Malaysia Vehicle Insurance FAQs
Act Cover
This is the minimum cover corresponding to the requirements of the Road
Transport Act 1987. The cover required is in respect of legal liability for
death or bodily injury to third party (excluding passengers). This Policy is
hardly ever written by Insurers.
Third Party Cover
This policy insures you against claims for bodily injuries or deaths caused
to other persons (known as the third party), as well as loss or damage to
third party property caused by your vehicle.
Third Party, Fire and Theft Cover
This policy provides insurance against claims for third party bodily injury
and death, third party property loss or damage, and loss or damage to your
own vehicle due to accidental fire or theft.
Comprehensive Cover
This policy provides the widest coverage, i.e. third party bodily injury and
death, third party property loss or damage and loss or damage to your own
vehicle due to accidental fire, theft or an accident.
Excess
Most policies are subject to an excess clause. An excess is the first amount
of a claim for which you will have to pay. Your insurance pays for the
amount beyond the excess. The excess clause may apply on repair claims
and/or on theft claims. Some insurers will overlook application of the
excess if repairs are undertaken at their panel of repairers.
Exclusions
A standard motor insurance will not cover certain losses, such as your own
death or bodily injury due to a motor accident, your liability against
claims from passengers in your vehicle (except for passengers of hired
vehicles such as taxis and buses) and loss or damage arising from an act of
nature, such as flood, storm and landslide. However, you may pay additional
premiums to extend your policy to cover flood, landslide and landslip as
well as cover your passengers. It is important to check your policy for the
exclusions.
No Claim Discount
The premium payable may be reduced if you have no-claim-discount (NCD)
entitlement. NCD is a ‘reward’ scheme for you if no claim was made on your
insurance policy on an annual basis. Different NCD rates are applicable for
different classes of vehicles. For a private car, the scale of NCD ranges
from 25% to 55% as provided in the policy.
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