WHY SHOULD I GET CAR INSURANCE?

In Malaysia’s Insurance industry, Motor Insurance as a product is one of the largest. This Insurance type is compulsory for all vehicles driven on the country’s public roads. Motor Insurance includes two types – Car Insurance and Motorbike Insurance.

 

Even though its compulsory, let’s look at why Car Insurance is important.

Car Insurance provides financial help/assistance to one’s car, the person driving it, and sometimes the other passengers in the car too!

Let’s say (god forbid) there is an accident. The insurance in this case is to protect the one driving the car and those involved in the accident. Also, the vehicle damage costs need to be attended to. Therefore, having a Car Insurance is a necessity, and that is why the Malaysian regulators have made it compulsory!

 

What are the kind of covers available in to a person?

Broadly there are 3 kinds of Car Insurance covers available in the market:

  • THIRD PARTY – This is the most fundamental type of cover since it’s compulsory to purchase one. It protects the buyer from having to pay for damages caused to another car or other’s properties when an accident occurs.
  • THIRD PARTY FIRE & THEFT – Apart from Third party, Fire & Theft damages are included/covered too.
  • COMPREHENSIVE COVER – Like the name suggests, this cover pretty much covers most angles of protection. Apart from the Third party’s physical damage and the vehicle’s damages, the owners of the car are covered too. In addition, fire and theft damages are included too.

 

Cover

Death/injury occurs to other parties

Damage to others’ property

Damage due to fire/theft

Damage to own vehicle due to accident

Third party

                Yes

                Yes

                No

                No

Third party (fire and theft)

                Yes

                Yes

                Yes

                No

Comprehensive

                Yes

                Yes

                Yes

                Yes

 

However, some comprehensive policies, subject to additional payment of premium, will/may cover the following:

  • Windscreen damage/breakage
  • Damage from natural disasters like windstorm, landslide, flooding etc.
  • Damage to vehicle due to strikes, riots and other such disruptive acts
  • Medical benefits for driver of the car and/or the passengers in the car

 

Here are certain items which are NOT covered under a standard Car Insurance?

  • If death occurs due to an accident or any physical injury
  • If the passenger in your car claims liability from you while being involved in an accident
  • Theft of car accessories unless otherwise specified while taking the policy
  • Any wear and tear, breakdown of mechanical or electrical components in the vehicle

 

While it is mandatory to purchase Car insurance policy in Malaysia, it is vital that one is covered for the possible risks mentioned above. This why other types of Insurance policies are essential to one’s portfolio.

 

Malaysia has several insurance companies offering a variety of car insurance plans. Visit www.smartgenie.com to compare and get the best price for different policies.

 

Disclaimer: All information provided in this article/blog, published on this website is strictly for general information purpose only. SmartGenie does not provide any warranty about the authenticity and accuracy of such information. SmartGenie will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Please visit the websites of respective banks/financial institutions for more details about products.



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