Four Things Your Motor Insurance Policy in Malaysia Won’t Cover

1. Four Things Your Motor Insurance Policy in Malaysia Won’t Cover Road accidents cost Malaysia an estimated RM9.21 billion in 2016. The number of fatalities and vehicles damaged in accidents is increasing every year. Malaysian Transportation Ministry has also expressed concerns over the spike in the number of fatal motorcycle accidents. Apart from driving safely and improving driving skills, it makes sense to purchase motor insurance for the vehicle you drive. However, Malaysians have the bad habit of not reading the ?Terms and Conditions? of motor or motorcycle insurance policies while buying them from an insurance company or online. Here are the things that your insurance policy might now cover and you must know that. Your own death or bodily injury Remember, motor insurance is a car insurance coverage and not a life insurance. Don’t expect your motor or motorcycle insurance, not even the comprehensive coverage, to cover your own death or bodily injury due to an accident. You won’t get any compensation from your insurer for hospital stay or funeral benefits by showing your motor insurance policy. Your liability against claims from your passengers You will not be protected against legal claims made by passenger if any bodily injury, death or property damage occurs in an accident. You can add legal liability against passengers in your coverage to protect yourself if passengers sue for negligence driving. In this case, your yearly premiums will also increase. Vehicle depreciation rate On an average, a new car loses nearly 19 percent of its value in its first year of ownership. In fact, a vehicle’s value decreases as soon as it leaves the showroom. Car depreciation rate decreases with each successive year due to wear & tear, breakdown, and technical or mechanical failures. Motor vehicle depreciation has a big impact on car insurance premiums. Whenever you make a claim in motor insurance, the payouts will be made by the insurer after considering the reduced value of the vehicle based on their rate of depreciation.

2. Vehicle damage or loss due to natural disaster Standard motor or motorcycle insurance policies do not cover loss or damage caused to your vehicle due to natural disasters, such as earthquake, flood and landslides. However, you can extend your policy to cover this and pay higher premiums. Evidently, it is essential that you insure your vehicle appropriately. Your insurance policy document will highlight everything – what is covered and what is not. If needed, take additional coverage to avoid under-insurance but also make sure you are not over-insuring your motor vehicle. Simply do not waste money, neither by taking wrong insurance policy nor by providing claims from your own pocket for which you could have insured yourself. In a nutshell, do not be afraid to ask questions to your insurer and understand your policy thoroughly before buying your motor insurance.

3. Four Things Your Motor Insurance Policy in Malaysia Won’t Cover Road accidents cost Malaysia an estimated RM9.21 billion in 2016. The number of fatalities and vehicles damaged in accidents is increasing every year. Malaysian Transportation Ministry has also expressed concerns over the spike in the number of fatal motorcycle accidents. Apart from driving safely and improving driving skills, it makes sense to purchase motor insurance for the vehicle you drive. However, Malaysians have the bad habit of not reading the ?Terms and Conditions? of motor or motorcycle insurance policies while buying them from an insurance company or online. Here are the things that your insurance policy might now cover and you must know that. Your own death or bodily injury Remember, motor insurance is a car insurance coverage and not a life insurance. Don’t expect your motor or motorcycle insurance, not even the comprehensive coverage, to cover your own death or bodily injury due to an accident. You won’t get any compensation from your insurer for hospital stay or funeral benefits by showing your motor insurance policy. Your liability against claims from your passengers You will not be protected against legal claims made by passenger if any bodily injury, death or property damage occurs in an accident. You can add legal liability against passengers in your coverage to protect yourself if passengers sue for negligence driving. In this case, your yearly premiums will also increase. Vehicle depreciation rate On an average, a new car loses nearly 19 percent of its value in its first year of ownership. In fact, a vehicle’s value decreases as soon as it leaves the showroom. Car depreciation rate decreases with each successive year due to wear & tear, breakdown, and technical or mechanical failures. Motor vehicle depreciation has a big impact on car insurance premiums. Whenever you make a claim in motor insurance, the payouts will be made by the insurer after considering the reduced value of the vehicle based on their rate of depreciation.

4. Vehicle damage or loss due to natural disaster Standard motor or motorcycle insurance policies do not cover loss or damage caused to your vehicle due to natural disasters, such as earthquake, flood and landslides. However, you can extend your policy to cover this and pay higher premiums. Evidently, it is essential that you insure your vehicle appropriately. Your insurance policy document will highlight everything – what is covered and what is not. If needed, take additional coverage to avoid under-insurance but also make sure you are not over-insuring your motor vehicle. Simply do not waste money, neither by taking wrong insurance policy nor by providing claims from your own pocket for which you could have insured yourself. In a nutshell, do not be afraid to ask questions to your insurer and understand your policy thoroughly before buying your motor insurance.