In­sur­ance cover for driv­ers aged 65 and above


SERI KEM­BAN­GAN: The move by the Malaysian Mo­tor In­sur­ance Pool (MMIP) to pro­vide cov­er­age for driv­ers above 65 years has come as a big relief to the trans­port in­dus­try and se­nior cit­i­zens.

Fol­low­ing com­plaints lodged by in­dus­try play­ers in Jan­uary, MMIP was in­structed by Bank Ne­gara Malaysia via Fi­nan­cial Me­di­a­tion Bureau (FMB) to amend a con­di­tion which had de­nied in­sur­ance cov­er­age for driv­ers above 65 years.

Since March 1, the new con­di­tion pro­vides cov­er­age for vet­eran driv­ers to op­er­ate com­mer­cial ve­hi­cles with an ex­cess of over RM5,000.

Pre­vi­ously, the MMIP’s pol­icy sched­ule spec­i­fied that, “only driv­ers whose ages are be­tween 21 and 65 years on the driver’s last birth­day shall be per­mit­ted to drive an in­sured ve­hi­cle.”

Un­der the lat­est clause of War­ranty W.4CV, it out­lined that: “War­ranted that if at a time of ac­ci­dent the driver of the ve­hi­cle is below 21 or over 65 years of age on the last birth­day, an ex­cess of RM5,000 over and above any ex­cess al­ready at­tach­ing to the pol­icy shall be borne by the in­sured for Own Dam­age/Third Party Prop­erty Dam­age/Third Party Bod­ily In­jury claim.

“How­ever, in the event that the Pool is re­quired by law to pay to third par­ties by virtue of the leg­is­la­tion or the agree­ment ex­e­cuted be­tween the Min­is­ter of Trans­port of the govern­ment of Malaysia and the Mo­tor In­surer’s Bureau of West Malaysia on 30th March 1992 or the Agree­ment ex­e­cuted be­tween the Min­is­ter of Fi­nance of the Repub­lic of Sin­ga­pore and Mo­tor In­sur­ers’ Bureau of Sin­ga­pore on 22nd Fe­bru­ary 1975, you shall re­pay us the ex­cess of RM5,000,” the clause states.

MMIP is one of the big­gest mo­tor in­sur­ance un­der­writ­ers in the coun­try rep­re­sent­ing 33 in­sur­ance com­pa­nies.

Its main aim is, “to pro­vide mo­tor in­sur­ance cov­er­age to ve­hi­cles which may be con­sid­ered ‘high risk’ or risks which will not be un­der­writ­ten by any sin­gle in­sur­ance com­pany”.

The mat­ter be­came an is­sue when a 73year-old lorry driver, Liew Kon Yew, was in­volved in a crash with an MPV two years ago and was sued by the other party for re­pair costs of about RM15,000.

Upon checks by Liew’s em­ployer, it was found that he was not cov­ered un­der MMIP pol­icy due to the age fac­tor and this news sent shock waves across the trans­port in­dus­try as there were many who are aged above 65 driv­ing buses, lor­ries, taxis and other trans­porta­tion ve­hi­cles.

Malaysia Heavy Con­struc­tion Equip­ment Own­ers As­so­ci­a­tion com­mer­cial af­fairs of­fi­cer Lam Kok Wai said the in­dus­try can now em­ploy driv­ers above 65 years with­out hav­ing to worry about cov­er­age.

Balakong Assem­bly­man Ed­die Ng Tien Chee said it was a good move.

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