Introduction
The risk of using a car for purposes different from those stated in an insurance policy can create major problems. Insurance protects vehicles based on their specific usage, whether for private, rental, or commercial purposes. Using a vehicle for delivery, e-hailing, or other commercial activities when the policy specifies private use increases the risk of accidents in the blink of an eye and may result in denied insurance claims.
Common Risk Scenarios
1. Private Car Used for E-Hailing or Grab
Many Malaysian drivers fail to realize that using their car for e-hailing without commercial coverage can lead to claims being fully rejected in the event of an accident.
2. Delivery or Commercial Services
Using a vehicle for deliveries or commercial services without an added policy or endorsement also increases the risk of financial loss, as the original policy does not cover these activities.
3. Renting Out a Car Without Notification
If you rent your car to others without notifying your insurance provider, accident claims may be denied.
Tips to Avoid Insurance Risks
- Review your insurance policy and clearly state the intended use of your vehicle.
- Add an endorsement or commercial policy if using the vehicle for business purposes
- Do not change the vehicle’s intended use without insurer approval
- Keep documentation if any change in vehicle usage occurs
Conclusion
The risk of using a car for purposes outside its original policy often causes insurance claims to be denied. Therefore, Malaysian drivers should review and adjust their policy before any additional use, ensuring the vehicle stays fully covered even if an accident happens in the blink of an eye.
Read More:
Important to Check Your Policy Before Renewal
