I REFER to “Johor Bus Operators Association seeks abolishment of monitoring device requirement” (NST, Jan 28).
The majority of the 47,441 buses in the country are insured by the Malaysian Motor Insurance Pool (MMIP) as most insurance companies decline to insure them, particularly those with poor claims records.
However, it would be unfair for insurers to lump all buses as high risk, as not all of them are. Moreover, there are different types of buses, such as stage, express, excursion, chartered, worker or school buses.
MMIP was formed in 1992 to provide the minimum motor insurance coverage required by law for owners unable to or have difficulty securing motor insurance. All general insurance companies operating in the country are required to share losses in this pool, as decreed by Bank Negara Malaysia.
In an attempt to cut mounting losses, MMIP initiated this “black box” project.
In January, bus operators were shocked when notified that motor insurance would not be renewed after Feb 1 unless their buses are fitted with a monitoring device by an appointed vendor.
Unlike taxis, it is not easy to stop buses from running, as operators also have to seek approval from the Land Public Transport Commission (SPAD) to suspend services.
Moreover, operators have to cough up RM3,400 for each monitoring device for installation, and RM900 annually for maintenance. Over the past few decades, the attempts to introduce “black boxes” for commercial vehicles have been dismissed by the public as nothing more than money-making projects.
Stage bus operators are making losses, as they are required to run unprofitable routes, and fares have to be kept low as the majority of the passengers cannot afford to travel in taxis or buy their own cars.
Stage buses are critical for many people because of their extensive network, and more commuters ride them than trains.
As it costs the government less to subsidise private stage bus companies than to expand government-run bus services, the “Interim Stage Bus Support Fund” was set up on January 2012.
While stage bus companies are on life support, MMIP seems keen to draw blood from these ailing patients.
Earlier, many buses had been fitted with a Global Positioning System, allowing SPAD to monitor and track them.
Surely this is known to MMIP,
so, what is the justification for another monitoring device?
If MMIP requires funding, it should turn to government agencies, such as Bank Negara, and enlist support from SPAD instead bleeding stage bus operators.
Just like the Automated Enforcement System, vehicle telematics is also an effective measure to promote road safety. But, without seeking the necessary buy-in, it is sure to result in a public outcry.
n YS CHAN, Kuala Lumpur