No tow truck strike, insurers raise rates 


Cost pressure: Md Yusof says the temporary rate adjustments by insurance companies would help tow truck operators tide over the current oil price crisis, although long-standing concerns over operating costs persist. — FAIHAN GHANI/The Star

PETALING JAYA: Finally, all that talk about a tow truck strike turned out to be – just talk.

Operators say they had never planned a strike to protest high operating costs.

Instead, they say it was a rumour, probably spread by those intending to give tow trucks a negative image.

However, just two days ahead of the planned “three-day strike” earlier this week, two major insurance companies agreed to increase interim rates for appoin­ted tow truck operators by between 30% and 60%, to cope with rising diesel costs.

Tow truck associations said they were always willing to go through the right channels to get diesel subsidies.

“Tow trucks should be included in the list of essential services under the subsidised diesel control schemes (SKDS) 2.0,” said 1Malaysia Tow Truck and Car Carriers Association (1MTTCC) president Md Yusof Yahya.

The list, maintained by the Domestic Trade and Cost of Living Ministry (KPDN), does not include tow trucks and the ministry said adding categories is the prerogative of the Finance Ministry.

“Any request or appeal from tow truck industry players requires support from a regulatory agency,” said a top KPDN source.

“In the case of tow trucks, it would be the Road Transport Department and Land Public Transport Agency,” he said.

Md Yusof said the association had submitted a memorandum to KPDN to classify tow truck services as essential services two years ago.

“We have never heard from the ministry since,” he said.

He said the temporary rate adjustments by insurance companies would help tow truck operators to tide over the current oil price crisis, but long-standing concerns over operating costs persist.

“We need higher rates. Independent tow truckers are not badly affected, as they can command their own prices and only take on jobs if rates are agreed upon. We have to abide by fixed prices while operating costs have tripled,” he said.

Tamilan Tow Truck Association of Malaysia president M. Mathevaanan echoed calls for tow truck services to be recognised as essential services.

“People think tow truckers earn good money, but it is far from the truth. Apart from high fuel prices, we also bear maintenance costs.

“A few bad apples have given the industry a bad name by overcharging,” he said.

Mathevaanan also said his members had steered clear of any strike while two insu­rance companies had also agreed to raise wages.

Muslim General Takaful Agents Association president Datuk Khairi Anuar Ahmad said current tow truck rates no longer reflect actual operating costs.

“The failure to revise rates is affecting tow truckers. This has led to delays in assistance, service disruptions and increased safety risks to customers,” he said.

Khairi also called on the government to immediately improve the diesel subsidy mechanism.

Meanwhile, the General Insu­rance Asso­ciation of Malaysia (PIAM) said insurers have implemented immediate measures to support motor policyholders amid concerns over potential towing disruptions.

PIAM said the industry is closely monitoring rising operational costs and external pressures affecting tow truck operators.

It said among the measures taken inclu­ded prioritising emergency dispatch for stranded motorists. PIAM also advised policyholders to verify coverage before engaging independent tow truck operators.

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