KUALA LUMPUR: Bank Negara Malaysia says the proposed basic motor insurance coverage for third party bodily injury and death (TPBID), to be provided at a reasonable premium, is still at the formulation stage.

The central bank said today it had been working closely with the relevant authorities to draw up the scheme.

Bank Negara said it would engage with the relevant stakeholders, which include consumer, trade and industry associations as well as professional bodies, as part of the normal consultation process undertaken for major initiatives.

"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 proposals announcement, highlighted the need to provide a basic TPBID motor insurance coverage, at a reasonable premium that was in line with the level of protection provided.