LETTERS: ON Nov 2, a lorry from Tawau heading for Semporna in Sabah veered into the opposite lane of the road and crashed into a tour bus, killing a passenger.
The bus was on its way to Tawau Airport with 15 tourists from China.
The collision sent the bus skidding and it landed on its side. The 14 other passengers escaped unhurt. The bus driver broke his leg and was sent to Tawau Hospital.
As for the deceased, the family will have to decide whether the body is buried or cremated in Sabah or repatriated to China. Apart from the costs involved, will the family of the deceased get compensation?
Over the past decades, inbound tour operators have been assuring their overseas counterparts that travellers in tour buses and vans in Malaysia are covered by insurance. I beg to differ.
I have asked tour vehicle operators to state their insurance name, type and amount of cover and when are claims usually paid. These are stated in personal accident insurance (PAI) policies, including travel insurance.
PAIs pay the maximum sum insured in the event of death or permanent disability, which can be RM100,000 or many times higher.
The payout is prompt as there is no need to establish who was at fault and coverage is round the clock.
The more knowledgeable operators say their motor insurance policies include legal liability to passengers.
This does not cover the passengers but only the driver's liability to passengers in the event the driver is at fault in an accident that results in injury to passengers.
For such coverage, injured passengers will have to hire lawyers to sue the driver to get compensation.
It takes several years to reach a court decision, and the quantum varies according to the extent of injuries, suffering, loss of livelihood and medical expenses.
The motor insurance company is obliged to pay if the tour bus and driver are in full compliance with the terms of the policy. If not, coverage can be cancelled, and the insurer will repudiate any claim.
This can happen if the vehicle is driven under the influence of drugs or alcohol.
And drugs are not limited to narcotics or substance abuse but also common medications that can cause drowsiness, such as antihistamines and cough syrups.
Although consuming excessive amounts of alcoholic drinks is the common cause of intoxication, drivers can also get high by inhaling the fumes of certain types of glue.
In the Sabah accident, the bus driver was not at fault.
So it would be fruitless to sue the bus driver for legal liability to passengers.
Instead, the deceased's family could sue the lorry driver under third-party cover for causing injuries, which is mandatory for motor vehicles in Malaysia.
But if the lorry or its driver were in breach of terms and conditions of the motor insurance policy, it is likely the insurance company would repudiate coverage.
If so, the deceased's family would win only a paper judgment when the lorry driver has no means to pay compensation.
Some years ago, several Chinese tourists were injured in a bus accident in Thailand and were adamant in demanding immediate compensation instead of allowing the law to take its course.
The situation was defused after the Thai government stepped in to pay out of goodwill.
In Malaysia, it is imperative that contracts signed between local and overseas tour operators include clauses that spell out how passengers injured in tour buses and vans could claim compensation, and the entire process could take a few years.
So it is recommended that tourists buy their own travel insurance to cover physical injuries, illnesses, medical expenses and other contingencies, as they are easily claimable according to the amounts insured without having to establish fault and wait for a court decision.
Regardless of the amounts covered by their own life, accident and travel insurance policies, injured tourists can still sue for compensation.
But most would not bother as suing overseas could be too troublesome and would rather leave the sad episode behind.
Taxi and bus operators must ensure their vehicles and drivers are in compliance with the terms and conditions of the motor insurance policy.
If not, there is no cover for legal liability to passengers, and the driver and vehicle owner are personally liable for damages.
Vehicles licensed under hire-and-drive permits and private cars can also be insured for legal liability to passengers, but the insurance premium for the former is much higher than luxury taxis.
And just like the vehicle's motor insurance, the legal liability covers only private use as hire-and-drive vehicles are not allowed to carry fare-paying passengers and private vehicles cannot be used for hire or reward, unless granted prior permission by the insurance company.
Y.S. CHAN
Kuala Lumpur
The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times