How To Transfer Vehicle Ownership In Malaysia
But making a transfer of ownership can be rather a difficult endeavor. A friend of mine, Mr. Ong sold his jalopy some 18 years ago. Rather recently, Mr. Ong came to seek my assistance. He laments, the car which he sold a decade ago it yet in his name still.
The story has it that legal action now is being taken against him. The owner who bought the old car had not bothered to take the necessary steps to transfer the vehicle.
Anyway, this has resulted in a gain for my friend. In the recent rebate exercise, Mr. Ong went to the Post Office to claim his RM600. Believe it or not, he was still the rightful owner of the vehicle after 18 long years.
In my opinion, many motorists do not know the correct procedures to adopt when selling a vehicle. What they normally do is:
i) Sign the MV3 form.
ii) Provide 2 copies of their MyKad to the new owner.
iii) Hand the Registration card (blue book) to the purchaser or finance company and that’s about it.
They should in fact:
i) Inform in a letter to the Registrar of Motor Inland Vehicles (R.M.I.V) of the sale
ii) Inform the Police authorities of the sale too.
iii) Inform the insurance company of the sale as well.
Ideally, a simple agreement should then be concluded between you and the purchaser of your car.
In it, state that as from henceforth, you are no longer liable for:
i) Any traffic offences that might be caused by the said vehicle.
ii) For any accident which might involve the vehicle which is registered under your name.
The simple piece of paper, which represents an agreement, should ideally also be stamped at the Stamp Office in your town nearby. The total cost does not involve more than RM10.
This simple agreement above might not provide you full protection against legal actions, but believe me, it goes a long way.
But the point is, how many motorists and drivers know the procedures? And yet, how many more bother about the hassle?
Unless you are like me, who is very interested in all things legal, and who possesses a Registrar of Companies for a brother, I believe most people will not bother too much about the correct manner to adopt when selling off an old vehicle. This is where they get into trouble with the law.
But instructing you on the proper way to get a vehicle transferred from A to Z will be worth the while. It might very well assist you from being taken to court by some quarters, especially the law.
First, go to the nearest J.P.J. office. Get a set of transfer forms needed. The forms will consist of:
i) Borang Semak (TM3).
ii) Transfer of ownership form (JPJK3A).
iii) Form to certify new ownership.
Fill up the form and sign it wherever necessary.
The new owner’s identification card or MyKad have to be certified by:
i) An officer of the Transport Department.
ii) A Commissioner of Oaths.
iii) A Justice of Peace of J.P.
iv) A Judge from the Session Court.
If you wish to save some money, you could go to J.P.J. office. An officer there will help you certify the above documents.
The next step after completing the transfer form is to bring your vehicle to the Puspakom authorities. There is such a facility at Kampung Jawa, Klang. The working hours are from 8:00 am to 6:00 pm.
Puspakom officials will conduct a 10 point check on your car. Ideally, your car should be in a fairly good condition to pass the test. Owners are advised to send their vehicle for servicing prior to sending them for inspection purposes.
Puspakom authorities will supply owners with a K5 certificate. This certificate will then enable one to do the transfer of a car with the J.P.J. authorities.
Inspections can be completed around 1 – 2 hours. Sometimes if delay occurs, it might take a little bit longer.
In case you wish to know, it costs RM35 – RM50 to do an inspection exercise.
Completion of Puspakom’s tests will lead you next to the following steps. This is known as insurance purchase. The new owner has to purchase new insurance in order to do the transfer.
Experience tells me, a RM8000 first party insurance will come to around RM550. However, scout around. Some insurance may charge slightly lower prices.
Having completed the insurance purchase, you are ready next to submit the transfer form to the J.P.J. for transfer.
A word of reminder though, the transfer itself requires a fee of RM100. You can pay cash at the counter.
Make sure you check your Senarai Semak to see all the relevant sections of your transfer form has been duly completed.
Armed with all the above forms, go to the transfer section of any J.P.J. office to do your transfer. You should face no difficulty at all.
Officials and staff of the J.P.J. are courteous, friendly and ever ready to assist you wherever they can. As a reminder again, the transfer fee is RM100.
