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Ministry to look into mandatory car passenger insurance

KUALA LUMPUR: The Transport Ministry will look into the need for mandatory insurance coverage for car passengers following a Federal Court ruling, said Minister Anthony Loke.

He said he will instruct the ministry's Land Division to study the court's decision before deciding on any policy changes.

"We need to assess its impact on our legislation before making any policy decisions, as it will undoubtedly affect insurance costs and other related matters. Therefore, a thorough review is necessary.

"I am confident that any measures we take must strike a balance. The key issue is the Federal Court's decision. We need to assess whether it necessitates amendments to our acts," he said at the Asian Maritime Law and Business Conference 2024 here today.

Loke was responding to questions about the Federal Court ruling, which determined that passengers travelling in a vehicle for work purposes can claim compensation from the vehicle's insurers for injuries sustained in an accident.

The case involved an appeal by Chen Boon Kwee, challenging a Court of Appeal decision in favour of Berjaya Sompo Insurance Bhd. The insurer had disclaimed liability, arguing that the policy did not cover members of the vehicle owner's household.

Chen, a passenger in a Toyota Camry car owned by his wife, Tan Saw Kheng, driven by his colleague Masri Tamin, sustained injuries in a road accident while on a work-related assignment in 2015.

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