1st Party, 3rd Party and All Riders Policy
To get your road tax, you require “motor insurance”.
A vehicle without insurance, contravenes Section 90 (1) of the Road Traffic Ordinance ’87.
Basically, there are 3 types of insurance: 1st party, 3rd Party and All Riders’ Policy for motors.
Old cars normally use 3rd Party insurance.
Previously, motorcycles normally use 3rd Party insurance too.
But today, motorcycles are required to have “All Rider’s Policy”.
The geographical areas covered by insurance include Malaysia, neighboring Singapore and Thailand.
What does the insurance policy cover?
1st Party or “comprehensive” cover includes:
1) Loss of theft
2) Damage to one’s vehicle.
3) Damage to the party involved in an accident with your vehicle.
4) Breakage of windscreen – front and rear.
5) Breakage of all glass panels.
6) Injuries suffered by pedestrian, cyclists, motorcyclist etc.
However, it should be borne in mind, that 3rd Party insurance does not cover “loss” or “theft”.
The rate of the 3rd Party is much cheaper than that of the 1st Party.
In insurance, there’s something knows as “excess”.
Say for instance your insurance carry an excess fee of RM300.
This means, when making a claim for say RM500, you’ll only be paid RM200 minus the excess fee of RM300.
What exactly is N.C.B. or No Claim Bonus?
N.C.B. is a form of discount paid to the buyer. The highest of N.C.B. is 55%.
When you meet an accident with another car, always try to get the insurance particulars.
With the above particulars, you could then go to the J.P.J. or hand them your lawyers.
They could then go to the authorities to secure they particulars they want.
Can 3rd Party insurance be converted into 1st Party insurance?
The answer is Yes.
N.C.B. from one Party (3rd Party) can then be converted to the 1st Party.
What do we do should one meet with an accident?
We should make a Police Report and secondly, do inform your insurance company too.