Transfer can sometimes be done within the day itself. At times, the J.P.J. might need to detain your transfer documents in order to certify certain particulars.
That being so, the authorities might have to issue you with a photostat copy, duly signed by its officers for your temporary use. You will be asked to come back later for your new registration card or vehicle card.
To end this article, I wish to inform you that “middle men” demand as much as RM450 – RM500 for such a transfer. Should you think the amount is worth paying for such a job done, by all means, you could engage their services.
Considering the procedures one has to go through, my personal opinion is, “I think it is worth all the hassle a middle man has to go through in trying to get your vehicle transferred.”
He has to live also right?
If after all these detailed explanations regarding how to conduct a vehicle transfer with the J.P.J., you still possess problems, feel free to put your question in the comment section below.
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10 Ways To Get Yourself In Trouble Driving In Malaysia
1) Driving Without A Driving License.
Have you committed an offense? Yes, you have.
Section 26 (2) of the Road Transport Act 1987 clearly reiterates, “a person should have a valid driving license”, if he or she wishes to drive.
2) Ignorance is not bliss.
Being a new driver, say a “P” driver, you are unfamiliar with the area and you inadvertently entered a “no entry” road. You are stopped by a traffic cop.
You begin pleading with the officer. Your attempts to convince the officer of your ignorance failed.
Can the officer summon you?
Unless the cop is willing to excuse you, you are in for trouble. The law is, “ignorance is no excuse”.
3) Driving with no number plate at the rear.
Does it represent an offense should you drive with no number plate at the rear? Assuming your car number plate is about to drop off. You then place it in your booth.
Can you drive your car into town? The answer is “No”!
Such action by drivers, tantamount to an offense. Unless the good officer is in his good mood, you can expect to be slapped with a summons. So, you are advised to refrain from driving should you be faced with such a predicament.
Call a taxi, it is cheaper than getting fined.
4) Driving without seat belt on.
Many drivers drive off without a seat belt on. Many traveling a short distance, they then attempt to put their seat belt on. This is not only wrong, but dangerous as well.
If while you are attempting to wear your seat belt, you are seen by a traffic police, can he summon you? Indeed, he could!
At the moment the officer saw you and you weren’t wearing a seat belt, prepared to be pulled over and issued a summons.
It’s no use arguing your way out. Section 119 (2) of the Road Transport Act 1987 again reiterates it is an offense. A RM300 fine awaits you.
So, wear your seat belt first before driving off. Ensure this good driving is enshrined in you as one of your good habits of driving.
5) Crossing a traffic light when the lights turn yellow.
The above has always remained a contention with many drivers. Right or wrong? Those well versed with the law tend to argue it is right. They claim “follow through”.
Though a driver could possibly claim the above, but remember, you will have to be summoned first and later appear in court to fight you case. Personally, I think it is going to be a hassle.
The authorities nowadays have officers riding in big Perdana official cars stationed at traffic lights. If you are unlucky, you may have one of these cars tail you while you are crossing during yellow lights.
A friend of mine got a summons issued by the J.P.J. just recently. My advice is, slow down when seeing yellow lights. Avoid getting a summons. That’s the best advice which can be given to you.
6) No tail lights or number plate light.
Many drivers are not aware that a car without tail light is an offense. The tail lights are intended to light up the number plates of a vehicle. It is an offense of these lights are not working.
So, please check this light from time to time to avoid being booked as an offense.
7) Driving at night with a cabin or interior light on.
Many are not aware, it is an offense to drive vehicle with its cabin light on. With the cabin light on, it will distort the vision of on-coming drivers. This could lead to accidents happening.
So, do try not to put on the cabin light while you are driving as this may lead to accidents.
8) Not giving way to ambulance, police, J.P.J., customs and fire brigade.
Failing to give way to the authorities is considered an offense. Although the offense carries with it a RM300 fine, at the end of the day, drivers are taught that they should give priorities and right of way to public service vehicles which are out to save lives during emergencies.
9) Driving with tyres without treads.
To drive with tyres that are bare or without treads is considered as an offense. A driver who fails to look after his vehicle tyres has violated Section 119 (2) of the Road Transport Act 1987. Committing this offense will get you a RM150 summons.
