The Ministry of Transport is looking into the implications of making car insurance for private car passengers compulsory as reported by Bernama. If such a policy is passed, it could increase the cost of insurance for car owners in Malaysia by quite a bit.

“We will ask the Land Division of the Ministry of Transport to look further into it and it will certainly have a big impact on the cost of insurance, so this needs to be looked into before any policy decisions are made,” said Transport Minister Anthony Loke.

“I am convinced that if we do something like that, they have to make sure there is a balance and in this matter, what is important is the decision of the Federal Court, we have to see if it has an obligation to amend our act,” he added.

Loke is referencing a recent decision by the Federal Court that vehicle insurers are liable to passengers injured on work travel if they were to be involved in an accident. In order to ensure compensation will be given in such situations, insurance coverage for passengers in private vehicles may be mandated by the government.