When you buy a motor vehicle, you need to buy a motor/ Car insurance policy for use of the vehicle on the road. There are, however, many types of motor/ car insurance policies available. The common types are:-
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). However, no insurers in Malaysia is offering this. The minimum you can buy is Third Party Only.
Third Party cover
This policy insures you against unlimited liability claims for bodily injuries or deaths caused to other persons (known as the third party), as well as up to RM3mil liability loss or damage to third party property caused by your vehicle. Damages to your own vehicle is not covered.
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.
This policy provides a more comprehensive 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. However, it is not fully comprehensive, you can add-on additional coverage to enhanced your coverage, such as:
– Special Perils to cover against damages cause by convulsion of nature
– Cover for Windscreens, Windows and Sun roof
– Legal liability to Passenger
– Legal liability of Passenger
– Waiver of betterment
– Extension of cover to Kingdom of Thailand etc