Silva Velu said most owners of private passenger vehicles were unaware of the importance of getting such a policy as it was not required, unlike in Singapore.

Velu said the annual premium for this additional coverage was small and would spare vehicle owners from many problems should their passengers sue for injury or death.

“The annual premium is less than RM50 but many do not buy this additional policy as it is optional,” he told FMT in response to a recent Court of Appeal ruling.

He suggested the government make coverage for passengers a requirement when vehicle owners purchase insurance, as in Singapore.

Another lawyer, Jeyaseelen Anthony, said without such insurance coverage a driver or vehicle owner might have to stump out personally for damages for injured passengers.

“If the driver has limited financial resources, the damages won will remain a paper judgment,” he added.

On Aug 29, the Court of Appeal ruled that an injured car passenger seeking damages for accident injuries must prove that the claim is within the ambit of the vehicle’s motor insurance policy.

In the case before it, the court said the applicant, Chen Boon Kwee, must file a recovery action against Berjaya Sompo Insurance Bhd, meaning injured passengers cannot automatically enforce judgments against insurance companies.

Chen suffered injuries in an accident while travelling in his wife’s car, driven by a colleague. He filed a suit for negligence against the owner and driver, as well as the lorry driver and its owner.

A sessions court awarded him about RM200,000 in damages in November 2019 and found his colleague solely responsible for the accident.

However, Berjaya Sompo filed a separate action for a ruling that Chen must file a recovery suit to enforce the judgment.

The High Court allowed Berjaya Sompo’s application. Chen then filed an appeal which he lost.