Insurance plan for house buyers proposed
The Star 17/10/2003 By Zani Salleh

KUALA LUMPUR: The Government has proposed an insurance scheme to protect house buyers in case of abandoned projects or late delivery of their houses.

Deputy Minister in the Prime Minister’s Department Senator Datuk M. Kayveas said buyers were often left in the lurch and had to fend for themselves whenever there were problems involving developers handing over the properties on time.

He said there were many instances where buyers were made to pay their housing loans before they could even occupy their homes.

“With the insurance services, it would provide both house buyers and the developers a win-win situation.

“With insurance coverage, house buyers' financial commitments could be undertaken by the insurance company while a developer completes the construction and hands over the house,” he said after opening a national insurance agents convention at Crown Prince hotel here yesterday.

“It is the role of insurance in our every day life to minimise risk, and if it can be worked out, the financial burden of house buyers could be lightened,” he said.

On another matter, he urged the insurance industry to consider “no fault liability” and expedite compensation payment to accidents victims.

He said insurance services should be more meaningful if compensation could be paid once accidents occur, without having to prove which sides were at fault.

He said there was a woman who had to wait seven years to get a court verdict for the insurance claim on her husband's death in a bus accident, only to have the case thrown out because the bus driver could not be brought to court.