You may have wondered about this – Since other types of insurance is not mandatory in Malaysia, would the same apply to the insurance for my vehicle? The short answer to this question is, No. Sorry to burst your bubbles but car insurance is mandatory in Malaysia! What is different about car insurance anyways? Let’s find out!
Did you know that if you do not own third party car insurance, you will not be able to renew your vehicle’s road tax from the Road Transport Department (JPJ) Malaysia? Depending on the court’s decision, driving without a valid road tax can cost you a penalty in fines up to RM3,000 under Section 14(4) of the Road Transport Act (RTA) 1987! This penalty is on top of another hefty penalty for not renewing your car insurance. Fines under the Road Transport Act 1987 could go up to RM 1,000 with a potential three years in prison if you’re caught driving without it. Yes, ouch!
The reason for mandating car insurance purchase, you ask? No matter how skilled a driver you are, a million things could happen on the road which are beyond your control! A basic third party car insurance offers coverage when you injure someone else in an accident, including his/her physical self (e.g. any medical claims for any of their injuries) and vehicle’s damage (e.g. repairs for damage to the third party’s car).
Do note that car insurance does not cover any of your own bodily injuries due to an accident. A separate personal accident insurance policy will be required for that purpose. If you are driving an expensive car, it is advisable to buy a comprehensive insurance policy to protect yourself and your car in case of an accident, fire, and theft.
We suggest you keep track of your car insurance and road tax as they go hand-in-hand for most of the time. It is also worth noting that JPJ online service will check for any outstanding summons and blacklist records at both JPJ and Polis Diraja Malaysia’s database systems during the renewal process. In order to proceed with this renewal, be sure to make payment for all your outstanding traffic offences recorded!
Do a quick check if your car insurance is still valid today! If not, better arrange to get your car insurance renewed as soon as possible before the authorities knock on your door and cause you further complications!