According to the Malaysian Institute of Road Safety Research, in 2014 alone, Malaysia witnessed over 470,000 road accidents, which led to 6,674 deaths. However, given the high number of accidents in this country and the cost of cars, insurance rates are not as high as one might think.
The calculation of insurance rates is based on the vehicle’s insured sum, the cubic capacity (cc) of the vehicle’s engine, the amount of “no claims discount” (NCD) you’re entitled to, and the number of passengers your vehicle can legally carry.
In addition, you can opt for extra coverage for things such as legal liability to passengers, legal liability for a passenger’s act of negligence, flooding, a cracked windscreen, a stolen radio/cassette, additional named drivers, and ‘strike, riot, and civil commotion’. Only third-party insurance is compulsory in Malaysia, but you are well advised to takeout comprehensive coverage.
Types of car insurance
There are three types of motor insurance available in the Malaysian market:
1. Third Party
If you injure someone while driving, to avoid paying for his or her hospital bills, you need at least a third party car insurance. This protects you from claims for bodily injury or even death caused to other people (‘third parties’), including any loss or damage to their vehicle or property.
This also means that you cannot claim for any damages on your own person or vehicle, as third party cover is the cheapest and most minimal policy you need to be allowed to drive legally on public roads.
2. Third Party, Fire and Theft
Like a third party insurance policy, this policy covers you against claims from third parties from bodily injury, death, and loss or damage to their property. In addition, you will be able to claim compensation for loss or damage caused by fire and car theft.
3. Comprehensive Cover
In addition to third party protection, and fire and theft coverage for you own car, you will get cover for any accidental loss or damage inflicted to your vehicle due to an accident. It is a good idea to buy a comprehensive plan if you own a relatively expensive car; of a market value of more than, say, RM35,000.
The insurance industry is highly regulated with fixed rates, so you will not be able to shop around for a low rate.
Making a claim
Some expats will be shocked to learn it can take up to six months to receive reimbursement if your car is stolen, as there are a number of checks that insurance companies are obliged to complete before they will settle your claim. As car theft is quite common in Malaysia, this can be quite a hardship.
In many cases the cars are never recovered, so insurance companies will wait until they are satisfied the car is not going to reappear. They are not required to settle the claim until six months have passed – much longer than in many western countries – and some local insurance companies seem to leave payment until almost the last day.
For this reason, it may be smart to check with the insurance company about the average payout time if your car is stolen.
If you buy a new car, the car seller will arrange insurance with the company that they have a relationship with. If you want to use your own preferred company, you may have to put some pressure on them to change.
As in many countries, you are required to display your road tax sticker on the windscreen of your car, which you will receive when you apply for or renew your road tax. This works as proof that you’ve paid your road tax for the year, and since there are no lapse reminders, make sure you renew your insurance when it comes due or you could face a fine.
This is a list of insurers offering coverage in Malaysia from ringgitplus.com:
ACE Jerneh Comprehensive Motor Insurance
AIA Comprehensive Private Car Insurance
AIG Comprehensive Motor Insurance
AXA Affin Comprehensive Motor Insurance
AXA Affin SmartDrive
Allianz Comprehensive Motor Insurance
AmGeneral Private Motor Insurance
Berjaya Sompo Private Motor Insurance
CIMB Motor Insurance
Easy by RHB Easy-Insurans Kasih Motor
Etiqa Comprehensive Private Car Takaful
HSBC Comprehensive Car Insurance
Hong Leong Comprehensive Motor Insurance
Kurnia Comprehensive Motor Insurance
Liberty Comprehensive AutoStar
Lonpac Comprehensive Private Vehicle
MAA Takaful Comprehensive Motor Coverage
MPI Generali Comprehensive Private Car Insurance
MSIG Comprehensive Motor Insurance
Maybank Comprehensive eMotor Takaful
Overseas Assurance Comprehensive Motor Insurance
Pacific Comprehensive Motor Insurance
Pacific and Orient Comprehensive Motor Insurance
Progressive Comprehensive Motor Insurance
QBE Private Car Comprehensive Insurance
RHB Comprehensive Private Car Insurance
Takaful IKHLAS Comprehensive Commercial Vehicle Insurance
Takaful IKHLAS Comprehensive Private Car
Takaful Malaysia Comprehensive myMotor
Tokio Marine Comprehensive Motor Insurance
Zurich Comprehensive Motor Insurance
ExpatGo Guide to Driving in Malaysia – Index
Art Exhibitions in KL: December 2018
Round up the year by discovering fresh creativity and new talent at these art exhibitions in KL happening this December 2018.
Four Simple Strategies to Support Your Child’s Reading Development
Literacy is always a hot topic among parents. Parents feel like they need to be doing more, but are not always sure...
Has Education Changed Much in The Last 25 Years?
The initial response to this question for most people would be that it has changed a lot. However, probe beneath the veneer...
1.3KFood & Drink
Where to Shop For Organic Produce and Products in KL and Selangor
Places in KL and Selangor that sell organic pet deodorisers, natural vegewash, eco-friendly cloth diapers, and even a pre-order service for organic...
Cargo Cruising: Travelling Aboard A Cargo Ship
Achim Lauermann shares his exciting and unique experience travelling via cargo ship aboard a CMA CGM ship.
Old Video Clips
INTRODUCTION We think it’s interesting to see old video footage of Malaysia and went on YouTube to try and find some suitable...
Empowering Women and Youth for a Better Malaysia
Contributed by Lean In Malaysia EDITOR’S NOTE: Kindly be advised that, due to the anti-ICERD rallies held over the weekend of 8...
Georgia On My Mind
Editor Chad Merchant visited the charming country earlier this year, and months later, is still revelling in the memories.
Expressions of Malaysia: Artist Rachel Gray
Rachel has been living in Malaysia for over four years, and is completely inspired and dazzled by the rich diversity of the...
A Sophisticated Evening at The Mews
It was a wonderful and classy evening with string band performances, canapes, and lovely wines from the Straits Wine Company.