Do you know that it is unlawful under the Road Transport Act 2010 for a person to drive or to permit someone else to drive a car without a valid certificate of insurance? Now you do.
So, what should I do?
The fundamental thing you can do is by getting a third-party insurance for your car. This policy indemnifies you for the amount you are legally liable to pay due to death or bodily injury to third party or damage to third party property.
The total liability for causing physical pain or fatality to third parties is unlimited, whereas for engendering damage to their property is up to RM3 million.
What is the duration of coverage?
The policy is renewable annually, effective from the moment you make an upfront payment to the insurer.
How much total premium do I have to pay?
First you need to determine the market value of your vehicle so as to avoid OVER or UNDER insured.
After finding that one out, you will need to consider few other variables such as your car cubic capacity, no-claim discount (NCD) entitlement and the underwriting requirements of the insurance company.
With the de-tariffication of motor insurance there will be a few more factors involved in the calculation of your claims, including certain driver details as follows;
- Type of vehicle
- Engine capacity
- Sum insured
- Age of Driver
- Gender of Driver
- Occupation or Education of Driver
- Place of Residence
- Driver claim history
How to make the payment?
As this is a cash-before-cover policy, the payment must be made in advance by way of cash, credit card or cheque (should be made payable in the name of PROGRESSIVE INSURANCE BHD).