May 3, 2017
Simple answer, yes. At the very least, you must buy and renew a third party car insurance on an annual basis in order to get and renew your road tax for your vehicle. However, there is additional coverage available based on your preferences such as windshield and flood coverage.
Buying third party car insurance is compulsory in Malaysia if you own a car. If you do not own third party car insurance, you will not be able to renew your vehicle’s road tax from Road Transport Department (JPJ) Malaysia. Driving without a valid road tax can cost you penalty in fines up to RM3,000 depending on court’s decision.
A basic third party car insurance offers coverage when you injure someone else in an accident, including his/her physical self and vehicle’s damage. However, you will not be able to claim for loss over your damage on both vehicle and yourself as third party insurance is structured in such a way under a minimal fee.
If you are driving an expensive car, say more than RM30,000, it is safer to buy a comprehensive insurance policy to protect yourself and your car in case of an accident, fire, and theft.
Not owning a third party car insurance and renewed road tax can bring you damages in times you expected the least. Other than getting busted by the authority which can cost you up to RM3,000 worth of fines, you should know that you will be responsible entirely for both your vehicle’s and another party’s vehicle’s damage.
For instance, Ahmad ran the red light and bumped into someone else’s car without any injuries caused. However, he realised that his car insurance is expired and road tax is way overdue while he is on his way to make a police report. As a result, he has to bear the subject’s and his own vehicles’ damages that go up to RM8,000 in total.
Hence, it is wise to keep track of your car insurance and road tax which go hand-in-hand most of the time. During the renewal process, JPJ online service will check any outstanding summons and blacklist records at both JPJ and Polis Diraja Malaysia’s database systems. In order to proceed with this renewal, it is necessary for you to make payment for all your outstanding traffic offences recorded.
Having comprehensive car insurance is even more important for those who are working as freelance ride-hailing services drivers such as Grab and Uber to cover the physical damage of their passengers from unfortunate events.
Look out for more articles on car insurance as we embark to keep you informed and educated on what you need to know when protecting yourself and your vehicle.
Tags: car insurance