KUALA LUMPUR, July 26 (Bernama) -- The chip-based card has succeeded in stamping out the problem of thefts from automatic teller machines (ATMs) of local banks, the Dewan Negara was told Tuesday.

Finance Ministry parliamentary secretary Datuk Seri Dr Hilmi Yahaya said that since its introduction in 2003 there had been no theft using the chip-based ATM card.

Criminals were unable to breach the security safeguards in the card, he said in reply to senator Datuk Omar Faudzar.

Bank Negara's guidelines on the use of the card were good if not for the misuse of the card by friends who knew the cardholder's personal identification number (PIN), he said.

When cards with magnetic tape were used between 2001 and 2003 there were 11,800 ATM thefts involving losses amounting to RM16.8 million.

Meanwhile, Health Ministry parliamentary secretary Lee Kah Choon told senator Datuk Hazizah Mohamed Sultan that the government would introduce a health insurance system similar to the health scheme introduced by insurance companies in the country.

However, unlike the private sector, it would not charge a high premium.

"This system will be run by a statutory body yet to be set up. However, the public can still get treatment as usual at the government hospitals," he said.