With so many stretches of the Klang Valley converted into construction sites for highway projects, motorists plying these routes are rightly concerned for their safety.

Recently, a prime-mover driver crashed his cargo into an overhead scaffolding along the SUKE highway. The structure collapsed on a van beneath, killing two people and seriously injuring three others.

The operator of the prime mover was reported to have tested positive for methamphetamines.

Since he was Driving under the Influence (DUI), his insurer has the right to reject any of the driver’s third-party claims and deny liability.

Beyond the personal tragedy, the deaths of those involved in the accident is an economic disaster for their respective families, especially if they are in the B40 bracket.

Well, even though Malaysia’s motor insurance industry is backward, it’s not heartless.

According to industry sources, the authorities including Bank Negara Malaysia (BNM) issued a directive that insurers should not dodge their moral responsibility in cases involving third-party bodily injuries and deaths.

What an industry expert says

A former senior insurance manager of a leading general insurance company said that while Malaysian laws on denial of liability if drivers are found to be in breach due to drugs, for example, are still backward, there are many lawyers willing to sue the lorry operator and/or the transport contractor for negligence.

“Insurance companies are morally bound to attend to third-party bodily claims favourably and seek recourse against the insured company subsequently,” he said, confirming that the country’s laws on such cases were weak and did not guarantee the injured party clear recourse.

“Our laws must be reviewed to compel insurance companies to respond to third-party bodily injury and death claims, as the companies have the financial ability.

“By the strict interpretation of the law, they can choose to deny liability but I don’t think any insurance company in Malaysia will snub BNM.”

He added that this would however force insurance companies to sort out the recovery process with the insured party.

He also said the country’s laws should be amended to bring business operators to greater accountability and scope of responsibilities, adding, “This would force business operators and insurers to create products with a wider coverage of liabilities.

“But we cannot follow wholesale the way of Western economies due to their high litigation environment as this would make the cost of business very high.”

In the meantime, everybody is awaiting the response from Persatuan Insurans Am Malaysia (PIAM).

Haddon’s Matrix

Now, back to the issue of the crash. Could it have been avoided as premised under Haddon’s Matrix?

Dr William Haddon, one of the first supporters of air-bags in cars, developed a matrix of factors and design under which road trauma injuries and deaths can be avoided.

Published in 1970, Haddon’s Matrix looks at factors related to personal attributes, machine attributes and environmental attributes; before, during and after an injury or death.

From what was reported, this fatal crash was one of being in the wrong place at the wrong time.

Or was it?

There is the Road Traffic Act and regulations governing the road transport of oversized and over-height cargo.

Previously, there was a regulation for a pilot car to lead the way for a transporter of oversized cargo but this was waived after an appeal by the Pan Malaysia Lorry Owners’ Association.

According to Haddon’s Matrix, these deaths could have been avoided if the employer of the transport company had ensured that its employee or contractor was fit to pilot such a heavy cargo.

The cargo’s height had presumably been measured and the route cleared many days before the ill-fated journey.

Did the driver take a shortcut or had the superstructure been altered in the days after the route survey?

On another note, the motor insurance industry is backward in the context that although Malaysia is de-tariffed, BNM still controls the premiums so that costs are minimised for consumers.

In keeping costs low, motorists and road users are not as well covered as they can be if insurance companies were allowed to compete and charge premiums based on usage and the risk profiles of drivers and transport operators.

BNM had in fact embarked on a phased de-regulation of motor insurance over four years from 2016 leading to full liberalisation but this was placed on the back-burner even before the onset of the Covid-19 pandemic in March last year.

Full deregulation versus state regulation

Full deregulation of the motor insurance industry has been widely studied to be better than being under state regulation. Therefore this full deregulation should be accelerated.

In an almost 20-year-old study presented by Robert E Litan of the Washington-based Brookings Institution, auto insurance is not characterised by monopoly.

“The bottom line of all this analysis is very simple to state. Auto insurance is a competitive industry,” said Litan.

“…Nor is the product so complicated that it requires government to set rates to protect consumers. Indeed, because it is what I would call a ‘plain vanilla’ financial product — in large part because insurance policies have been standardised through forms regulation — consumers are easily able to use the Internet to shop for auto (and other types of) insurance.

“In facilitating price comparisons, the Net is making and will continue to make auto insurance — and the financial services industry more broadly —even more competitive.

“In short, from an economic perspective, there is no basis for regulating rates,” he said in his 2001 report for a US Congressional sub-committee.

What you can do

So dear reader, count how many overhead highway construction projects you drive under on your daily route. If you feel under threat, re-route and seek the guidance of Waze. That’s one application of Haddon’s Matrix.

From Kota Damansara heading to northern KL, you can use the PLUS highway. But that means taking the underpass at the DASH construction zone. Or you can use the Tropicana road which is further but free of thousands of tonnes of concrete and steel beams being laid overhead.

The choice is yours.

The views expressed are those of the writer and do not necessarily reflect those of FMT.