The government is reviewing the need to abolish the current insurance exemption for vehicles from Thailand entering Malaysia within a two-kilometre radius of selected land border checkpoints, as part of efforts to strengthen protection for local road users.
Deputy Transport Minister Datuk Hasbi Habibollah said the move aligns with Thailand’s current policy, which requires Malaysian vehicles entering its territory to carry insurance coverage even for short-distance cross-border travel.
“The exemption was introduced based on the principle of reciprocity practised since 1994 between Malaysia and Thailand. The government takes note that current circumstances require this policy to be reviewed,” he said in the Dewan Rakyat during a special chamber session on Wednesday (June 25).
He said issues involving road accidents with foreign vehicles, difficulties in third-party claims, enforcement challenges and the need for more comprehensive protection for Malaysians were among key concerns under review by the ministry.
Hasbi was responding to a question raised by Rushdan Rusmi (PN-Padang Besar) regarding the absence of mandatory insurance requirements for Thai vehicles entering Malaysia.
He added that the government is also studying the expansion of the Road Charge and Vehicle Entry Permit Record system (RCVEP), which is currently implemented at the Johor-Singapore border, to eight entry points in the northern region.
Through the expanded system, the insurance exemption for Thai vehicles entering these border areas could potentially be removed, while foreign vehicle entries would be recorded more systematically.
Hasbi said the ministry is also considering the introduction of temporary insurance or third-party coverage for foreign vehicles as part of the implementation framework, subject to cost considerations, verification mechanisms at entry points and coordination with relevant agencies.
He added that the ministry is strengthening cooperation between the Road Transport Department (JPJ), security agencies and border authorities, while also reviewing third-party claims mechanisms to ensure accident victims are not left to bear losses.
Discussions have also been held with the insurance industry regarding potential recognition of Thai insurance policies in Malaysia and Malaysian insurance coverage in Thailand.
