CAP congratulates the Attorney-General Tan Sri Abdul Gani Patail for proposing that the no-fault liability scheme be implemented.
Such a scheme is long overdue. We had as far back as the late 1970s and in the early 1990s, called for the introduction of some kind of no-fault motor insurance to benefit consumers. The idea behind no-fault insurance is to get accident victims compensated as quickly as possible.
According to the Bank Negara’s Annual Report 2010, Malaysia’s household debt at end of 2010 was RM 581 billion or 76% of GDP (Gross Domestic Product). The Bank claimed that the household debt is still manageable because of income growth, high levels of savings and favourable employment opportunities.
However, if we look at household debt from the point of disposable income then the picture painted is worrisome because it reveals that households are spending about half of their income to pay off their debts.
One of the problems with the critical illness policy is that it is being sold by agents who give policyholders the wrong impression that the coverage is wider than it really is. (A critical illness policy is one that pays out a lump sum upon confirmation that the policyholder has been diagnosed with one of the illnesses or conditions covered under the policy)
For example, the agent assures the policyholder that cancer is one of the critical illness covered but does not explain that it has to be the “right “cancer.
Bank Negara should not loosen its new car loan guidelines as suggested by the Proton Edar Dealers Association of Malaysia (Pedar).
According to news reports, Peda claims that members’ income have been affected because with the new guidelines, only 30% of the potential car buyers have managed to secure hire-purchase loans.
However there are good reasons why the guidelines are needed and must continue to be implemented.
Malaysia urgently needs a Tenancy Act (TA) which will offer protection to both landlords and tenants. A Tribunal should also be set up under the TA to settle disputes between both parties.
Tenants often complain about landlords that raise rents indiscriminately and impose unreasonable conditions. On the other hand landlords complain about bad tenants that do not pay rents and the difficulty of getting rid of them.