Motor Car Insurance – 3 Types of Vehicle Insurance in Malaysia

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Motor Car Insurance – 3 Types of Vehicle Insurance in Malaysia

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.


By | 2017-04-26T09:02:19+00:00 September 29th, 2009|Auto Insurance|13 Comments

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13 Comments

  1. jack February 23, 2010 at 1:15 am - Reply

    Hi…may i know..if i use thailand’s car.Can i buy insurance in malaysia??

    And what documents i need to bring???

    • Cikgu Yap February 26, 2010 at 9:54 am - Reply

      Sorry, you cannot buy insurance in Malaysia, according to an insurance agent friend of mine.

  2. jemi June 9, 2010 at 6:11 pm - Reply

    hi cikgu?i would like to know how to make claim loss of uses.as i know,if our car involved in accident,you can claim it.coud u tell me plzzzzzz

    • Cikgu Yap June 12, 2010 at 11:16 pm - Reply

      For claims on such as yours, you are advised to see your insurance agent who will be in better position to advise you further.

  3. hl June 19, 2010 at 9:04 pm - Reply

    Regarding car insurance policy in malaysia, will it be difficult to buy third party car insurance for old cars, say year1995? Thankscikgu Yap

    • Cikgu Yap June 22, 2010 at 2:24 pm - Reply

      3rd party insurance for time being appears rather difficult to buy.

  4. maria June 23, 2010 at 3:53 pm - Reply

    really? for thai’s cars cannot buy 1 party insurance in malaysia at all.

    • Cikgu Yap June 24, 2010 at 3:40 pm - Reply

      That is according my my friend selling insurance.

  5. Sandy March 24, 2011 at 10:25 am - Reply

    Hi cikgu,

    I just bought my 1st car, although it’s only a 2nd hand, I love it!

    Is that the only difference between a 1st & 3rd party, that it doesn’t cover loss or theft? Still confused.

    • Cikgu Yap March 30, 2011 at 9:13 pm - Reply

      1st party insurance cover lost and theft. 3rd party insurance does not do the above.

  6. Sherilyn Pang March 25, 2012 at 12:23 pm - Reply

    Thank you this site helps me a lot. KEep it up! Cheers! :)

  7. saifol July 23, 2012 at 10:27 pm - Reply

    dear cikgu,

    My friend had an accident, which is his car was get into the river. And had some damage in the engine. So he want to claim the insurance, unfortunately he had been told its not covered by the insurance.
    He was so mad, because the car covered by 1st party. Its cost over rm5k if do it under himself..

    • Cikgu Yap July 24, 2012 at 1:15 pm - Reply

      Your friend’s car is fully insured, including the engine. If the insurance company refuses to entertain your claims, get a lawyer.

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