Putrajaya still working on loophole in planned road crash payouts: What if offenders have no money?

People are seen at the site of a fatal accident involving a drunk driver on Lebuhraya Sultan Iskandar in Kuala Lumpur on Oct 24, 2026. — PDRM pic

By Malay Mail

First Published: Wednesday, 28 Oct 2026 10:07 AM MYT

KUALA LUMPUR, Oct 28 — Bereaved families who lose a breadwinner to reckless or drunk drivers could soon secure direct compensation through criminal courts, but the federal government is still working out how awards will be collected if the convicted motorist possesses no financial means.

The Transport Ministry is preparing amendments to the Road Transport Act 1987 to establish a statutory compensation framework for victims and lawful heirs in road crashes resulting in death or grievous hurt, according to a written parliamentary reply tabled in the Dewan Rakyat.

Responding to a query from Setiu MP Shaharizukirnain Abd. Kadir, the ministry said that Putrajaya favours judicial discretion over fixed administrative payout caps.

Under the envisioned framework, criminal trial judges would order convicted motorists to pay restitution assessed on case merits, factoring in the severity of injuries, the tangible economic loss suffered by dependants, and the offender's financial standing.

However, tailoring compensation to an offender's personal wealth exposes a major enforcement loophole, as impoverished or unhedged drivers may be unable to settle substantial awards. The ministry acknowledged this structural hurdle, confirming that technical working groups are examining recovery mechanisms.

“The government is also examining the question of the offender’s ability to pay compensation, the method of payment, and enforcement of the order if the offender lacks sufficient assets or financial means.

“This is important to ensure that compensation orders are not only legally authorised but actually benefit victims and heirs,” the ministry said.

Without a state-backed insolvency guarantee or an integrated insurance recovery mechanism, legal experts note that restitution orders risk becoming hollow paper judgments.

For lower-income households that rely entirely on a single breadwinner, the sudden loss of an income earner delivers immediate financial destitution that paper awards cannot relieve.

The ministry stressed that justice for crash victims must extend beyond penal incarceration to address the economic fallout endured by surviving dependants.

It noted that inter-agency consultations with relevant ministries and legal stakeholders are ongoing to finalise the mechanism.