Malaysia considers mandatory car insurance for private vehicles

The transport minister said it could affect insurance costs.

Malaysia’s Ministry of Transport said it will look into the implications of making car insurance mandatory for private vehicle drivers, reported news agency Bernama last week.

“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,” Transport Minister Anthony Loke Siew Fook stated.

Fook said that a thorough review by the ministry’s Land Division is necessary before making any policy decisions.

Fook noted that it could greatly impact vehicle owners' insurance costs and emphasized the need to balance these concerns. 

He also highlighted the importance of aligning any new policy with the Federal Court’s recent decision, which allows passengers traveling for work purposes to seek compensation from vehicle insurers for injuries sustained in accidents.