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Understanding Your Car Insurance & Claims ( 2016-12-14 )

It is very exciting to get a new car, but bear in mind that car insurance comes hand in hand with your new car. With the increasing numbers of car accidents over the year, it is important to get your fact right with car insurance and claims. Insurance protects you against claims made by those who have suffered personal injury or damage to your car. You can never escaped from getting a car insurance, even if you are a careful driver because there is always risk for an accident to happen. In order to stay protected, many drivers are looking for the best insurance plan in hope to reduce their financial burden when accident happens.

Insurance Coverage

Insurance coverage is vital for you and your new car, it outlines what is covered and what’s not in the event of car accident. With so much insurance company are trying to outshine against each other, you need to be attentive on the outline of insurance plan, take note on coverage of accident that caused by a third party and self-inflicted damage. Car buyers should take note whether is your insurance covers Return to Invoice – Guaranteed Asset Protection (RTI-GAP)? RTI-GAP ensure you would not have any problems covering your outstanding hire purchase loan if your car is stolen or declared total loss in the event of accident. Usually RTI-GAP would help you to replace your damaged car with a new car of the same brand.



NCD stands for No Claim Discount. NCD is discount offered by car insurers to car owner who have not made any claimants within a year or more. The longer the car owner do not make claims, the better the discount one can get. NCD also indicates the reduction of premium that car owner have to pay the following year.

Take note that NCD is tied to car owner’s name but not a car. NCD is transferable to another car, however NCD level will drop one level each year when one does not transfer to another car upon selling his previous car.

When one make claimant insurance during the period of coverage (exception to windscreen and No Fault Own Damage claim), the NCD will be forfeited and become 0%, which means you have to restart the accumulation of discount all over again.


Here are the summary of claimant that you are entitled when purchase car insurance. Car owners may also purchase comprehensive cover at additional charges. You are entitled for third party claim when you are not at fault when accident happens, you can keep your NCD entitlement. Own damage claim meaning making a claim against your own insurance, which will causes you to lose your NCD.



What is not covered in car insurance policy?

1. Your own death or bodily injury.

There will be no hospital stay coverage or funeral compensation when one was caught in an accident. Only personal and life insurance will covers death and bodily injury by compensating medical expenses up to RM50,000 and accidental death up to RM5 Millions depends on what insurance agency that you go for.

2. Theft of non-factory fitted vehicle accessories.

Any added on accessories like car stereo, leather seating, third party skirting, bumper, sports rims and etc are not covered when they got stolen. You are on your own to repair and replacement for these added parts.

3. Betterment

Betterment means the process of repairing old and damaged car parts with new parts. This usually varies with different insurance policy, however it will be in accordance to different insurance agency standard terms and conditions.

4. Flood and natural perils

A standard comprehensive policy does not flood, typhoons, landslide,earthquake and other natural perils. If your car is damaged due to flood or other natural disasters for that matter, your insurance cover will not be compensating you for the loss. Only additional policy that covers special perils.

Conclusion, it is important to know what are inclusive in your car insurance plan. With comprehensive cover, you are able to enjoy the same coverage with Third Party, Fire and Theft policy but with added coverage onto the damages to your own vehicle. However over insure is simply waste of money whereby the maximum value you can claim is at its market value. It is very important to insure your car with the appropriate insurance accordingly to maintain its current market value. When accident happens, always stay calm and do not panic. You can take a picture of the damage, take down particulars of the other party such as car plate, name, NRIC and contact number in order to follow up the insurance procedure. Call up your insurance agent and ask for their advices. Lastly, you can lodge a police report at the police station near you. Always drive safe and remember it is better late than never.

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