Imagine giving a ride to your colleague from the workplace to her home one evening. As luck would have it, you accidentally hit a car on the way to send her home. As a result of the strong collision, your friend sustains a severe head injury. Even if the incident is unintentional, your friend could take legal action against you because of your driving negligence.
The question is, will your car insurance cover the costs claimed by your friend for her injury?
In order to answer that question, let us understand the legal liability to passengers’ coverage.
Definition of legal liability to passengers’ coverage
Before we go any further, you need to know that legal liability to passengers’ coverage is not included in a basic car insurance policy. This is true regardless of whether you take comprehensive insurance, third-party, fire and theft insurance or 3rd party insurance. You will need to obtain this additional coverage separately with an additional premium payment.
But what is a legal liability to passengers’ coverage?
Legal liability to passengers coverage refers to limited coverage to you or the authorised driver from any legal liability for death or bodily injury of a passenger due to your or the authorised driver’s negligence.
If you have this additional coverage, your insurance will cover the loss of your or the authorised driver’s liability against any passengers carried in your car while boarding, entering or disembarking from it.
Based on the situation in the first paragraph, see the example below to understand how this coverage can benefit you.
Example: Your friend who suffers a serious head injury due to your driving negligence decides to take legal action against you. You are guilty and therefore have to pay the losses to the passenger. If you have a legal liability to passengers coverage, your insurance will cover the losses incurred due to this liability. Without this additional coverage, you will have to pay for the losses out of your own pocket.
Exclusions under legal liability to passengers’ coverage
For your information, this coverage does not cover all situations.
The insurer does not bear the cost of loss in the following situations:
- Death or bodily injury to any passenger being carried for hire or reward;
- Death or bodily injury to any person where such death or injury arises out of and in the course of the employment of such person by You or Your Authorised Driver;
- Damage to property belonging to or in the custody of or control of or held in trust by You or Your Authorised Driver and/or any member of Your or Your Authorised Driver’s Household;
- Liability to any person who is a member of Your and/or Your Authorised Driver’s Household who is a passenger in Your Car unless he/she is required to be carried in or on Your Car by reason of or in pursuance of his/her contract of employment with You or Your Authorised Driver and/or his/her employer;
- Liability caused by a passenger travelling in or alighting from Your Car;
- Any claims brought against You by any driver of Your Car, whether authorised or not;
- Any claims brought against any person in any country in courts outside Malaysia, Singapore or Brunei; and/or;
- All legal costs and expenses which are not incurred in or recoverable in Malaysia, Singapore and Brunei.
For more information, you can refer to your car insurance policy to find out the exclusions for this additional coverage and the terms and conditions.
Is it compulsory to get this coverage?
In Malaysia, it is not compulsory for you to obtain this coverage.
However, if you want to drive your car in Singapore, you are required by Singapore’s law to have a legal liability to passengers coverage.
How much do you have to pay for this coverage?
Basically, the cost of getting this additional coverage is 25% of what you pay as a premium for a basic third-party insurance policy.
Can you make a claim if you carry passengers beyond the maximum limit?
Suppose you carry passengers beyond the maximum limit at the time of the incident. In that case, the liability incurred by your insurance will be limited to the number of passengers specified for the vehicle registered with the Road Transport Department (JPJ).
Therefore, if you carry passengers beyond the passenger limit and run into an accident, your insurance will not pay the claim in full. Instead, your insurance will divide claims made under legal liability to passengers’ coverage according to the formula below:
What are the differences between legal liability to passengers coverage (LLP) and legal liability of passengers coverage (LLOP)?
Do not confuse the two additional coverages mentioned above. The following are the differences between the two coverages in terms of their meanings, examples and premiums:
| Coverage type | Legal liability to passengers coverage (LLP) | Legal liability of passengers coverage (LLOP) |
| Meaning | This cover protects you or the authorised driver from legal liability taken against you for the death or bodily injury of a passenger due to your or your authorised driver’s driving negligence | This coverage protects you from legal liability taken by a third party for negligence committed by your passengers |
| Example | The car you drive runs into an accident that injures your passenger. If the passenger can prove your negligence causes the accident, they can sue you. This cover protects you from the risk mentioned by paying the cost of losses incurred as a result of this liability | Without looking back, your car passenger opens the car door and injures a motorcyclist passing by your car. You can be sued for damaging the rider’s property and injuring the rider. This cover protects you from such liability |
| Premium | 25% of the premium for a basic third-party insurance policy | RM 7.50 per vehicle |
Get the best car insurance coverage
In conclusion, legal liability to passengers coverage protects you or the authorised driver from legal liability taken against you by any of your passengers for injury or death resulting from your or your authorised driver’s negligence. By having this coverage, your insurance will cover the losses due to such liability, limited to the situations covered.
Although this cover is not mandatory in Malaysia, you must get this cover if you wish to drive in Singapore.
If you would like to get legal liability to passengers coverage or other additional car insurance coverages, simply renew your insurance at Bjak and add the coverage needed to your policy. Start by getting car insurance quotes on Bjak’s website for free.
Bjak is one of Malaysia’s biggest insurance comparison websites, offering policies from over 10 brands. Get your free insurance quote from Bjak today!
Read more:
