What is a Third Party, Fire & Theft?
The Third Party, Fire and Theft allows you to claim damages to your car due to fire or if your car is stolen. This policy is underwritten by Zurich General Insurance Malaysia Berhad and provides protection for Private Cars only.
What exactly does it cover?
Loss or damage to your own car in the event of fire, explosion or lightning, burglary, housebreaking or theft.
However, the policy also provides you with optional covers and benefits such as:
- Basis of settlement (how your claim is being settled)
- Towing Costs (to a repairer or safe place) up to a maximum of RM200
How do we make settlement?
You can choose how to settle your claim from the following options:
If your car is economical to repair, the insurance company will arrange for the car to be repaired at their approved repairer and pay for the cost of repairing.
If your car is not repairable or economical to repair, you will be paid to the maximum amount or you will be a offered a settlement sum equivalent to the Market Value of your car. The insurance company may also opt to replace your car with one of the same make, model and age of your car at the time of loss. Do note that the policy will be terminated once payment or replacement are made.
If replacement parts are required to repair your car is not available in Malaysia, you will be paid for the loss of damage in cash based on:
- The last known parts price list issued in Malaysia or the price at the manufacturer's production plant and include reasonable cost of transportation to Malaysia (excluding cost of air freight); and
- The reasonable labour cost of fitting such replacement parts in Malaysia.
If your car is stolen and not recovered, you will be paid based on the market value of your car at the time of the loss or the Sum Insured, whichever is lesser. Do note that the policy will be terminated upon payment.
How much should I insure my car for under the Third Party, Fire and Theft?
You should insure your car at its current market value. A good gauge would be the current cost to replace your car with another car of the same make, model, age and general condition. The amount you choose to insure is called the Sum Insured.
Please note that you could be penalised if your car is under-insured by 10% when compared to the market value. To avoid wasting money from being over-insured and penalised when under-insured is to opt for the sum insured determined by a market valuation system (approved by Persatuan Insurans Am Malaysia - PIAM).
How does the No Claim Discount ( NCD) work?
With this coverage plan, you will get to have NCD that will progressively increase the longer you have the policy without any claims. The first full year of being a policy holder with no claims will earn you a 25% discount.
That value will increase every year for the next five years that no claims are made. In the fifth year that you are subscribed to the policy with no claims you will receive a discount of 55%.
What are some of the key T&C’s that I need to know?
There are a few that you might want to take note of. First of all, you will need to disclose all material facts and details pertaining to your car, upon the registration for this policy. For example, previous accidents, modifications made to the car or engine and etc.
You also need to ensure that your vehicle is insured at the appropriate amount according to the market value of the car. Lastly in the case, you need to draw on insurance due to an accident. There will be an excess penalty if the vehicle was driven by a person not named, having a P” and “L License, or under the age of 21. The amount is set at RM400.
Where can I find more information?
If you have any enquiries, please contact:
Zurich General Takaful Malaysia Berhad
Level 23A, Mercu 3
No. 3, Jalan Bangsar, KL Eco City,
59200 Kuala Lumpur, Malaysia
E-mail : [email protected]