The Sun
Bank Negara however claimed the scheme is still at proposal stage and it would get feedback from all stakeholders next month before presenting to the government.
“Certainly, I will tell Bank Negara that they will need to engage and consult the consumer groups and associations," said Najib who is also Finance Minister.
“If there are changes, then all stakeholders should be consulted, not only the insurance companies but also consumer groups," he said last night in response to questions posed on "Setahun di Aras 5: Temubual Khas Bersama Perdana Menteri" -- a programme featuring a special interview marking his first anniversary in office as Prime Minister. Najib was sworn in as the sixth Prime Minister on April 3, 2009.
Najib, who is also Finance Minister, said motor insurance industry was in need of an overhaul as it was a loss-making business in terms of premiums collected and payments.
“There is a serious deficit. What is happening is that people are using their profits from other kinds of insurance, particularly life insurance, to subsidise motor insurance," he said.
The Government, when tabling the 2010 Budget, had announced the need to provide a basic motor insurance coverage for TPBID, at a reasonable premium that commensurate with the level of protection provided.
A source told Bernama some of the changes proposed under TPBID were drastic.
If a father aged 56 and was retired dies in an accident, his children will have no claim for loss of support as the Act only catered for compensation for people working until 55.
Likewise, if a son soon to graduate from university dies from a road accident before he starts work, the family gets nothing, he said.
He expressed dismay that the TPBID seemed to be rushed through without consultation and this does not inspire confidence especially when a new company to manage the scheme has been proposed.
The Prime Minister also commented on a number of issues, including: -
>> Affirmative action policy stays:
The government will not do away with its affirmative action policy but ensure it is carried out in a fairer and more transparent manner to improve the lives of Malaysians in the bottom 40% of the population. The implementation of the policy would be more market-friendly, more merit-based, and also more on a needs basis.
"For example, I say if you want to eradicate poverty, if you want to address the lower 40% population with income below RM1,500 a month, you must also take care of the non-Malays or non-bumiputras as well. When you talk about bumiputras, it is not synonymous with Malays.
What about the Iban, Kadazan, Bidayuh and the like? They are also bumiputras and they have the same rights."
"Let us not be too corrupt with a certain way of looking at things but let us look at ways that really create the sense of belonging that we are together as one nation and one people," he said in response to a question on Perkasa, the Malay non-governmental organisation, which said that 67% of the country's wealth should belong to the community.
>> Lies against 1Malaysia due to greater acceptance:
The allegation that 1Malaysia was purportedly derived from foreign countries, including Israel, is a total lie by the opposition, and is aimed destroying or tarnishing the concept after the idea received growing acceptance by the people.
“They (the opposition) dare not attack the 1Malaysia Concept; They cannot dispute it, so they try to destroy, tarnish the concept by alleging that the idea purportedly came from another country. This is slander, completely unfounded."
>> Better pay for civil servants with higher productivity:
The government needs the support of the 1.2 million civil servants to implement its initiatives to strengthen the economy and revenue base. With stronger income, the government can provide a better deal for all citizens, including improved salaries for government servants.
"Their wages will be adjusted as we go along, provided productivity goes up. What is important is that the economy gets stronger, and government revenue gets stronger."
>> Malaysia to remain conducive investment destination:
The country will be more responsive to the needs of foreign and domestic investors given the stiff competition in the international marketplace.
"We realise that the economic environment has changed. There are many more new emerging economies offering very attractive and considerably much lower labour cost than we can and some of them are quite substantially large markets.
“The world today is different than what it was in the 80s and Malaysia needs to compete with many more countries. We will be able to attract our share of FDIs this year and next year."
>> Effective delivery system:
Emphasis on a more efficient public sector delivery system in implementing the RM67 billion stimulus package is crucial in lifting the economy quickly out of the doldrums after it was severely affected by the global recession last year.
“The hundreds and thousands of projects, big and small, being implemented under the stimulus package and delivered to the ground helped to turn the economy around in such a short period. It is a very clear manifestation of the success of the government’s administration including civil servants who have been working hard to deliver the stimulus packages,"he said.
The public delivery system was enhanced with the setting up of the Project Management Unit under the Finance Ministry to ensure projects and programmes were executed efficiently to ensure maximum impact on the economy.
Malaysia’s Gross Domestic Product registered a positive growth of 4.5% in the last quarter of last year from a negative growth of 6.2% when the package was first unveiled in March 2009.
PUTRAJAYA (April 4, 2010): Bank Negara Malaysia must take into consideration the plight of the people when proposing new basic motor insurance coverage for third-party bodily injury and death -- just like enacting any other policy.
Prime Minister Datuk Seri Najib Abdul Razak said the central bank should consult consumer groups, associations and the public to iron out disagreements before committing to the new policy known as the Third-Party Bodily Injury and Death (TPBID).
theSun had reported recently that plans are in the offing to limit third-party motor insurance claims to RM100,000, inclusive of hospitalisation, rehabilitation, pain, suffering, loss of income and future earnings, a move that would affect millions of ordinary people at risk of road accidents.
