Putrajaya still working on loophole in planned road crash payouts: What if offenders have no money?

KUALA LUMPUR, Oct 28 — Families who lose a primary earner in fatal or severe road accidents may soon receive direct compensation from criminal courts, but the Malaysian federal government is still figuring out how to collect funds when the culprit lacks financial resources. The Transport Ministry is drafting changes to the Road Transport Act 1987 to create a legal compensation system for crash victims and their surviving relatives, according to a parliamentary reply.

Responding to a question from MP Shaharizukirnain Abd. Kadir of Setiu, the ministry stated that the government prefers judicial discretion over predetermined payout limits. If convicted, drivers would be ordered to pay restitution based on the case's specifics, considering injury severity, the economic loss to dependents, and the offender's financial condition.

However, this approach poses a significant enforcement issue, as impoverished or financially unstable drivers might be unable to pay substantial compensation. The ministry admitted this challenge and said that technical working groups are looking into recovery methods. "The government is also exploring the offender's ability to pay, the payment method, and enforcement if the offender lacks sufficient assets or means.

Ensuring that compensation orders are legally authorized and genuinely help victims and heirs is crucial," the ministry explained. Without government-backed insolvency guarantees or integrated insurance recovery systems, legal experts warn that restitution orders may be ineffective. For low-income households that depend entirely on a single income earner, the loss of that breadwinner can lead to immediate financial ruin, which paper awards cannot reverse.

The ministry emphasized that justice for crash victims should encompass more than just imprisonment, addressing the economic impact on surviving dependents. They noted that ongoing inter-agency consultations with relevant ministries and legal experts aim to finalize the mechanism.