Bus companies made liable

The STAR 17 september 2007

By ROYCE CHEAH

PETALING JAYA: The poor track record of express buses has resulted in a major insurance company refusing to assume full liability for passenger deaths and property damage arising from accidents.

The Commercial Vehicle Licensing Board, in an immediate reaction, said the move was unfair to bus companies.

Kurnia Insurans (M) Bhd has decided to make bus firms partly liable for passenger deaths or injuries, and property damage if their drivers fail to comply with an additional set of conditions which mostly concern road safety.

The company, which insures the bulk of express buses on the road, will require bus companies to pay up to RM5,000 for death or injuries, and RM10,000 for property damage claims if those conditions are not fulfilled.

Among the conditions are:

> Full compliance with permit provisions,

> Having Puspakom roadworthiness certificates,

> That drivers are not drug addicts and alcoholics,

> That drivers have valid licences and are free of traffic warrants, and

> That drivers are physically and mentally fit.

Kurnia Insurans chief executive office Kong Shu Yin said the conditions applied to express buses only.

“It is due to the very poor safety record of express buses lately,” he said.

Kong said passengers would not suffer from the system because Kurnia would pay their claims first and then recover the bus company’s portion of the liability from them later.

Pan Malaysian Bus Operators Association president Datuk Ashfar Ali said bus companies were now being held to ransom by such a requirement.

“It is a requirement by law to buy insurance, so now they (insurance companies) are taking advantage of that.

“It now becomes nonsensical to buy insurance. At the same time, we cannot pass the extra cost to the consumer because our fares are controlled,” he said.

As insurance coverage is mandatory, buses would have to be grounded if bus companies are unable to get coverage.

CVLB chairman Datuk Markiman Kobiran said the move was unfair because it imposed unnecessary conditions on bus companies.

“Right now, the industry is actually moving from bad to a better situation. It is not going from bad to worse. This is the wrong time to do this,” he said.

He said enforcement had weeded out most of the unscrupulous drivers and bus companies were very aware that they had to improve safety conditions.

He added that the insurance companies ought to be thanking the Government for reducing their exposure to risk instead of squeezing the bus companies further.

Road Safety Department director-general Datuk Suret Singh said the move would cause hardship to the bus companies.

“It should not be the stick alone. The carrot and stick method should be used. They should be working with the Government and industry to reduce their risk,” he said.