Gerakan welcomes the delayed implementation of the proposed basic third party motor scheme insurance by Bank Negara to gather more feedback from the public and all stakeholders.

Gerakan Deputy President and Head of Human Rights and Law Bureau Datuk Chang Ko Youn said Bank Negara has put the people’s interest first in listening to the public grouses and allowing more time for consultation, instead of submitting the proposals to the Finance Ministry next month as originally scheduled.

“We welcome the delay as such a crucial decision will affect the livelihood of the rakyat, especially the poor and low-income groups,” stressed Chang, who added that it must always be “People First, and not the insurance industry”.

“This is a healthy precedent, instead of steamrolling the proposal across for the rakyat’s consumption. The Government knows best era is clearly over,” said Chang, who reasserted Gerakan’s stand in a memorandum submitted to Bank Negara on the Third Party Bodily Injury and Death (TPBID) scheme.

Chang called on Bank Negara to analyse and look into issues highlighted in Gerakan’s memorandum on TPBID, namely limiting heads of damages and capping the claims are detrimental to the public; protection must be equal for everybody and not limited to a certain segment of society; grossly misaligned motor premium; and the avoidance of setting up a new company (newco) as it will involve huge tax payers money.

“The current system of third party bodily injury and death claim should be maintained and improved,” said Chang, who further explained that introducing a new scheme with the inherent weaknesses would only be a waste of time and money.

Chang urged Bank Negara to consult stakeholders beforehand in any future proposals so that an amicable solution can be achieved.

Bank Negara was reported to have delayed the implementation of the third party insurance scheme and was looking at setting up a task force to improve settlement of claims before submitting the proposals to the government.