The “law of the jungle” that now reigns on Malta’s roads is down to utter lack of enforcement, according to insurance firms, which are insisting on the setting up of a single road safety authority to bring to end the free-for-all environment.
Malta Insurance Association president Anthony Cauchi“Enforcement should not be taken to mean a police state or big brother watching but it does not mean a free-for-all either,” Malta Insurance Association (MIA) president Anthony Cauchi told Times of Malta in an interview.
He said there were three entities “meant to enforce the laws on our roads” – the police, the Law Enforcement Services Agency and Transport Malta.
“Does this make sense? Should we consider better use of resources and consolidate? The MIA has advocated the setting up of a single, road safety authority in Malta and believes that this idea should be considered seriously,” he said.
He said the association was not alone in raising concerns about lack of enforcement.
“We are worried about this because it is very clear that enforcement leaves much to be desired. We have several cameras on our roads and we are told to expect many more.
“Is anything tangible derived from the investment in such cameras? We don’t need more regulations or laws, what we need is to enforce what is already in place,” he said.
Insurers are also worried about the lack of enforcement in the construction industry.
They provide cover for damage to the property of others caused by accidents occurring during construction.
They also provide compensation for fatalities or injuries incurred by construction workers in such instances.
“With proper enforcement, workplace accidents can potentially reduce,” he said.
“The Building and Construction Authority clearly needs a lot more resources to be able to effectively enforce the rules but any money invested in this will surely be a lot less than the money being spent because of the accidents that continue to happen,” Cauchi added.
In the case of traffic accidents, the latest figures show the number is again rising and what is more worrying to insurers is the increase in road fatalities and serious injuries.
Insurers who handle serious injury claims all report that many of such accidents could have been avoided as the driver was either probably under the influence of alcohol or drugs or blatantly ignoring traffic regulations, for instance, by going too fast.
Cauchi said the MIA has been lobbying for many years with the authorities proposing changes to the law that would make it easier for the police to tackle the problem of drink driving.
“Unfortunately, these changes have never appeared to be high on the government’s agenda.
“The situation with drug driving is even worse as the legislation we have is inadequate and, despite proposals made by various entities, including the President’s Foundation for the Well-being of Society, which carried out a very detailed study, nothing has been done,” he said.
Cannabis use aggravates problem
Cauchi said the recent liberalisation of the use of cannabis aggravated the problem of drug driving because the police are not equipped to carry out roadside tests as they do for alcohol.
Other countries had a proper setup in place for testing drivers before considering the liberalisation of cannabis use. Cannabis abuse is not only linked to drug driving but also to the increased risk of workplace incidents, so unless abuse is tackled “we can only expect to have more accidents”.
Asked how inflation was affecting insurance companies, Cauchi said that, aside from the increase in operational costs, the cost of claims is also being impacted negatively. Insurers must pay for the cost of repairs, whether to buildings or vehicles, and such costs have gone up substantially.
He said the cost of a bumper had doubled as has the cost of materials used for the repairs of buildings and labour.
With increases in traffic accidents and resultant claims, premiums are expected to continue to climb.
In the meantime, insurance companies were struggling to recruit staff, since there was a serious shortage of qualified people. University and MCAST courses were not attracting enough students required by the industry.
“The demand for skilled people to fill posts in the insurance industry is expected to continue rising at a fast rate in the immediate future and the success of this important economic sector lies on being able to attract enough new talent to it,” he said.
Turning to the ever-growing fleet of electric vehicles on the island, he said this was a new challenge to insurers, not only in assessing the risk and charging the correct premium for it but also in ensuring that these cars can be repaired safely and efficiently when they are damaged in an accident.
He said insurers were reporting that there were still very few repairers in Malta who are trained and equipped to handle electric vehicles and the cost of such repairs tends to be higher as the repair process generally takes longer and the cost of parts is higher.
The MIA believes the authorities ought to organise such training.
On the association’s wish-list for the upcoming budget, Cauchi said that, aside from measures for more road safety, the MIA proposed fiscal incentives for green investments, including insurance companies as major investors in the local economy.
In addition, the association would also welcome workplace pensions with a voluntary opt-out system, previously known as second pillar pensions, increased benefits for third pillar (voluntary) pensions and benefits for those who opt for a private health insurance plan.