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General Department Of Logistics

Secretariat of National Logistics Steering Committee

Cross-Border Insurance System Development Project (P53-M1)

The project aims to enhance border-less transportation by developing the insurance framework for cross-border vehicles through the implementation of motor third party liability policy and cross border motor vehicles insurance systems.

This project has been implemented by the General Department of Land Transport (GDLT). Overall, the project will have the following economic benefits:

  1. Availability of cross-border motor vehicle insurances

  2. Optimized premium for third party insurance through the “pooled” cross-border motor vehicle insurance system

  3. Accelerated implementation and increase of borderless transportation

  4. In the long term, with the increase in borderless transportation, cheaper and faster transport options will be available, allowing the industries to strategically utilize the cross-transport vehicles.

This project also encounters some challenges; for instance, the spread of Covid-19 pandemic hinders the cross-border transportation which is an obstacle for the implementation of the cross-border motor vehicle insurance system. In response to this issue, the working group also proposed FORTE to continue to work with ASEAN to link the system and preparation of the necessary standards in order to ensure the effectiveness of implementation.