Useful Info on Motor Insurance

Third-Party Only policy not only covers death or bodily injuries to third parties (including passengers) but also provides cover against damage to property belonging to third parties. The policy also covers any accident occurring on the the road and on private property. However, it does not provide cover against damage to the insured’s own motor vehicle, whatever the cause.

Key Benefits:

• Death or injury to other parties
• Damage to other parties’ property

This is an extension of the Third-Party Only policy in that it additionally protects the insured’s own motor vehicle against loss or damage which may result directly from fire or theft. The loss does not need to be total, as this policy covers even partial damage to the insured’s own motor vehicle. This type of coverage is usually compulsory for any owner who is still financing his motor car which is more than 10 years old.

As the insured perils are limited to fire and theft, damage to the insured’s own motor vehicle by any other perils is not covered by this policy. Hence, a motorist who want additional protection for this motor vehicle against loss or damage by other perils will have to purchase a Comprehensive coverage policy.

Key Benefits:

• Death or injury to other parties
• Damage to other parties’ property
• Fire damage to, or theft of, your vehicles

This type of policy offers the broadest protection against financial loss from using a motor vehicle up to its market value. This policy not only covers the insured’s liability for causing bodily injuries (including death) or property damage to third parties (including death and bodily injuries to passengers), but also covers accidental and malicious damage to the motor vehicle that the insured owns, or with some exceptions, other motor vehicles that the insured uses with permission of the motor vehicle owner.

Apart from these, the policy also offers additional benefits in connection with the use of the motor vehicle. For example, the insurer can provide for reasonable medical expenses that the insured has necessarily incurred arising out of his own bodily injuries. This medical expenses benefit can be extended to cover bodily injuries sustained by any named driver, authorised driver or passenger of the insured’s motor vehicle. Then, there is also the personal accident benefits which provide monetary compensation for the death or permanent disability sustained by the insure and/or any passenger of the insured’s motor vehicle.

Comprehensive coverage is usually not available for any motor car which is more than 10 years old. An owner is usually required to get comprehensive coverage if his motor car is less than 10 years old and is still under financing. However, there are insurers who provide comprehensive coverage for motor cars only up to 7 or 8 years old.

Key Benefits:

• Death or injury to other parties
• Damage to other parties’ property
• Fire damage to, or theft of, your vehicles
• Accidental damage to your vehicle
• Windscreen damage
• Damage arising from riot, strikes & civil commotion
• Personal Accident cover (Private Motor Only)
• Medical expenses (Private Motor Only)

Optional benefits are available to meet your individual needs. Do note that optional benefits for comprehensive policies may be subject to payment of additional premium.

Key Benefits:

• Damage arising from flood and windstorm
• Liability of passengers for acts of negligence
• Personal Accident benefits for passengers
• Additional excess
• No-Claim Discount
• protection (Private Motor Only)

The following information is usually asked for in the Motor Insurance proposal form:

• Proposer’s name, address, contact details & other personal particular
• Driving experience
• Occupation (indoor/outdoor) and nature of business
• Claims experience during the last 3 years
• Period of insurance required
• Details of named drivers(s), including age & driving experience
• No Claim Discount (NCD) entitlement from current/previous insurer
• Type of coverage & optional extensions required
• Market value of the car & whether to insure with or without COE & PARF value
• Years of manufacture of the car
• Details of accessories
• Body & car type
• Car model & seating capacity
• Registration number & date of registration
• Engine & chassis number
• Whether the car has been modified
• Name of hire purchase company, if the car under hire purchase
• Vehicle usage – private, business or hire, normal or off-peak
• Insurance history – declined, cancelled, imposed an excess or other special terms, or refused to renew insurance
• Other pertinent information, such as any existing physical or metal infirmity, defective vision or hearing, deduction of demerit points, conviction of driving offences (excluding parking fines) during the last 3 years, pending prosecution, suspension or cancellation of driving licence and frequency of driving to Malaysia.