Prime Minister Datuk Seri Najib Abdul Razak said the central bank should consult consumer groups, associations and the public to iron out disagreements before committing to the new policy known as the Third-Party Bodily Injury and Death (TPBID).
theSun had reported recently that plans are in the offing to limit third-party motor insurance claims to RM100,000, inclusive of hospitalisation, rehabilitation, pain, suffering, loss of income and future earnings, a move that would affect millions of ordinary people at risk of road accidents.
Bank Negara however claimed the scheme is still at proposal stage and it would get feedback from all stakeholders next month before presenting to the government.
“Certainly, I will tell Bank Negara that they will need to engage and consult the consumer groups and associations," said Najib who is also Finance Minister.
“If there are changes, then all stakeholders should be consulted, not only the insurance companies but also consumer groups," he said last night in response to questions posed on "Setahun di Aras 5: Temubual Khas Bersama Perdana Menteri" -- a programme featuring a special interview marking his first anniversary in office as Prime Minister. Najib was sworn in as the sixth Prime Minister on April 3, 2009.
Najib, who is also Finance Minister, said motor insurance industry was in need of an overhaul as it was a loss-making business in terms of premiums collected and payments.
“There is a serious deficit. What is happening is that people are using their profits from other kinds of insurance, particularly life insurance, to subsidise motor insurance," he said.
The Government, when tabling the 2010 Budget, had announced the need to provide a basic motor insurance coverage for TPBID, at a reasonable premium that commensurate with the level of protection provided.
A source told Bernama some of the changes proposed under TPBID were drastic.
If a father aged 56 and was retired dies in an accident, his children will have no claim for loss of support as the Act only catered for compensation for people working until 55.
Likewise, if a son soon to graduate from university dies from a road accident before he starts work, the family gets nothing, he said.
He expressed dismay that the TPBID seemed to be rushed through without consultation and this does not inspire confidence especially when a new company to manage the scheme has been proposed.
The Prime Minister also commented on a number of issues, including: -
>> Affirmative action policy stays:
The government will not do away with its affirmative action policy but ensure it is carried out in a fairer and more transparent manner to improve the lives of Malaysians in the bottom 40% of the population. The implementation of the policy would be more market-friendly, more merit-based, and also more on a needs basis.
"For example, I say if you want to eradicate poverty, if you want to address the lower 40% population with income below RM1,500 a month, you must also take care of the non-Malays or non-bumiputras as well. When you talk about bumiputras, it is not synonymous with Malays.
What about the Iban, Kadazan, Bidayuh and the like? They are also bumiputras and they have the same rights."
"Let us not be too corrupt with a certain way of looking at things but let us look at ways that really create the sense of belonging that we are together as one nation and one people," he said in response to a question on Perkasa, the Malay non-governmental organisation, which said that 67% of the country's wealth should belong to the community.
>> Lies against 1Malaysia due to greater acceptance:
The allegation that 1Malaysia was purportedly derived from foreign countries, including Israel, is a total lie by the opposition, and is aimed destroying or tarnishing the concept after the idea received growing acceptance by the people.
“They (the opposition) dare not attack the 1Malaysia Concept; They cannot dispute it, so they try to destroy, tarnish the concept by alleging that the idea purportedly came from another country. This is slander, completely unfounded."
>> Better pay for civil servants with higher productivity:
The government needs the support of the 1.2 million civil servants to implement its initiatives to strengthen the economy and revenue base. With stronger income, the government can provide a better deal for all citizens, including improved salaries for government servants.
"Their wages will be adjusted as we go along, provided productivity goes up. What is important is that the economy gets stronger, and government revenue gets stronger."
>> Malaysia to remain conducive investment destination:
The country will be more responsive to the needs of foreign and domestic investors given the stiff competition in the international marketplace.
"We realise that the economic environment has changed. There are many more new emerging economies offering very attractive and considerably much lower labour cost than we can and some of them are quite substantially large markets.
“The world today is different than what it was in the 80s and Malaysia needs to compete with many more countries. We will be able to attract our share of FDIs this year and next year."
>> Effective delivery system:
Emphasis on a more efficient public sector delivery system in implementing the RM67 billion stimulus package is crucial in lifting the economy quickly out of the doldrums after it was severely affected by the global recession last year.
“The hundreds and thousands of projects, big and small, being implemented under the stimulus package and delivered to the ground helped to turn the economy around in such a short period. It is a very clear manifestation of the success of the government’s administration including civil servants who have been working hard to deliver the stimulus packages,"he said.
The public delivery system was enhanced with the setting up of the Project Management Unit under the Finance Ministry to ensure projects and programmes were executed efficiently to ensure maximum impact on the economy.
Malaysia’s Gross Domestic Product registered a positive growth of 4.5% in the last quarter of last year from a negative growth of 6.2% when the package was first unveiled in March 2009.
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