Driving under the influence (DUI) voids motor insurance coverage, even if the accident involves only the motorist’s vehicle, says the General Insurance Association of Malaysia (PIAM).
PIAM said losses incurred, whether directly, indirectly, wholly or partly, cannot be claimed if one is involved in an accident while driving intoxicated.
“Driving under the influence of alcohol, drugs or any other intoxicating substance above the prescribed limit is an offence under the Road Transport Act 1987.
“Consequently, motor insurance policies in Malaysia explicitly exclude coverage when the driver is committing an illegal act,” PIAM said in a statement following an enquiry by The Star.
It added that, under Section 95 of the Act, insurers are generally obligated to satisfy judgments obtained by third parties against the insured for bodily injury or death claims, even if the insured driver may have breached DUI policy conditions.
PIAM said the innocent victim or their next-of-kin in the event of fatality is entitled to claim compensation for bodily injury or death.
Compensation claims by innocent victims or next-of-kin include medical expenses, loss of income and other damages as assessed by the court, said PIAM.
PIAM added that if the insurer is required by law in Malaysia, Singapore or Brunei to pay a third-party claim that would otherwise not be covered under the policy, it can later recover the amount from the insured.
As for third-party property damage in situations where one’s vehicle is hit by someone driving under the influence, PIAM said the situation differs.
Where the driver-at-fault has breached policy conditions, the insurer may rely on policy exclusions to deny liability for third-party property damage claims, said PIAM.
In such cases, the innocent motorist may file a claim through their own insurer via the Own Damage Knock-for-Knock (OD-KFK) mechanism to retain their No Claim Discount.
The OD-KFK is only applicable if the victim has a comprehensive motor insurance.
For this, PIAM advised motorists to lodge a police report promptly and submit complete documentation, including the police report, investigation findings confirming fault, photographs of the accident or damage, and other required documents.
PIAM added that victims can also pursue legal action against the driver-at-fault if the vehicle is not insured under a comprehensive insurance policy.
PIAM chief executive officer Chua Kim Soon said claims are generally processed promptly for victims when liability is clear and documentation complete.
He encouraged the public to familiarise themselves with the Digital Roadside Assistance mobile or web applications for motor emergencies and tracking claims.
“Human errors cause eight out of 10 road accidents, with speeding, distracted driving and DUI among the factors, resulting in around 6,000 deaths annually in Malaysia.
“All drivers should obey traffic rules and stay vigilant,” he said.
Source: https://www.thestar.com.my/news/nation/2026/04/04/dui-voids-motor-insurance-coverage-says-piam