10) Driving with license that is suspended or banned.
Can a person drive if his or her license is suspended or banned? The answer is “No”!
To drive with a suspended or banned license is an offense. This is violation of the Section 38 (2) of the Road Transport Act 1987. It is a RM2000 fine plus a 6 months imprisonment.
So drivers beware, do not attempt to drive while under suspension or with a driving license that is banned.
Most drivers are unaware that these 10 simple driving offenses are committed by many drivers. Be wary of it so as to avoid being summoned unnecessarily by the authorities.
The Perils Of Old Vehicle Owners In Malaysia
Why Should Owners Of Vehicles Over 10 Years Old Be Forced To Purchase 1st Party Insurance Cover?
To purchase insurance coverage for your old vehicle today has become a big hassle. Pensioners, kampung folks and those of the lower income groups own second hand cars. The number of vehicles in this category is rather large.
When the government announced its intention to scrap off cars over 15 years and above, it met with much objection. The 30,000 strong member of Volkswagen Club was amongst one of the group to voice its vocal objection.
And what happened eventually, the National Automotive Policy (N.A.P.) did away with its suggestion to make it mandatory for all cars over 15 years of age to undergo tests by the Puspakom authorities prior to the issuance of the annual road taxes.
And what are the old cars owners facing today?
After the N.A.P. issue subsided, we are again today faced with yet another colossal obstacle – 1st party insurance coverage for old vehicles.
If you happen to own a vehicle and its road tax has expired recently, most probably you will have to face the difficulty of getting 3rd party insurance coverage for your vehicle.
The motor insurance industry today is in a kelam-kabut situation. Be reminded that years ago, an old vehicle needed only a 3rd party insurance costing RM50 – RM70. Yes, insurance coverage was compulsory.
But today, we are held to ransom by the huge insurance companies that old vehicles should purchase 1st party insurance of at least RM8000.
Last year, we were held to yet another compulsory decision by the insurance companies. Whereby they forced those who wish to purchase 3rd party insurance to purchase a Personal Accident Policy of RM10,000.
Why should we as Malaysian and living in a democratic country succumb to such demands by insurance companies?
Insurance companies, like other trading companies and traders doing a business are given the license to operate. If unable to deliver what the customers demand or desire, then they shouldn’t be running such businesses.
Insurance companies claim they are making a loss by insuring old vehicles. Issuing 3rd party insurance for old vehicles is part and parcel of their business.
If insurance companies feel they are not able to provide the coverage, then it is suggested that they should “wind up” their business, go to China and sell shoes instead.
Insurance selling is a big and lucrative business here in Malaysia. But selling shoes to the billions of Chinese people in China is a better and much more lucrative business then selling insurance over here.
To these companies, the advice is – diversify!
What would happen if big insurance concerns refuse to sell 3rd party insurance to use old vehicle owners?
The problem can be solved rather easily. Let Pos Malaysia, which has thousands of post office branches all across the entire nation take over the selling of 3rd party insurance.
When the government implements such as decision, insurance companies will then stand to loose much of their market in the insurance section. Only then will they realize how vital the 3rd party insurance is to them.
Regards to the topic of 3rd party insurance, which affects thousands of drivers with old vehicles in Malaysia, I have kept a clipping in my files entitled “New 3rd party insurance rate for old vehicles” dated 7th July 2009.
In the article, it was stated, “a new tariff for 3rd party insurance is being drawn up, following insurance firms’ refusal to offer coverage to vehicles that are more than 10 years old.
Deputy Finance Minister, Datuk Chee Heung said, “Bank Negara was reviewing the rate to come up with a premium that was acceptable to all”.
Come on Datuk! I’m sure it does not take more than half a year to come to a simple decision.
Don’t forget dear Datuk, when the Rakyat gets annoyed, they know what to do in the next general election!
So think about it and come out with a good and speedy solution or else…
Just yesterday, an old friend of mine had to fork out a sum of RM380.20 premium for his 1988 old Mercedes Benz.
And the insurance? A 1st party insurance policy for RM8000!
Whether our old cars need 1st party insurance or otherwise, let the owners decide! Not the insurance companies.
