Suruhanjaya Pengangkutan Awam Darat (‘S.P.A.D’ or the ‘Commission’) is pleased to inform that school children traveling in legal school buses will continue to be covered under the School Children Insurance Scheme in 2015. This insurance scheme was announced by Y.A.B. Prime Minister during the tabling of the 2013 Budget where the government appointed S.P.A.D. as the facilitating agency.

The government has approved the continuation of the insurance scheme based on the safety coverage and the favourable response received from parents, school authorities and school bus operators. The insurance scheme is one of S.P.A.D.’s key initiatives to raise up the service standards of the school bus industry and at the same time to aid school children and their families when faced with untoward incidences.

Another notable program in the form of a School Bus Replacement Scheme was introduced in 2013; and this scheme will end on 31 December 2014. To date 200 school bus operators have benefited from this scheme.

S.P.A.D. would like to take this opportunity, in light of the upcoming back to school season, to encourage parents to opt for legal school buses operators for the safety of their children. The Commission also encourages school bus operators who have yet to come forth and register with S.P.A.D., to do so in order to legalise their services and to become eligible for the School Children Insurance Scheme and other benefits.

SCHOOL BUS INSURANCE SCHEME

  • The School Bus Insurance Scheme offers insurance protection for accidents, permanent disability and death to all school children using services of school buses registered with S.P.A.D. for Peninsular Malaysia and registered with the Commercial Vehicle Licensing Board (LPKP) for Sabah and Sarawak.
  • This initiative has benefited almost 2 million school children with a maximum coverage of RM 100 thousand.
  • The insurance coverage provided includes for death (RM100,000), permanent disability (up to RM100,000), medical expenses up to RM3,000, hospital benefits (RM100 per day for up to 30 days) and death related expenses (RM2,500).
  • The scheme’s coverage includes the use of school buses for activities such as school excursions, study trip and any additional curricular activities approved by school authorities.
  • Since January 2013 until present, 10 insurance claims have been made. The total amount of claims is RM 316,612.10. The scheme has helped family members, next-of-kin and school children; as in the case of Mohd. Sanusi Bin Ismail, student of SMK Seri Gadong. Assistance was provided to enable him to undergo surgery to save his remaining leg.

SCHOOL BUS REPLACEMENT SCHEME

  • The School Bus Replacement Scheme is a special loan assistance scheme for school bus operators who wish to replace their buses with new ones.
  • The government has provided a cash rebate of RM10,000 and a subsidy at an annual interest rate of 2%.
  • The initiative managed by Bank Simpanan Nasional (‘BSN’) also offers a loan of up to RM150,000 for a period of 9 years.
  • A total of 220 applications were received by BSN; 200 were approved while 20 were not approved (applicants were declared bankrupt).
  • The scheme will end on 31 December 2014 and BSN will continue to accept applications sent in before that date.