For any vehicle to be on the road. It is compulsory that the vehicle must be insured. This is in accord to the Road Transport Act 1987. Law aside, it actually make sense to have car insurance because once you are on the road, accident does happen! It may or may not be your fault, but accident happened, and it is call accident….something that none of us expected it to happen, but it happened, and will happen.
Having a valid motor insurance protect you against third party liability as well as damages to your own vehicle. Thus, there are basically 3 types of motor insurance coverages.
- Comprehensive Coverage
- Third Party, Fire & Theft Coverage
- Third Party Only Coverage
COMPREHENSIVE COVERAGE – As the name suggest, this is the most comprehensive cover you can get in the market. It covers against :
i) Third Party Property Damage
ii) Third Party Bodily Injuries/ Death
iii) Own Property Damage
When there is an accident and your car hit others car or other properties, your comprehensive cover will cover the damages up to RM3mil liability. So, if you lose control and hit into a Bentley, Lamborghini, Ferrari….panic not. Your comprehensive car insurance covers up to RM3 million. Same for properties that you damage, such as crashing into a petrol station etc.
Thing get more complicated when an accident involved bodily injuries or death. If you are at fault, but not driving under the influence of drag/alcohol or using the vehicle for unlawful activities, your comprehensive insurance will cover you against the liability for the injuries/death. Liability for Third Party Bodily injuries/death is unlimited and subject to court decision. At least with insurance, you know your insurance company is behind you.
Lastly, in an accident, your own vehicle will be damaged. The cost of repair to bring your vehicle to the stage before the accident will be taken care by your comprehensive cover.
However, do not that although it is call a comprehensive coverage, there are certain circumstances where it does not cover, and you will need to purchase additional add-on if you wish to enhanced your coverage. Below are some of the more popular add-on you can purchase
- Windscreen – You can add-on to cover windscreen (include window, sun roof) where any claim for windscreen will not affect your NCD.
- Special Perils – Any damages to your car caused by thunder-storm, such as flood, landslide. fallen tree during storm are not cover unless you have add-on to extend cover under special perils.
- Legal Liability to Passenger (LLNP) – Your passenger (friends, colleague etc) may sue you if they are hurt in your vehicle. Your standard comprehensive insurance does not include this, so you may want to add-on to further protect yourself. LLNP is compulsory when driving into Singapore.
- Legal Liability of Passenger (LLOP) – An accident caused by your passenger is not cover under your motor insurance, unless you add-on LLOP. Many a time, your passenger can cause damage/accident when they abruptly open their door without noticing on-coming vehicles.
- Extension to Cover Thailand – Your motor insurance will cover your vehicle in Malaysia, Singapore and Brunei. But not including Thailand, so if you intend to drive into Thailand, you will need to buy an extension to Thailand, otherwise you buy a separate Insurance from Thailand, upon entry Thai border.
- Compensate for Access Repair Time (CART) – When your vehicle is under-going repair, CART will pay the daily amount x the numbers of day you purchase for the inconvenience caused. If you are not the party at fault, you can claim CART against third party insurance.
- Strike, Riot and Civil commotion – Your vehicle is not cover unless you have SRCM add-on when there is a riot and your vehicle get damaged. Although Malaysia is generally peaceful, you dont know when thing can turn ugly. One example is the Lowyat handphone theft incident.
THIRD PARTY, FIRE & THEFT – TPFT generally cover what comprehensive insurance offers, except own damage. So, it covers Third Party Properties Damages, as well as Third Party Bodily injuries/death. It just does not cover own damages, except for Theft and Fire. So, in the event of an accident, where your cover is TPFT, and you hit someone car. The damages to other party vehicle is covered by your insurance but not your vehicle. You will have to bear the cost for your own repair.
Your TPFT will only cover for your losses if it is due to a fire or theft.
THIRD PARTY ONLY – TPO cover is the least coverage available in the market. Most insurers do not offer TPO cover and the last resort is to get cover from MMIP (Malaysia Motor Insurance Pool). As the name suggest, a TPO covers against Third Party liability (property and bodily injury) only. Any damage to your own vehicle will not be covered by your TPO policy.