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.
Hi…may i know..if i use thailand’s car.Can i buy insurance in malaysia??
And what documents i need to bring???
Sorry, you cannot buy insurance in Malaysia, according to an insurance agent friend of mine.
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
For claims on such as yours, you are advised to see your insurance agent who will be in better position to advise you further.
Regarding car insurance policy in malaysia, will it be difficult to buy third party car insurance for old cars, say year1995? Thankscikgu Yap
3rd party insurance for time being appears rather difficult to buy.
really? for thai’s cars cannot buy 1 party insurance in malaysia at all.
That is according my my friend selling insurance.
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.
1st party insurance cover lost and theft. 3rd party insurance does not do the above.
Thank you this site helps me a lot. KEep it up! Cheers! :)
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..
Your friend’s car is fully insured, including the engine. If the insurance company refuses to entertain your claims, get a lawyer.