In Malaysia, motor insurance is compulsory for all motor vehicles under the Road Transport Act 1987.
Types of Motor Insurance
There are 3 main types of Motor Insurance, they are set out below:
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 Cover is the minimum level of cover you need to legally be able to drive on the roads. This means that only third parties (not your own vehicle) can claim for damages from your insurer, and you can not claim for damages to your own vehicle in any accidents or any fire damage to your own vehicle, or if your vehicle is stolen, and is usually the cheapest insurance type available.
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.
The coverage here is the same as Third Party Cover, with the added coverage of damages from fire and theft of your vehicle.
Comprehensive Cover
This policy provides the widest coverage and is the most common type of insurance in Malaysia. With this policy type, 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 are covered.
Comprehensive Cover is probably a good idea if your car is worth more than RM30,000 and gets more important the more valuable your car is.
Warning: Any liability to driver and passenger of own vehicle (bodily injury, property, death) is not included in any of the 3 types of policies.
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