Motor Insurance Policy

Cover Third Party Cover Third Party + Fire & Theft Cover Comprehensive Cover
Liabilities to third party for:
• Injury
• Death
• Property loss/damage
Loss/damage to own vehicle due to accidental fire/theft
Not Covered
Loss/damage to own vehicle due to accident
Not Covered
Not Covered
Liabilities to driver & passengers of own vehicle (property, bolidy injury, death)
Not Covered
Not Covered
Not Covered


Your standard motor insurance policy DOES NOT cover:
  • Your own death or bodily injury;
  • Your liability against claims from your passengers;
  • Theft of non-factory fitted vehicle accessories (car stereos, leather seats, sports rim, etc.) unless otherwise declared
  • Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown failures or breakages;
  • Loss/damage arising from an act of nature e.g. flood, landslide.

However, you may pay additional premiums to cover some of the above exclusions e.g. flood or your liability against claims from your passengers. Windscreen and vehicle accessories covers are also useful extensions to consider for preserving your No-Claim-Discount in the event of a loss/damage. Please check for other exclusions and extension covers available with your insurance company/agent.

What you should know when buying motor insurance cover

Insurable Interest
Make sure that you buy cover as soon as you purchase a vehicle. If you buy a used car, you should protect your interst by purchasing a motor insurance cover as the cover of the previous owner is no longer valid even if legal ownership transfer has not been effected with Jabatan Pengangkutan Jalan (JPJ)

Insured Value/Sum Insured
Ensure your vehicle is adequately insured. New vehicle: sum insured = purchase price. Others: sum insured = market value of vehicle when policy is bought

Under-insurance: If sum insured is less than the market value, you are deemed as self-insuring the difference. In the event of a loss, you will only be partially compensated.

Over-insurance: If sum insured is higher than market value, maximum compensation is the market value of the vehicle. You cannot profit from a claim (Principal of indemnity)

Determination of market value of your vehicle is important to avoid under-or over-insurance

Average Clause

It is applied when you suffer damage to your vehicle which is under-insured. Your claim will be reduced proportionately by the uninsured portion, e.g. if you have insured your vehicle up to 70% of the market value, the insurance company will only pay 70% of the total repair cost.


Disclose all material facts, e.g. any previous accidents and modification to engines. If you fail to do so, your insurance company may refuse your claim or any claim made by a third party against you. In such cases, you are personally liable for those claims.


The premium payable may be reduced by your NCD entitlement. NCD is ‘awarded’ if no claim was made against your policy during the preceding 12 months of policy. Your NCD entitlement will depend on the class of your vehicle and number of years of continuous driving experience without any claim made against your insurance policy. You will lose your entire NCD entitlement once an own damage or a third party claim is made against your policy.


It is the amount of loss you have to bear while your insurance company will pay for the balance of your vehicle damage claim. If you have an ‘excess’ on your policy, you must pay the amount of the ‘excess’ direct to the repairer.

Payment of Premium

  • Premium must be made to the agent representing your insurance company or to your insurance company directly before cover can be granted
  • Payment can be made by cash, credit card or cheques (cheques should be made payable only in the name of the insurance company).
  • Insist on a receipt for the premium paid to your insurance agent or insurance company.
  • With the full implementation of the JPJ eINSURANS system with effect form 2nd January 2005, physical cover notes are no longer issues. However a statement containing details of your motor cover will be issued to you as confirmation of purchase of motor insurance.
  • Through the JPJ eINSURANS, all information on insurance coverage will be channelled electronically by your agent/insurance company to JPJ

What you should know when making a claim

If your car is involved in an accident:
  • Take note of the names and addresses of all drivers involved, make/model and registration numbers of each vehicle, the driver’s license numbers, the insurance particulars and names and addresses of witnesses.
  • Make a police report within 24 hours and immediately notify your insurance ocmpany in writing with full details.
  • If your vehicle is damages, you may either make an own damage claim or a third party claim:
    Own damage Claim –  making a claim against your own comprehensive policy. However you will lose your NCD entitlement.
    Third party claim –  If you are not at fault in the accident, you can submit the claim either directly to the insurance company of the party at fault, or if you have a comprehensive policy, to your insurance company, without losing your NCD entitlement. You are encouraged to submit your claim to your own insurance company for speedier claims processing.
  • For own damage claims, call your insurance company immediately for advise. If your insurance company recommends or requires that repairs be done at a panel/authorised workshop, then take your vehicle there as advises. Your insurance company will reject your claim if your vehicle is sent to a workshop that is not authorized by your insurance company. Your insurance company will send an insurance loss adjuster to access the damage to your vehicle before authorising the repairs.


It is applied when in the course of repairing an accident-damaged vehicle (age of vehicle is five years and above), an old part is replaced with a new franchise part. You will have to bear the difference in cost (depending on the age of your vehicle) as your repaired vehicle is in a better condition than it was before the accident.

Compensation for Assessed Repair Time (CART)

  • CART means a reasonable amount payable by third party insurance companies as compensation for loss of use of vehicle.
  • The number of days allowed for CART is based on insurance loss adjuster’s recommendation on the number of working days estimated to repair the accident-damaged vehicle and not the number of days the accident-damaged vehicle is at the workshop.
  • Where receipts are produced for vehicle rentals (only from a licensed car rental company), insurance companies shall pay the amount shown on the receipt and original car rental agreement, subject to the condition that the vehicle rented is of an equivalent model to that of the damaged vehicle. The number of days allowed is based on the insurance loss adjuster’s recommendation on the number of working days estimated to repair the accident-damaged vehicle.

How to lodge a complaint and redress avenues available

For more information, log on to or visit the kiosks at most branches of insurance companies or contact your agent.