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Tuesday 22 July 2008

Towing charges up by 50%

IPOH: Towing charges are up by between 25% and 50%, depending on location, with immediate effect. Federation of Automobile Workshop Owners Association of Malaysia president Cho Chee Seng, citing rising costs, said the recommended fees within city limits (or for the first 20km) were RM100 for daytime towing and RM150 for night towing. For towing on the highway, charges would be RM150 for the first 20km during the day, and RM200 at night. For every additional kilometre, the charge would be RM1 (day) and RM2 (night). Previously, tow truck drivers charged RM80 for daytime towing and RM110 for night towing within city limits, and RM100 and RM150, respectively, for towing on the highway. “The last time we revised our charges was 10 years ago,” Cho said, noting that the fees did not include toll charges and additional equipment needed to recover vehicles such as cranes. Cho said the federation’s members would also increase their labour charges from today, to RM45 per hour from RM25 before.

Source : The Star, 1 July 2008

Tuesday 8 July 2008

NO-FAULT LIABILITY: Low - income earners would feel the pinch

By : KANDIAH CHELLIAH, Klang

THE attorney-general said on Aug 26 last year that his office was undertaking a study to prepare a draft legislation for the no-fault liability (NFL) scheme to be implemented in Malaysia in due course.

The key benefits, the A-G elaborated, were that all victims would get compensation, regardless of who was at fault; payments would be prompt so that victims could get treatment; civil suits would be abolished by law; motor insurance companies would provide funds and only comprehensive insurance coverage would be allowed, with third-party insurance coverage to be abolished.

Under this scheme, both the negligent or reckless driver or rider of motor vehicles and the innocent driver/rider or their families would be compensated for their injuries or death and other loss and damages, such as medical bills, loss of earnings and other costs.

Under existing laws, only the innocent, i.e. not blame-worthy drivers/riders and their passengers/pillion if any, can successfully claim compensation from the negligent driver's /rider's insurers.

At present, the law allows for comprehensive cover and the minimum coverage known as third-party risk cover. The first, with a higher premium, covers one's own vehicle as well as compensation for injuries, death or losses to other road users that one negligently causes.

Third-party cover costs less but only compensates other road users that one negligently injures or cause death or damage to.

The point to note is that third-party insurance coverage for motor vehicles will be abolished. Third-party coverage costs only about 30 per cent of what the comprehensive type costs.

Vehicle owners at present have a choice, but not with the new scheme.This would burden low-income earners, rural residents, students and others who use motorcycles, vans, pick-up lorries or traders using vans for their business.

Between 40 and 45 per cent of road users are motorcyclists, and they pay RM50 to RM80 for third-party cover annually. This category of consumers will be hard-hit by the NFL scheme.