ROAD TRAFFIC (AMENDMENT) BILL

Order for Second Reading read.

3.44 p.m.

The Minister of State for Communications (Dr Ang Kok Peng): Mr Speaker, Sir, I beg to move, "That the Bill he now read a Second time."

The main object or this Bill is to provide for a motor insurance policy to cover the full period for which a licence (road tax) is granted to a vehicle. At present a vehicle owner needs only to possess a valid insurance policy on the date when the licence comes into operation. This can result in the insurance policy expiring before the vehicle licence, giving rise to a situation whereby a vehicle though properly licensed is without a valid insurance cover. This can go undetected during the period of the licence unless the vehicle is involved in an accident. The new requirement would therefore remove the existing anomaly in respect of the insurance cover for motor vehicles.

Another object of the Bill is to give the Registrar of Vehicles additional powers to cancel the registration of motor vehicles whose licences have not been renewed for more than three years, or when the vehicles have been destroyed, permanently exported, or have become totally unfit, or have exceeded the age limit prescribed for that class or description of vehicle. The present Act has no provision empowering the ROV to de-register vehicles whose owners have failed to renew the licences over a long period of time. As a result there are many "dead" vehicles on the register. The proposed amendment will minimise the number of "dead" vehicles that are maintained on the register.

Clause 2 of the Bill seeks to increase the late payment fees for renewals made after expiry of the vehicle licence (road tax). At present a late payment notice fee of 50 cents is charged for renewals made after 10 days of expiry of the licence. A further fee of $5, known as warrant fee, is levied for renewals made after 20 days of expiry of the vehicle licence. This is far from satisfactory and has not been effective in getting vehicle owners to renew their licences promptly. In conjunction with the new scale of road taxes, it is proposed to raise the late payment fee. The new rate for late payment fees would take into account the graduated scale of road taxes and would range from 510 to $50 depending on the class and description of vehicles. For private vehicles, the rate of late payment fees would be determined by the engine capacity. These late payment fees would he levied for renewals made after 14 days to a month of expiry of licence. Renewals made after one month of expiry of licence may be compounded, provided the late payment fees are paid in addition.

Clause 6 of the Bill seeks to introduce a new category of public service buses to be called Private Hire Buses. This is to augment the existing public transport service to help meet the demands of office and factory workers, especially those on night shifts. Such buses will be allowed to be hired out on charter or on contract.

Sir, I beg to move.

Question proposed.

3.46 p.m.

Mr Hwang Soo Jin (Jalan Kayu): Mr Speaker, Sir, I remember that during the last Parliament sitting the plight of some road accident victims who were not able to recover compensation, because of the absence of insurance or defective insurance, was brought to the attention of the House by the Member for Tiong Bahru. I must say, therefore, that the proposed amendment Bill is welcomed.

But I am just wondering whether the Minister considers it time now to go a step further by setting up a central fund contributed by all motor insurers, so that any claims not paid because of technical reasons can be covered by that fund. It will not cost the Government anything, because the insurers will have to cough out the money.

Dr Ang Kok Peng: Sir, the Member for Jalan Kayu has brought up a very good suggestion, and we shall give it due consideration.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into, a Committee on the Bill.-[Dr Ang Kok Peng].

Bill considered in Committee.

[Mr Speaker in the Chair]

3.47 p.m.

Clause 1--

The Chairman: There is a note, in page 1, line 4, to leave out "1972" and insert "1973". This will be done.

Clause 1 ordered to stand part of the Bill.

Clauses 2 to 6 inclusive ordered to stand part of the Bill.

Bill reported without amendment; read a Third time and passed.