1. MOTOR/ AUTOMOBILE

Motor insurance is the most common type of insurance in Malaysia. In Malaysia, it is a requirement that all automobiles on public roads be insured either through comprehensive or third party insurance. As a requirement to renew your road tax, it is compulsory to prove to the Road Transport Department (JPJ) that you do have valid insurance.

The latest development in the administration of Motor insurance is the kick off the “e-Cover” policy developed by the Transport Ministry. With effect from 1^st January, 2005, all road tax renewals done through JPJ must be accompanied with Insurance arranged by “electronically”. What this means is that the insurance must be done up through the Insurer, who then electronically sends over the confirmation of cover to JPJ. This also means that the old way of renewing your road tax with a physical cover note is no longer valid. The main rationale behind the changes is mainly to stem the rampant forgeries of cover notes by syndicates.

What it offers:

a) Comprehensive or First Party Cover

The cover offers protection against financial loss because it covers fire, theft and accidental damage to the Insured's vehicle in addition to the protection against the legal liabilities to third party for death and bodily injury and damage to property that may arise through the negligence of the driver.

b) Third Party cover

The cover offers protection against financial loss as a result of damage the driver of the vehicle may cause to the property of a third party. It also provides protection against any claims that may arise because of the death of or injury to another person through the negligence of the driver.  The insured’s own vehicle is not covered unless the accident is through the fault of the other party.