Q&A : How to Renew Car Insurance in Malaysia

How to Renew Car Insurance in Malaysia

Q: My car is 9 years old, eligible to renew online?

A: Yes it's worth it. To make an online update, eligible cars are 15 years and under.

Q: What are the 1st party and 3rd party car insurance / takaful differences?

A: Malaysia's road laws require every motor vehicle to have a third party insurance cover to protect the interests and rights of others. 

Renew Car Insurance in Malaysia

That is, there are parties who will be liable for liability due to negligence of policyholders. Example:

            1. A car breaks the walls of the house. The host can claim from the car owner's insurance.

            2. A car breaks pedestrians. Insurance will incur medical costs and damages including those that cause death and live survivals for the victim.

            3. Car A violates the car B. For that, Car B reserves the right to make repairs and damages from car insurance A.

In the event of damage to the vehicle itself, the owner can not make a claim from insurance if he / she does not take First Party Insurance, also known as comprehensive / standard / complete. This means that apart from other users, their own vehicles are covered by insurance. Comprehensive protection is compulsory for vehicles financed by hire purchase by financiers. If the vehicle is exhausted, the owner has the option to use the 3rd party insurance.

Q: What is NCD (Non Claim Discount)?

A: If you did not make any claim within a year, then the insurance company will give you bonus / discount. The percentage is as follows:

• 1st year = 25%
• 2nd year = 30%
• 3rd year = 38.33%
• 4th year = 45%
• 5th year = 55% (maximum)

NCDs can be transferred according to owners from one car to another car as well as from one insurance to another. NCD can also be transferred if you buy a new car.

If you make a claim, your NCD will be lost, meaning you have to buy insurance without getting a discount.

Q: If the car owner has died for 7 years and never renewed for 7 years. Can I renew the car? The owner of the car is still in the name of the person who died and did not change yet. Owner tu my dad.

A: Yes, if you have a letter from the court of law for the heirs. You need to make PUSPAKOM inspection before renewing insurance & roadtax. You only need to contact the PUSPAKOM representative and make an appointment with them to do the car inspection in your home. Upon graduation, the PUSPAKOM will provide you with a letter for you to use for insurance renewal.

Q: Is my car eligible for renewal online? What are the requirements for online renewal?

A: Below is a list of vehicles that NOT have to be online to renew themselves.

          1. Commercial vehicles / used for income generating purposes (bus / truck) - can only be used for personal use
           2. Motorcycle
          3. Insurance ends more than a month
          4. Date will expire more than 2 months
          5. Third party
          6. Total protection over 200k & cc over drp 3.0
           7. Hot model

                     -Toyota Hilux
                    -Isuzu Dmax
                    -Nissan Frontier
                    -Mitsubishi Storm
                    -Mitsubishi Triton
                    -Ford Ranger

If your vehicle is not in the above list means your vehicle is eligible for roadtax online.

Q: What are the benefits of Extension & relationship with NCD

A: Protection such as floods, windsreen and accessories is an extension of comprehensive protection. Comprehensive insurance policies will not cover claims due to floods, accessory thefts or broken mirrors (except for bursts due to severe accidents). So is the tree fallen due to the storm @ uprooted trees but the fallen tree itself due to the old structure or felled. 

Examples of Extensions that can be added to a comprehensive insurance policy:

• Windscreen
• Passenger liability - in accidents involving injury, permanent disability or death, all passengers will be covered by insurance.
• Damage other than accidents, such as:
• flood
• landslide
• Tree branches fall due to a storm
• If you extend and then make a claim it will not reduce / eliminate the NCD.

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