motor insurance.

The premium has remained the same since 1978. Fomca secretary-general Muhammad Sha'ani Abdullah said the lack of transparency on third-party insurance had contributed to the huge
losses suffered by the sector.

"The industry should also use comprehensive insurance to cross-subsidise third-party insurance." The industry recorded a RM1.6bil profit from comprehensive policies and RM970mil losses from third-party policies in 2008.

Some 3.54 million of the 10.8 million motor policies were thirdparty policies and the majority of the holders were motorcyclists.

Muhammad Sha'ani said the industry should bear the losses and not the Government. "The subsidy under the new scheme will become a burden to the Government as well as the people - as the Government's money is the people's money," he said.

Bank Negara said there was also a proposal that losses from the proposed scheme be shared by the Government and the industry.

The central bank said it would continue to accept public feedback on the new basic motor insurance after today's deadline.

The proposed basic motor cover framework discussion paper issued on April 23 can be accessed at www.bnm.gov.my. E-mail res-ponses may be sent to This e-mail address is being protected from spambots. You need JavaScript enabled to view it