Malaysia Cabinet approves plan for accident victim compensation, stronger demerit points system

Malaysia's Cabinet has given its in-principle approval to a significant legal amendment aimed at creating a compensation mechanism for road accident victims. The proposal, agreed upon on July 15, seeks to ensure that individuals who cause road accidents are not only subjected to penalties like imprisonment or fines but are also held financially responsible for the consequences faced by victims and their families.

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The move is aimed at ensuring that offenders are not only punished through imprisonment, fines or disqualification from driving, but are also held responsible for the impact of their actions on victims and their families.

The Transport Ministry stated on July 17 that the new mechanism will allow courts to determine compensation amounts based on the specifics of each case. Factors such as the severity of the offense, the extent of injuries or loss of life, the demonstrable losses incurred, and the offender's financial capacity will be considered. Crucially, the ministry emphasized that this new system will not preclude victims or their families from pursuing existing avenues for insurance claims or civil action.

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Under the proposal, the amount of compensation will not be fixed administratively by the government, but determined by the courts based on the facts and merits of each case, including the seriousness of the offence, injury or loss of life, the losses suffered and the offender’s ability to pay.

Alongside the compensation initiative, Malaysia will also bolster its Road Offence Demerit Points (Kejara) System. This move is intended to serve as a preventive measure, enabling better identification and control of drivers with a history of high-risk behavior and repeat offenses. Proposed enhancements include clearer notification procedures for demerit points, a mechanism for representation and administrative review, and provisions for adjusting or removing points if an offense is not proven or leads to no conviction.

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The ministry stressed that this mechanism will not affect the right of victims or their heirs to pursue insurance claims or civil action through existing legal channels.

The ministry views these proposed changes as vital steps toward enhancing justice, accountability, and overall safety on Malaysian roads. The commitment is to develop a legal framework that not only protects victims and their dependents but also ensures offenders face appropriate consequences and helps prevent future road offenses. Following the Cabinet's approval, the ministry will proceed with drafting the necessary amendments, which will undergo thorough review before being presented to Parliament.

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The proposed compensation for road accident victims and the strengthening of the Kejara system are important steps toward strengthening justice, accountability and safety on the roads.