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October 10, 2024
Claims, Repairs and Disputes: Everything you need to know
October 26, 2024Purchase The
Right Coverage
#YouOttoKnow: How to choose the
right motor insurance or takaful
With nearly 600,000 accidents reported in Malaysia in 20231 alone, it would be a good idea to examine your current policy/certificate to make sure you have enough coverage in the unfortunate event that you meet with an accident.
Here’s a guide on how you can navigate the world of motor insurance/takaful with confidence!
Ot-to Guide 1
Did you know?
Motor Insurance is mandatory for all vehicles using Malaysian public roads under the Road Transport Act 1987.
Why insurance is more than just a legal requirement
Insurance/takaful is not only your financial shield against motor-related accidents, where the damage to your vehicle can be very high. It is also a measure to make sure that those who are involved are also given protection.
Financial protection against mishaps
From unexpected accidents to medical complications, these unpredictable events can put a strain on the future you’ve carefully built.
Accident aftermath
Fender bender or
major crash?
Relax, your
insurance/takaful covers repair costs, saving you
from hefty bills.
Third-party protection
Bumped into someone’s
car or property?
Don’t sweat it. Your insurance/takaful operator will handle the claims, shielding you from potential legal hassles and potential payouts.
Medical attention
Ever wondered what happens if an accident leaves you needing
medical attention?
Don’t worry. Your insurance/ takaful operator will handle any claims for medical expenses incurred by third party(s) arising from the accident.
Ot-to Guide 2
Choose your coverage!
There are 3 different types of motor insurance/takaful available. Understanding the 3 basic coverages helps you choose the right protection for your vehicle.
Tailoring your coverage
Car insurance has evolved from one-size-fits-all to fitting for your specific needs. Discover different types of coverage, each with its own advantages and costs.
Third Party Cover
This policy/certificate covers you against claims for bodily injuries or deaths caused to other persons (known as the third party), as well as damage to third party property caused by your vehicle.
Third Party, Fire & Theft Cover
This policy/certificate provides coverage against claims for third party bodily injury and death, third party property loss or damage, and loss or damage to your own vehicle, due to accidental fire or theft.
Comprehensive Car Insurance/Takaful Cover
Comprehensive car insurance/takaful coverage is the only one that covers damage to your own vehicle in an accident. However, eligibility may depend on the car’s age and other factors. Do check with your insurance/takaful provider.
Add-on covers
Ot-to Guide 3
Know the limits
Even comprehensive coverage has exclusions and limitations. Explore add-on options offered by your insurer/takaful operator to customise your protection according to your needs and risk profile.
Points to consider
Beyond add-ons, choosing the right insurer or takaful operator in Malaysia is crucial. Here are some considerations when choosing an insurer or takaful operator.
Network coverage
Transparency
Ensure the claims process is clearly outlined, with readily available information on procedures and documentation requirements.
Track record
Claims processing
Customer service
Product relevance
Ot-to Guide 4
Premiums and risks
Your driving history and past claims can impact your premiums/ contributions. A good risk profile (consistent safe driving) generally leads to lower rates, while frequent claims can lead to higher premiums/contributions due to higher assessed risks.
As established, motor insurance/takaful isn’t one-size-fits-all.
Don’t be afraid to delve into the details, and seek clarifications for any confusing terms and answers to lingering doubts. Remember, there are no bad questions when it comes to safeguarding your interests. By actively seeking information, you’ll gain a deeper understanding and be able to make the best decision based on facts.
7 key takeaways on choosing a motor insurance/takaful plan
Beyond add-ons, choosing the right insurer or takaful operator in Malaysia is crucial. Here are some considerations when choosing an insurer or takaful operator.
Prioritise coverage/protection needs
Tailor your coverage/protection to your individual risk profile, car value and driving habits.
Compare options thoroughly
Don't settle for the first quote or cheapest option you get!
Customise your coverage
Consider adding relevant add-ons to enhance protection, such as roadside assistance, special perils, windscreen cover, waiver of betterment, and so on.
Choose a suitable insurer/takaful operator
Prioritise efficient claims process, financial stability and excellent customer service.
Review your coverage/protection
As your needs and circumstances change, adjust your coverage/protection accordingly.
Transparency is key
Understand the inclusions, exclusions, and claim settlement process before you commit.
Ask questions, clarify doubts
Don't hesitate to consult an insurance/takaful agent or advisor. They can help you navigate complex options and tailor a plan that meets your specific needs.
Remember, choosing the right motor insurance/takaful is an investment in your peace of mind and financial security. By following these tips and doing your research, you can hit the road with confidence, knowing you’re prepared for whatever journey life throws your way.
Reference:
1. The Star (2024, January 1). Nearly 600,000 road accidents will be recorded in 2023, says Bukit Aman. https://www.thestar.com.my/news/nation/2024/01/01/nearly-600000-road-accidents-recorded-in-2023-says-bukit-aman
This article is part of a ‘Jom, Level Up’ campaign under Phased Liberalisation 2.0, Consumer Education Programme (CEP), by Persatuan Insurans Am Malaysia (PIAM) and Malaysian Takaful Association (MTA).
Disclaimer: The information is provided for general information only. PIAM and MTA make no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.