New insurance coverage plan

WEALTH PROTECTION

BANK Negara Malaysia is in the early stage of drafting a basic motor insurance coverage for third party bodily injury and death (TPBID).

The central bank said it will engage with the relevant stakeholders including consumer, professional bodies, and trade and industry associations.

"This is part of the normal consultation process undertaken by Bank Negara for major initiatives," it said in a statement yesterday.

"Bank Negara has been working closely with the relevant authorities in formulating this new TPBID scheme," it added.

The scheme was first highlighted during the 2010 Budget announcement last September.

The government had said there was a need for such scheme at a reasonable premium that is commensurate with the level of protection provided.