MALAYSIAN BUS FIRMS NOT HAPPY WITH NEW INSURANCE RULES

Private bus operators in Malaysia have expressed concern that some of their fleets will not have their insurance renewed because they do not comply with new guidelines set by local insurers. The Malacca Bus Operators’ Association (MBOA) said that the new rules imposed from September 1 had seriously impacted the company’s profit potential. MBOA chairman Razali Endun said that “there are 34 new rules made by all insurance companies, and one of the requirements was for a bus company to set aside a 5,000 ringgit ($1,473) deposit for each passenger in case of an accident”. Mr Razali said that the new rules could force many bus operators to shut down. Speaking to reporters after a meeting with 12 other bus operators, Mr Razali said he suspected that one reason for the new rules was the high number of fatal accidents that had occurred in Malaysia recently. He urged that the entire industry not be penalised, at great inconvenience to consumers, just because of a few careless bus drivers.