PETALING JAYA: A vehicle gets involved in an accident, is written off as a total loss, and the owner receives compensation. Yet, the vehicle somehow finds its way back on the road.
These vehicles, declared by insurance companies as beyond economic repair (BER), are successfully registered with the Road Transport Department (JPJ) and sold to unwitting buyers, says Road Safety Council of Malaysia (RSCM) executive council member Datuk Suret Singh.
The problem arises because of a confusion between BER vehicles and actual total loss (ATL) vehicles, which are considered two different categories of wrecked vehicles.
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BER vehicles are not financially feasible for repair or restoration while ATL vehicles are those that have suffered damage compromising the structural integrity of the main chassis. These ATL vehicles cannot be repaired or restored and can only be scrapped.
Some BER vehicles may be procured cheaply by workshops which repair and sell them.
However, posts circulating on social media claim that vehicles declared ATL have been seen on the road.
An individual who made a check through the MyJPJ app, said the road tax for a vehicle, which had been declared ATL for the past 12 years, was showing as being active again.
JPJ has launched an investigation and crackdown on vehicles in recent weeks, following a corruption scandal involving vehicle inspection agency Puspakom.
Suret says BER vehicles have no business on the road and should be sent to junkyards where they can, at best, be cannibalised for parts.
“These cars are beyond economic repair. They should not be repaired, endorsed and allowed on the road. They should be scrapped.
“JPJ should endorse the vehicle as scrap in its registration card and disallow it from being restored. No party should try to defraud vehicle buyers by repairing and selling them,” he said.
The General Insurance Association of Malaysia (PIAM) said it supports JPJ’s initiative to enforce stringent checks on vehicles repaired after accidents, to ensure that only vehicles deemed safe and fit for road use are allowed back into service.
“It is crucial that vehicles declared BER are assessed and repaired appropriately with all necessary documentation including a roadworthiness certification from a credible vehicle inspection provider,” it said.
Puspakom was until recently the sole vehicle inspection provider.
PIAM also said vehicle owners should ensure their vehicles are adequately insured by considering options from insurers or returning to the original insurer that declared the vehicle BER.
Former president of Malaysian Road and Transportation Safety Association Nik Mohd Salim Nik Mohd Salleh said vehicles declared ATL should be sent to scrap yards and never allowed back on roads again as it involves body and chassis damage, which could put overall road safety at risk.
“ATL vehicles should be deregistered by JPJ to ensure they never make it back to the roads.
“As for BER vehicles, we need to determine an acceptable level (of damage) that can be considered for repairs, not just from economic point of view. The major consideration must be road safety.”
Road safety expert Prof Dr Law Teik Hua from Universiti Putra Malaysia said the the lack of clear-cut enforcement or varying interpretations of what constitutes “total loss” was a contributing factor to the problem.
He said there have been claims of ATL vehicles being repaired and allowed back on the road, often with Puspakom approval.
