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

KUALA LUMPUR, Oct 28 — Families left bereft by reckless or drunk drivers may soon receive direct compensation through criminal courts, but the Malaysian government is still figuring out how to collect these payments when the offender lacks funds. Transport Minister is drafting changes to the Road Transport Act to create a statutory compensation system for victims and their legal heirs in fatal or severely injured road accidents, according to a parliamentary answer in the Dewan Rakyat.

The ministry favors judges' discretion over fixed payment limits. Judicial trial judges would order convicted drivers to pay compensation based on the case's specifics, including injury severity, economic loss to dependents, and the offender's financial situation. However, awarding compensation based on an offender's wealth poses a major enforcement challenge, as destitute or uninsured drivers may not be able to pay high orders.

The government is looking into recovery methods and the feasibility of collecting from offenders with limited assets. Legal experts warn that without a state-backed insolvency backing or integrated insurance method, restitution orders may be ineffective. For low-income families reliant on a single income, losing a breadwinner leaves them immediately destitute, and paper awards cannot replace lost earnings.

The ministry emphasizes that justice for crash victims should extend beyond imprisonment to address the economic hardship experienced by surviving dependents. Inter-agency talks with relevant ministries and legal experts are ongoing to finalize the compensation mechanism.