PRIVATE CAR &
MOTORCYCLE
Why do you need to buy vehicle insurance?
Following the Road Transport Act 1987, all vehicle owners must own a valid Motor Vehicle License (road tax) and motor insurance to use their vehicles on the road. Therefore, it is illegal to drive on any public road in Malaysia if you do not have valid motor insurance and road tax.
You need to first renew your insurance before you can proceed with road tax renewal.
How does vehicle insurance work?
In order to enjoy the protection by your insurance, you will need to pay an amount called “premium” to your selected insurer annually.
The premiums that you and other policyholders pay will go to the insurer’s funds. Your insurance company will then manage the funds and use them to cover the financial losses involving the insured vehicles of the policyholders.
Types of Vehicle Insurance in Malaysia:
Comprehensive Insurance
This type of insurance provides broader coverage. It includes coverage for third-party liabilities as well as coverage for your own vehicle against accidental damage, fire, theft, and other perils.
Third-Party, Fire, and Theft Insurance (TPFT)
This type of insurance covers third-party liabilities and also provides coverage for your own vehicle in the event of theft or damage caused by fire.
Third-Party Insurance (TP)
or Third-Party Property Damage and Bodily Injury Insurance
This is the minimum requirement by law. It covers the policyholder's liability for bodily injuries or death to third parties and damage to third-party property.
