Why the motor insurance industry needs an overhaul

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The recent accident when the MRR2 highway bridge collapsed killing two, is a wake-up call to fix Malaysia’s backward motor insurance industry. FMTNews

With so many stretches of the Klang Valley converted into construction sites for highway projects, motorists plying these routes are rightly concerned for their safety.

“Our laws must be reviewed to compel insurance companies to respond to third-party bodily injury and death claims, as the companies have the financial ability. “But we cannot follow wholesale the way of Western economies due to their high litigation environment as this would make the cost of business very high.”Haddon’s MatrixDr William Haddon, one of the first supporters of air-bags in cars, developed a matrix of factors and design under which road trauma injuries and deaths can be avoided.

According to Haddon’s Matrix, these deaths could have been avoided if the employer of the transport company had ensured that its employee or contractor was fit to pilot such a heavy cargo. In keeping costs low, motorists and road users are not as well covered as they can be if insurance companies were allowed to compete and charge premiums based on usage and the risk profiles of drivers and transport operators.

 

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