Consumers Association of Subang and Shah Alam, Selangor (Cassa) said many had been badly affected by the MCO, under which only essential services and several sectors recently granted exemption are allowed to operate.

Cassa president Jacob George said many workers had been laid off while companies are also struggling to stay afloat.

“They have had to lay off staff by giving them a few hundred ringgit as advance,” he told FMT.

“That is all they can afford. These workers are from different companies and are now seeking redress at the Labour Department.”

Companies themselves have been unable to pay their debts as many did not receive the goods ordered just before the MCO took effect, he added.

Even if they did, he said, the only items in demand at the moment are essential goods.

Adding that insurance companies have been making money from motor owners for years, he said it was now time for them to carry out “community service” by helping those in need.

He stressed that not all motor owners should be given discounts, only those who have been badly hit by the MCO.

“There are many company owners who are concerned over how to pay their staff and debtors. They don’t know what to do next.

“It is a serious matter,” he added.

He suggested that motor insurance companies create a formula for how much of a discount they could provide.

“We do not want motor insurance companies to go bust.

“They know how much reserves they have and how much of a discount they can give.”

In Malaysia, it is compulsory for car owners to buy insurance in order to renew their road tax.

General insurance companies are for the most part allowing three- month moratoriums on health and life premiums with full cover or protection.