Most Malaysians are unclear about insurance coverage for motor vehicles, let alone boats that ferry passengers.
A good understanding of how insurance works is necessary to ensure boat passengers are adequately covered.
I am not in favour of using the word “protection”, which insurance companies like to use, as it gives a false sense of security. Real protection comes from safe roads, good weather, vehicles, equipment and drivers, and not from insurance policies that few can understand fully.
I would rather travel in a safe vehicle without insurance than a fully insured unsafe jalopy.
It is worthwhile to examine the various types of insurance that cover passengers in public service vehicles, such as taxis, tour vans and buses. Basically, there are three main types.
Firstly, life insurance, which insurers pay out in the event of the insured’s death or permanent disablement, caused by illness or accident.
Secondly, personal accident insurance (PAI), which can be for a year or short term, such as travel insurance.
PAI normally includes cover for medical expenses. But medical coverage is often overlooked and victims have to top up with his own money if treated at private hospitals.
The third is public liability, which few companies bother to buy.
In Malaysia, the law requires all motor vehicles to be insured for third party injuries, and all public service vehicles for passenger liability.
For example, if a tour van lands in a monsoon drain and no other vehicle is involved, the driver is at fault.
If the injured files a civil suit, they have to wait years before they are awarded compensation by the court.
It will be hard for locals to wait, what more foreigners.
But if a runaway lorry were to crash into the van, those injured would have to sue the lorry driver at fault. It would be a fruitless exercise if the vehicle was a lori hantu (unlicensed lorry), without third party insurance cover.
Taxis and buses that have insurance coverage for passengers are required to adhere to the terms and conditions of the insurance policy.
Drivers of tour vans and buses should be reminded that they should not make police reports on their own without first consulting a superior well-versed on insurance requirements and making police reports.
Should the insurance company choose to repudiate claims when terms and conditions are breached, it will not help the vehicle owner or driver and, least of all, the injured victims.
Cases can also be complicated when accidents are caused by vehicles that then flee the scene.
It would be a good idea if more vehicles are fitted with dashboard cameras, even one for the rear view. Apart from recording offences, it can also aid navigation.
If the authorities could investigate offences captured by these cameras, our roads would be much safer.
Insurance companies should champion this as it will lead to less accidents and insurance claims.
C.Y. MING
Ampang