Bjak | Motor & Car Insurance | Renew Roadtax | Insurans Kereta

Understand Your Motorcycle and Car Insurance

Things you must know about Roadtax / Motor Vehicle License (MVL)

Roadtax is compulsory - The Road Transport Department (RTD) requires all vehicle owners to have a valid MVL which is also called as roadtax in order for vehicles to be used on the road.

Insurance is required to renew roadtax - A vehicle owner must renew the insurance and roadtax before it reaches its expiry date.

Vehicle owners are encouraged to renew motor and car insurance & roadtax within 2 months before the expiry date.

Importance of Motor and Car Insurance

Having car insurance is important for the future good. Through insurance coverage, a vehicle owner will not feel overburdened if something happens to themselves or the vehicle, later. At least the cost will be covered by the insurance company which indirectly lessens the burden of the owner.

Types of insurance policies

First party / comprehensive

Provide the most comprehensive protection. You will be covered for accidents, fire and theft. The insurer will also cover (pay the cost) if an accident happened to your car and the party you hit. This policy is suitable for vehicle purchased below 10 years.

Third party, fire, and theft

Provide coverage to your own vehicle if your car gets caught in fire, or gets stolen. If an accident happened (and you’re at fault), you will need to repair the car with your own money while the car you hit will be covered by your insurance company.

Third party

Most basic policy. Only covers the third party involved in the car accident. No protection will be provided in the event of an accident (alone), theft or fire. Depends on the insurance approval.

The sum insured for the car / motor

Sum insured is the maximum amount a vehicle to be insured according to the current market value. Click here for your reference.

The sum insured can be determined by two different values:

Agreed value - The amount which has been agreed both by the vehicle owner and insurance provider based on the car’s model and year.

Example: If the amount insured is RM35,000 and an accident occured, the insurance company will give full compensation of RM35,000.

Market value - To put it in the simplest words, market value is defined as how much your car is worth before the damage occurs.

Example: If the amount insured for the car was RM35,000 and the market value for the car during the accident drops to RM30,000, the insurance company will pay compensation, depending on the market value of RM30,000.

NCD (No Claim Discount) rate for car and motor

NCD is the discount given to you if no claim has been made under your policy with the current insurer during the year. The rate of your NCDs will be increasing if there is no claim made by you in the following year.

Rates for cars and motorcycles vary as below:

NCDs rate for car:

1st year - 0%
2nd year - 25%
3rd year - 30%
4th year - 38.33%
5th year - 45%
6th year and above - 55% (maximum)

NCDs rate for motorcycle:

1st year - 0%
2nd year - 15%
3rd year and above - 20% (maximum)

However, if you have earned 55% NCD and eventually you made a claim during that year, your NCD rate will be back to 0% the following year.

How car insurance price are being determined

Premium* =
Basic premium — No-Claim Discount (NCD) + additional coverage + SST + stamp duty

* Premium means the price of the insurance you have to pay.

Other additional insurance coverage to be considered

Below is a list of additional insurance coverage commonly offered by most insurance and Takaful companies. However, the terms and conditions of each insurance and Takaful company may differ from each other:

Named Driver
All Driver
Natural Disaster (Special Perils)
Strike Riot and Civil Commotion
Passengers coverage
Personal Accident

Ways to choose best insurance for your car or motorcycle

Renew your car or motor insurance earlier than the expiration date.

Compare the prices.

Renew your car insurance at as let the users compare the price with more than 10 insurance companies.