The Barisan Nasional Backbenchers Council (BNBBC) shares the concern and anxiety of the Consumers Association of Subang & Shah Alam Malaysia (CASSA) and the Bar Council Malaysia that Bank Negara Malaysia plans to introduce a new scheme to cover the third party bodily injury and death which is indicated that it will finalize for implementation by the second half of 2010.

BNBBC strongly urge Bank Negara Malaysia to seriously reconsider and withhold the said proposal as we believe the said scheme once implemented will alter adversely the landscape of motor vehicle insurance to the detriment of motor accident victims, their families, dependents, especially to the poor families in general. 

As BNBBC we cannot but state that any proposal to be introduced a new scheme must be fair, reasonable and take into consideration of the rights and interests of all the stakeholders and primarily the Malaysian consumers and victims. 

We urged Bank Negara Malaysia to be consultable, being accommodative and encourage all the feedbacks from the ground on this scheme. No action that will be interpreted as being partial to the insurance industry on the basis of profitability. By doing this, it will tarnish the good image of Barisan Nasional government, antagonizing too the good will of country mission under “People first, Performance now” vision which called by our beloved Prime Minister. 

The Bank Negara Malaysia must realize that the comment on the ground indicated that the proposed scheme was seem to encourage the malpractices of monopolization in insurance industry. It will also create a public image that Bank Negara Malaysia is helping the rich by depriving the poor. 

BNBBC maintains that the function and discretion of the Courts in deciding these issues of liability or quantum must be respected and maintained, due to seriousness of cases shall be considered respectively. 

BNBBC is aware that the quantum for damages for personal injury claims is seriously limited under the Civil Law (Amendment) Act 1984 and we note that there has been vast improvement of the current court system which has resulted in speedy resolution of disputes, clearance of backlog of cases, mediation in courts, the establishment of dedicated courts for accident cases and the introduction of guidelines on the quantum of awards to enhance consistency. 

In such an atmosphere, BNBBC feel strongly that rather than introducing a new scheme in hurries or rush manner, it will definitely create controversy and misunderstanding between the people on the ground and government. 

BNBBC will forward the memorandum to the Prime Minister cum Finance Minister Dato Seri Najib appealing for his kind perusal and action. 

Lastly, BNBBC would like to urge again the Bank Negara Malaysia to call and work together with all stakeholders, notably Consumers Association of Subang & Shah Alam (CASSA) Malaysia and the Bar Council Malaysia in further improving the existing system to improve effectiveness and efficiency, especially for the interest of the poor, so as to encourage the healthy growth of insurance industry by not omitting its social obligation.