OFFENDERS convicted of causing road accidents may face an additional penalty requiring them to compensate victims or their families under proposed amendments to the Road Transport Act 1987 (Act 333), following in-principle approval by the Cabinet.
Transport Minister Anthony Loke said the proposed compensation mechanism would complement existing punishments such as imprisonment, fines and driving disqualification, while ensuring offenders are held accountable for the consequences of their actions.
He said the measure was aimed at providing greater protection for road accident victims and their families, particularly in cases involving serious offences such as driving under the influence of alcohol or drugs, reckless driving and other violations resulting in injury or death.
“Currently, offenders are only subject to imprisonment or fines, but there is no element of compensation for the families of victims.
“What we want to establish is a new mechanism in our legal system where the court can also order those found guilty to pay compensation to the victims or their families,” he said at a press conference.
Loke said the current system requires victims or their next of kin to seek compensation through civil lawsuits, which often involve legal costs and can take years to resolve.
Under the proposed amendment, compensation orders would be incorporated into criminal proceedings, allowing courts to direct convicted offenders to make payments as part of their sentence.
However, Loke stressed that the compensation amount would not be automatically determined by the Government, but would instead be decided by the courts based on the circumstances and merits of each case.
Factors considered would include the severity of the offence, the extent of injuries or loss of life, financial losses suffered by victims or their families, and the offender’s ability to pay.
He added that the new mechanism would not affect victims’ existing rights to claim insurance compensation or pursue civil action through current legal channels.
“Because I believe this bill will have a major long-term impact, it will change the road transport legal system.
“The Ministry of Transport certainly wants to introduce measures that provide protection for road users and create positive long-term effects,” he said.
Loke said the ministry would begin engagement sessions with relevant ministries, agencies, stakeholders and the insurance industry to refine the implementation framework before the amendment bill is brought back to the Cabinet.
The proposed legislation is expected to be tabled in Parliament by the end of the year, with a Parliamentary Select Committee also expected to be established to review the bill in detail and gather views from various stakeholders before it is finalised. - July 17, 2026
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