Saturday, May 31, 2014

Motor Insurance 101 - What is Comprehensive Cover?

In Malaysia, you have to buy motor insurance in order to get Road Tax sticker.

There are Three types of motor policies 
 
• Third party cover - This policy insures you against claims for bodily injuries or deaths
caused to other persons (known as the third party), as well as loss or damage to third
party property caused by your vehicle.

• Third party, fire and theft cover - This policy provides insurance 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 cover - This policy provides the widest coverage, i.e. third party bodily
injury and death, third party property loss or damage and loss or damage to your own
vehicle due to accidental fire, theft or an accident. 

Like any other insurance product, the more benefits, the higher the premium. Therefore Comprehensive Cover is expensive and some cost-saving guys might consider Third Party cover (especially when you don't need Comprehensive as required by your Hire Purchase financier)

Despite being "Comprehensive", many things are excluded, but can be included with additional premium, e.g.

1) Windscreen
2) Flood, landslide, landslip
3) Driver's liability to passengers
4) Driver's own bodily injury


Reference:
1) InsuranceInfo.com