One of the largest insurance sector and coverage is Motor Insurance. This is due to the fact that Motor Insurance is mandatory for all vehicles using Malaysian public roads under the Road Transport Act 1987.

 

 

 

TYPES OF MOTOR INSURANCE COVER

When you buy a motor vehicle, you need to buy a motor insurance policy for use of the vehicle on the road. There are, however, many types of motor insurance policies available. The common types are:-

 

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.

 

 

 

TYPES OF MOTOR INSURANCE COVER

Third Party (Also known as 3rd party Policy)	Third Party Fire & Theft (Sometimes known as 2nd party Policy)	Comprehensive (Also known as 1ts party Policy)	Extension Cover/ Optional Benefits to Comprehensive Policy (Subject to agreement by your Insurers and payment of additional premium)
Damage to other parties’ property	Damage to other parties’ property	Damage to other parties’ property	Damage arising from flood, windstorm, landslide & other natural disasters
Death or injury to other parties	Death or injury to other parties	Death or injury to other parties	Breakage of Windscreen only
N/A	Loss/damage to your vehicle caused by Theft or Fire	Loss/damage to your vehicle caused by Theft or Fire	Damage to your vehicle due to Malicious Damage or Riot, Strike & Civil Commotion
N/A	N/A	Damage to your vehicle due to accident	Personal Accident and Medical Benefits for driver and/or passengers
N/A	N/A	N/A	Liability to Passenger
N/A	N/A	N/A	Liability to third party caused by Passenger