The Consumers Association Of Subang and Shah Alam, Selangor (Cassa) records its thanks to Prime Minister Najib Abdul Razak for his timely advice to Bank Negara Malaysia to take into consideration the plight of the people when proposing new basic motor insurance coverage for third-party bodily injury and death.

Najib 's advice to the central bank to specifically consult consumer groups, associations and the public to iron out disagreements before committing to the new policy known as the Third-Party Bodily Injury and Death (TPBID) should be fast-tracked before more damage in done to the image of the government because of the omissions of the former.

Cassa - in opposing the scheme from the onset - has received strong support from all members of Parliament, the Bar Council, civil society members and trade union groups.

We are saddened that the entire process of the said scheme was shrouded in mystery and was a clandestine move where consultations were only initiated with the insurance industry and specific private interests.

Cassa was dismayed that the said TPBID seemed to be rushed through without consultation and this does not inspire confidence especially when a new company to manage the scheme has been proposed with a speculated costs of over RM500 million which would have radically changed the face of insurance and consumer protection in the country for the benefit of the poor and vulnerable groups.

Looked upon in totality - the central bank move certainly went against the spirit of ‘1Malaysia’ and the Najib administration's agenda of close consultation, accountability, good governance, transparency and putting the consumers first.

The central bank's attempted agenda to limit third-party motor insurance claims to RM100,000, inclusive of hospitalisation, rehabilitation, pain, suffering, loss of income and future earnings was certainly foolish and stupid and was a move that would have had affected and put millions of ordinary people at risk of road accidents and spearhead a backlash against the federal administration.

We are grateful that Najib has taken a personal interest in advising Bank Negara to engage and consult the consumer groups and other stakeholders and not just the insurance industry on this vital matter.

With this intervention, Cassa hopes the central bank will take cognisance of Najib's instruction and initiate what protects the rights and interests of Malaysian consumers.

The writer is president, Cassa.