Parliament: Decision on motor insurance coverage by the middle of 2010

Post date: Mar 31, 2010 6:9:3 AM

Published: Tuesday March 30, 2010 MYT 7:07:00 PM

Updated: Tuesday March 30, 2010 MYT 7:09:23 PM

KUALA LUMPUR: The decision to introduce a new basic motor insurance coverage will be finalised by the middle of the year, Second Finance Minister Datuk Ahmad Husni Hanadzlah said.

He added the formation of a special company to oversee the new insurance scheme is being studied by Bank Negara Malaysia.

“The study will take into account the problem faced by consumers in getting claims made through the legal process.

“It will also ensure that contributors will be able to receive their payments faster,” he said in replying to points raised during the debate on the ministry.

During the Budget 2010 announcement, the Government said a basic third-party bodily injury and death motor insurance scheme would be created at a reasonable premium commensurate with the level of protection provided.

On the Permata Negara programme, Husni denied that the financial allocation for the primary and secondary schools would be reduced to help finance the programme.

“In fact, the Education Ministry’s operational budget for primary and secondary schools have been increased, of which RM10.13bil was allocated for primary education, while RM8.8bil was given for the secondary schools. In 2009, the allocation for primary schools was RM9.52bil and RM8.32bil,” he added.

Husni said the 2010 Budget provided RM100bil for the Permata programme, which is managed by the Prime Minister’s Department.

It was created to ensure that the programme would provide quality education for children from four years old and below, he added.