Malaysia considers ending the vehicle insurance exemption for Thai cars entering within 2km of border checkpoints to boost road user protection.
KUALA LUMPUR: The government is reviewing the need to abolish the vehicle insurance exemption for Thai vehicles entering Malaysia within a two-kilometre radius of certain land border checkpoints to strengthen protection for local road users.
Deputy Transport Minister Datuk Hasbi Habibollah said the move is in line with actions taken by the Thai government, which now makes insurance compulsory for all Malaysian vehicles entering the country, even for distances of less than two kilometres.
The exemption was established based on the principle of reciprocity that has been practised since 1994 between Malaysia and Thailand. The government takes note that current circumstances require this policy to be reviewed.
“Issues regarding road accidents involving foreign vehicles, difficulties in third-party claims, enforcement challenges, and the need for more comprehensive protection for Malaysians are among the matters being looked into by the ministry,” he said during the Dewan Rakyat Special Chamber session today.
He was replying to a question from Rushdan Rusmi (PN-Padang Besar) who raised the issue of the lack of compulsory insurance for Thai vehicles entering Malaysia.
Hasbi said the government is also studying the best model to expand the implementation of the Road Charge and Foreign Vehicle Entry Record (RCVEP) system, currently implemented at the Johor-Singapore border, to eight border checkpoints in the northern region.
He said through the implementation of the system later, the insurance exemption for Thai vehicles entering the border area could be removed and the entry of foreign vehicles could be recorded more systematically.
“The proposal for temporary insurance or third-party coverage for foreign vehicles could also be examined as part of the implementation mechanism, subject to a reasonable overall system cost, verification methods at entry points, and coordination with relevant agencies,” he said.
Apart from strengthening the RCVEP system, he said other measures being studied include enhancing cooperation between the Road Transport Department (JPJ), security agencies, and border entry point agencies, as well as reviewing third-party claim mechanisms so that accident victims do not bear the losses themselves.
He added that the ministry is also holding consultations with the insurance industry regarding the proposed acceptance of Thai insurance for use in Malaysia and Malaysian insurance that can be applied in Thailand.
