Pay As You Drive Car Insurance

Question: I have forgotten to pay my premium, what should I do?
Answer: You may forfeit the right to make a claim under your policy if you have not paid the premium. The exact details vary with the type of policy involved. Please contact us if you are in any doubt and arrange to make payment as soon as possible. If the premium remains unpaid, we will be obliged by law to cancel the policy.


Question: How is my Motor Insurance premium calculated?
Answer: Motor Insurance premiums in Malaysia are subject to regulation, and all companies are required to use the same basis of pricing. This price is governed by several factors such as the age of the driver, years of driving experience, engine capacity, age of the car and No Claims Discount.

Question: How do I decide what value to insure my car for?
Answer: For a new vehicle, the value chosen should be the purchase price. For older vehicles, you should insure for the 'market value'. Car magazines or your local dealer are a good source of information on this. If you need any help, please Contact Us. An important point to remember is that it is better to insure for too much than for too little - that way you can be sure you will receive full payment in the event of a claim.

Question: What is 'underinsurance'?
Answer: Underinsurance means you insure your property (house, car or whatever) for less than it is really worth. If you do this, the insurance company is usually entitled to reduce any claims payment to you. For example, if you insure your house for RM 200,000 when it is has a true value of RM 400,000, the insurer may be entitled to reduce any claim payment by half (because you have only paid half the premium that you should have done). Therefore, it is important that you set and regularly review values you declare on items you are insuring.

Question: What is a "No Claim Discount" (NCD)?
Answer: If you are insured under a comprehensive motor policy for a continuous 12 month period and there is no claim made on your policy, you will be entitled to a No Claim Discount (NCD) on renewal of your policy. The percentage of NCD increases with the number of claims free years. You will lose your NCD entitlement if you make a claim. If you wish to transfer your insurance but continue to receive a NCD that you had with a previous insurer, you can ask for a letter proving your NCD status from your previous insurer. If you change your car, your NCD can be transferred. If you buy an additional car, however, you cannot apply your NCD to both cars - you will need to build up a new NCD on one of the cars. You cannot transfer your NCD to any other person.
If you have an accident and you are certain that the other party was entirely at fault, you can protect your NCD position by not claiming against your own policy but claiming against the other party. However, it is always best to let your insurer know the situation just in case you need to later claim against your policy (for example, if it turns out that the other party is not properly insured).


Question: What is a 'cover note'? Can I make a claim before my Motor Insurance policy has been issued?
Answer: A 'cover note' is a valid insurance document and provided to customers to provide evidence of insurance whilst their policy is being prepared. If you have an accident before your policy arrives you can make a claim immediately - provided the accident has taken place during the period specified on your 'cover note'.

Question: Why should I insure my vehicle with 'comprehensive' cover even after my car loan is settled
Answer: Even though the lender may no longer require it, it is a good idea to buy 'comprehensive' cover after you have paid off your loan. With this cover, you can be sure that an accident will not cause financial hardship. Without it, you may face a substantial repair bill following an accident.

Question: What is an 'excess'?
Answer: The 'excess' is the amount of money that you - the policyholder - are required to pay for any claim. For example, if your Motor Insurance excess is RM 200, you will have to pay the first RM 200 of any claim and will not be entitled to claim for an accident that results in damage below this amount. Excesses help to keep insurers administration costs lower by reducing the number of small claims handled. In this way they allow insurers to offer lower premiums to their clients.

Question: How is my 'excess' level decided?
Answer: For Motor Insurance, the level of your excess is set based on various criteria (just like the level of the premium - see above). For other classes of insurance, we will be happy to discuss this with you. Often, we are able to offer a discounted premium if a higher level of excess is chosen.

Question: What should I do if I have a motor accident?
Answer: You should take down the vehicle registration number(s) of vehicle(s) involved and the name(s) of other person(s) involved in the accident. Do not admit liability or make any offer to a third party. If you have a camera with you, it is a good idea to take photographs of the accident scene. A police report must be immediately lodged preferably within the next 24 hours at the nearest police station of the accident site. You should notify your insurer immediately (Please see How to Make a Claim). You can also register your claim online or print a claims form from this website (see Online Claims). In the event of an accident to your vehicle, you can call our nearest Approved Workshop for immediate assistance. The accident breakdown services of our Approved Workshops are available
round the clock. Please consult the list of Approved Workshops that is supplied with your policy or call our 24 Hour Hotline on 1-300-880-980 for more information.

Question: How long will my claim take to process?
Answer: Once all the necessary documentation has been obtained and there are no outstanding matters, we aim to provide payment within a maximum of 10 working days.

Question: Is the insurance my bank has arranged for my home adequate?
Answer: Most lenders will arrange a fire insurance policy for their mortgage customers. This is to protect their investment in your home. These policies do not cover your possessions or any improvements you might make to your home (such as curtains, kitchen fittings etc.). You can arrange a separate policy for this. Another fact to remember is that your lender will only be concerned to insure the value of the loan. Over time the cost of replacing your home will increase with inflation and you need to make sure that your policy protection should increase too. If it does not, you could be faced with a shortfall in the event of a claim.