KUALA LUMPUR, March 5 (Bernama) -- The proposed new basic motor insurance coverage for third-party bodily injury and death (TPBID) is still at the formulation stage, Bank Negara Malaysia said on Friday.

The central bank will be engaging with the relevant stakeholders, which include consumer, trade and industry associations as well as professional bodies, as part of the normal consultation process undertaken by Bank Negara for major initiatives.

Bank Negara said in a statement that it has been working closely with the relevant authorities in formulating the new TPBID scheme.

"These consultation sessions will serve as the platform to obtain feedback from the relevant stakeholders, prior to submitting the proposal for the new TPBID scheme to the government for consideration," it said.

The government, during the Budget 2010 announcement, had announced the need to provide a basic motor insurance coverage for TPBID, at a reasonable premium that is commensurate with the level of protection provided.