buses as high risk, as not all of them are. Moreover, there are different types of buses, such as stage, express, excursion, chartered, worker or school buses. MMIP was formed in 1992 to provide the minimum motor insurance coverage required by law for owners unable to or have difficulty securing motor insurance.

All general insurance companies operating in the country are required to share losses in this pool, as decreed by Bank Negara Malaysia. In an attempt to cut mounting losses, MMIP initiated this “black box” project. In January, bus operators were shocked when notified that motor insurance would not be renewed after Feb 1 unless their buses are fitted with a monitoring device by an appointed vendor. Unlike taxis, it is not easy to stop buses from running, as operators also have to seek approval from the Land Public Transport Commission (SPAD) to suspend services. Moreover, operators have to cough up RM3,400 for each monitoring device for installation, and RM900 annually for maintenance.

Over the past few decades, the attempts to introduce “black boxes” for commercial vehicles have been dismissed by the public as nothing more than money-making projects. Stage bus operators are making losses, as they are required to run unprofitable routes, and fares have to be kept low as the majority of the passengers cannot afford to travel in taxis or buy their own cars. Stage buses are critical for many people because of their extensive network, and more commuters ride them than trains. As it costs the government less to subsidise private stage bus companies than to expand government-run bus services, the “Interim Stage Bus Support Fund” was set up on January 2012. While stage bus companies are on life support, MMIP seems keen to draw blood from these ailing patients.

Earlier, many buses had been fitted with a Global Positioning System, allowing SPAD to monitor and track them. Surely this is known to MMIP, so, what is the justification for another monitoring device? If MMIP requires funding, it should turn to government agencies, such as Bank Negara, and enlist support from SPAD instead bleeding stage bus operators. Just like the Automated Enforcement System, vehicle telematics is also an effective measure to promote road safety. But, without seeking the necessary buy-in, it is sure to result in a public outcry. n YS CHAN, Kuala Lumpur
Read More : http://www.nst.com.my/news/2016/02/125709/black-boxes-commercial-vehicles-need-buy

Gov’t mulling age limit for commercial vehicle drivers

In Local News / By Gerard Lye / 8 January 2016 5:30 pm /

The government may be required to enforce an age limit for drivers that operate commercial vehicles. This comes in light of a recent decision by insurance companies to no longer provide coverage for commercial vehicle drivers over the age of 65.

According to The Sun, Deputy Transport minister Datuk Aziz Kaprawi indicated that the Road Transport Department (JPJ) may have to review the issuance of the Goods Drivers Licence (GDL) and Public Service Vehicle (PSV) licence to elderly drivers.

“It looks like we have to synchronise the regulation for commercial vehicle drivers due to the latest policy by the insurance industry,” he said. However, Aziz stated that the Transport Ministry will meet with Bank Negara Malaysia and various insurance players to come to a consensus on the issue, with the aim of extending the age coverage for commercial vehicle drivers.

Warranty W.4CV, which deals with the age limits for drivers of commercial vehicles outlined by Malaysian Motor Insurance Pool (MMIP), says that “only drivers whose age is between 21 and 65 years on the driver’s last birthday shall be permitted to drive the insured vehicle.” It is yet unknown when the policy came into effect, but it is believed that insurance companies have been applying it since 2014.

Established in 1992, and is a special-purpose entity set up and owned collectively by all general insurance companies operating in Malaysia. Its primary aim is to provide motor insurance coverage to vehicles which may be considered ‘high risk’ and which will not be underwritten by any single insurance company.

The Sun said the issue came to prominence when a 73-year-old lorry driver, Liew Kon Yew, discovered he was not covered under the company’s insurance policy after getting involved in a road accident in Kajang with an MPV two years ago. An experienced driver, Liew has had clean records of more than 40 years driving many different types of lorries.

Malaysia Heavy Construction Equipment Owners Association commercial affairs officer Lam Kok Wai chimed in on the issue, stating that industry players were caught by surprise with the policy. “We admit that we didn’t read all the clauses in the insurance policy as drivers above 65 had been getting coverage,” he said.

“Mr Liew passed the medical test every year as he was deemed to be in good health with excellent physical attributes. So it is puzzling that the MMIP is getting ahead of the government,” said Lam, who added that the real yardstick of able and healthy drivers is the annual renewal of GDL with RTD.

Meanwhile, Kuala Lumpur and Selangor Lorry Association general-secretary Alvin Choong said the MMIP’s decision to renounce liability when it comes to elderly commercial vehicle drivers is setting a bad precedent.

He deliberated that “to perceive that elderly drivers cognitive skill as weak is the responsibilities of the government. In doing so, driver over age 65 should not be able to renew their GDL, right?” He also suggested that the next best solution is to impose a slight surcharge on insurance premiums.

Malaysian School Bus Association Alliance president Mohd Rofiq Mohd Yusof also urged the authorities to put into consideration the livelihoods of nearly 10,000 drivers across the industry (taxi, lorry and bus operators). He said that many of them above 65 are government retirees and the operators of school buses and taxis. “They are safe and careful drivers. Why single them out? We are talking about their livelihood.”

Should commercial vehicle drivers over 65 years of age be denied insurance coverage? Or should they not be allowed to operate commercial vehicles altogether? What are your thoughts on the matter?

http://paultan.org/2016/01/08/govt-mulling-age-limit-for-commercial-vehicle-drivers/