A reader of this blog very recently wrote in lamenting he had to fork out some RM700 for renewal of his road tax and 3rd party insurance.

He further informed us that he owns a 10 year old vehicle. The reader also told us that he only paid some RM500 for the above 2 things last year. A year’s road tax comes to around less than RM100. That’s means insurance charged for the above 10 year’s old vehicle come to about RM600!

Readers can think for yourselves how insurance companies are holding the public to ransom currently. According to the Deputy Finance Minister, Senator Datuk Dr. Awang Adek, told Parliament that the government and Bank Negara is still in the process of deciding on a suitable mechanism to provide protection against 3rd party motor vehicle injuries and deaths (TPID) at a reasonable premium.

Dr. Awang continued, the government is aware of the difficulties faced by some vehicle owners in securing motor insurance protection, especially by vehicles which are more than 10 years old.

Discussion were held as early as April 2010 with a number of interested parties including members of the public and the feedback will be taken into consideration when framing the mechanism of payment, the Minister told Y.B. Amran Abdul Ghani of the PKR Tanah Merah.

Datuk Dr. Awang, further told the House that according to statistics obtained by the insurance services of Malaysia, the frequency of claims for vehicles more than 10 years old was lower than the frequency of claims which were made by vehicles which were less than 10 years. However, the average claims for vehicles more than 10 years are higher though.

For example, in 2009, 3rd party policy average policy claims for motorcycles more than 10 years old come to about RM15,338 compared to RM13,763 for motorcycles which were less than 10 years.

However, the Deputy Finance Minister said, vehicle owners who found difficulties in securing protection for their vehicles could get it from the Malaysian Motor Insurance Pool which was available through 11 Uni-Asia General Insurance Berhad branches or 684 Pos Malaysia branches which are available all throughout the country.

Well, in view of the above information provided by the Deputy Finance Minister, I guess the public cannot complain anymore that the government has not done anything to assist the public.

The public, on the other hand has to be patient and wait for the new 3rd party insurance scheme to be announced very soon in the beginning of the new year in 2011.

What is suggested that readers of this blog bear with is some inconvenience for the time being and pay a higher insurance and road tax for your 10 year old or older vehicles. There is actually nothing much that one can do.