A study on the viability of implementing a no-fault liability system for motor vehicle accidents in Malaysia : issues and challenges

Abstract

Motor vehicle accidents have dominated tort law in the country where unfortunate injured victims seek relief from the courts for injuries and loss resulting from such accidents. However, the present adversarial tort compensation mechanism founded on the notion of fault has been fraught with deficiencies causing injured claimants financial hardships, emotional distress and social injustices. In believing that the traditional tort system was never designed or contemplated to address the contemporary issues facing such victims, a number of mature common law jurisdictions have taken the bold decision to depart from this system in search of an alternative, fairer and better compensatory model. Focusing on the injuries and rehabilitation of the injured rather than on culpability, modern compensation models that developed were based on statutory no-fault principles and have adopted as their guiding philosophy, community responsibility, social justice and public benefit. The research is an attempt to investigate into the manifested weaknesses observed with the present tort compensation system for road accident victims and conducts a comparative and evaluative study on the alternative no-fault arrangements operating particularly in countries such as New Zealand and Australia. It further takes a look at the existing compensation models for industrial injuries in Malaysia which have incorporated no-fault principles and provides a critical analysis of amendments to the Civil Law Act 1956 which has made significant intrusions into the exercise judicial discretion. The research then concludes that it is fitting for the present unsatisfactory state of the law to be reformed and hence recommends the enactment of a new motor vehicle compensation Act that would create a hybrid compensation scheme premised on no-fault principles but which allow restricted access to common law damages. It would be aimed at providing guaranteed and comprehensive benefits to all persons injured as a result of road accidents in an expeditious and equitable manner at reasonable costs.