Government Plans Compensation Mechanism For Serious Road Accident Victims

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The government is preparing amendments to the Road Transport Act 1987 that would allow courts to order compensation for victims of serious road crashes, placing greater responsibility on motorists convicted of dangerous driving offences.

Transport Minister Anthony Loke said the Cabinet had agreed in principle to the proposal during its meeting on Wednesday, with further discussions involving relevant stakeholders to be held before the amendment Bill is tabled in Parliament.

He said the proposed changes would introduce a new legal mechanism allowing compensation orders to be made during criminal proceedings, while also strengthening the Road Safety Demerit Points System (Kejara).

According to Loke, the move aims to ensure offenders are held accountable not only through existing punishments such as imprisonment, fines or driving licence suspension, but also for the consequences suffered by victims and their families.

“The Cabinet has agreed in principle to amend the Road Transport Act to create a compensation mechanism for road crash victims and enhance the Kejara system,” he said during a press conference at the Transport Ministry.

Loke said the compensation mechanism would apply to serious offences involving dangerous or reckless driving, including cases involving motorists driving under the influence of alcohol or drugs.

He explained that compensation amounts would not be predetermined by the government, but would instead be decided by the courts based on the circumstances of each case.

Among the factors to be considered are the severity of the offence, injuries suffered, loss of life, financial losses faced by victims or their families, as well as the offender’s ability to make payment.

Loke stressed that the proposed system would not remove victims’ existing rights to make insurance claims or pursue civil action, but would provide another option for families seeking justice without going through lengthy legal proceedings.

He said many victims currently face difficulties pursuing compensation due to the cost and time involved in filing separate civil lawsuits, adding that the government wanted to include compensation as part of the criminal justice process.

The minister said the proposal had received support from Cabinet members, including Prime Minister Datuk Seri Anwar Ibrahim, although the legal framework and implementation details still needed to be finalised.

The Transport Ministry will begin engagement sessions with government agencies, enforcement authorities, the judiciary, insurance sector and other stakeholders before completing the amendments.

Loke said the government aims to table the Bill during the final parliamentary sitting of the year after the Budget debate, provided preparations are completed.

However, he stressed that the ministry would not rush the process as the reform would have long-term effects on Malaysia’s legal and road safety framework.

He also suggested that the Bill be referred to a Parliamentary Special Select Committee after its first and second readings to allow further review and feedback from lawmakers and stakeholders.

Besides the compensation proposal, Loke said improvements would also be made to the Kejara system, including clearer notification procedures, appeal mechanisms and reviews for cases where offences are not proven or convictions are overturned.

He clarified that compensation would serve as an additional penalty rather than replacing existing punishments, with imprisonment, fines and licence suspension continuing to apply where required.

The minister added that the amendments would only apply to offences committed after the law comes into force, as criminal laws cannot be applied retrospectively.

Issues involving offenders who may be unable to pay compensation will also be studied during the drafting process to ensure the mechanism is practical and fair.

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