Third Party, Fire & Theft (TPFT) Car Insurance

TPFT stands for Third Party, Fire and Theft. It is a motor insurance policy that covers two things: your legal liability to other people (the "third party" part), and loss of or damage to your own vehicle caused by fire or theft (the "fire and theft" part).

What it does not include is the defining feature: damage to your own car in an accident. If you collide with another vehicle, a wall or a tree, TPFT pays for the other party's losses and nothing for yours. PIAM's "Motor Insurance Types & Coverage in Malaysia" guide lists TPFT as one of the three standard private-car covers alongside Comprehensive and Third Party, and its coverage grid shows exactly one difference between TPFT and Comprehensive: the row for "loss or damage to your own vehicle due to accident".

Third-party liability

• Death or bodily injury to other people - unlimited
• Damage to other people's property - up to RM3 million
• Legal costs of defending a claim, within policy terms

Your own car - two perils only

• Theft of the vehicle, including attempted theft damage and theft of fitted parts where the policy wording includes it
• Fire, lightning and explosion - including a fire that starts in another vehicle or building and spreads to yours
• Payout up to the sum insured, which is typically based on the car's market value (though some insurers may occasionally offer an Agreed Value basis).

Excluded outright

• Accident damage to your own car - collision, overturning, hitting an object - regardless of fault
• Flood, storm, landslide and other natural perils
• Windscreen, windows and sunroof
• Vandalism and malicious damage (partner wordings vary - check)
• Your own death, injury or medical costs

Usually not available on TPFT

• Special Perils (flood) add-on
• Windscreen cover
• All Drivers cover
• Compensation for repair time, NCD relief, key replacement
• The free towing, roadside assistance and additional-driver benefits partners bundle with comprehensive - BJAK's guide notes there is "no towing service" on TPFT

The practical consequence: if flood is a real risk where you park, TPFT is not the cheaper alternative to comprehensive-with-special-perils - it is a different product with no flood cover at any price.

TPFT is quoted on the same sum insured as comprehensive - the car's market value - because the fire and theft payout is a percentage of that value. Zurich's Z-Driver PDS prices a TPFT extension on a trailer at 75% of the comprehensive rate, and private-car TPFT premiums typically sit in a similar band: meaningfully above third party, meaningfully below comprehensive. Note that all motor premiums, including TPFT, are subject to the 8% Service Tax implemented in March 2024.

Two numbers decide whether that gap is worth taking:

• The car's market value. On a car worth RM12,000, the comprehensive premium may only be a few hundred ringgit above TPFT. On a car worth RM60,000 the gap is larger - but so is the accident repair bill you would be carrying yourself.
• Your NCD. The No Claim Discount applies to TPFT exactly as it does to comprehensive, and continues to build. A theft or fire claim resets it to 0% like any own-damage claim.

Because the comprehensive premium falls with the car's value while accident repair costs do not, the honest comparison on any car worth more than about RM20,000 is usually comprehensive - even on an older car. Run both through the insurance calculator with your NCD applied.

Consider TPFT when

• The car is older (often past the 10 to 15+ year mark) and its market value has fallen to the point where a comprehensive premium plus excess plus betterment is close to what you would spend fixing a typical dent yourself
• You own the car outright - hire-purchase requires comprehensive
• It is a second, weekend or family car with low annual mileage
• The model is theft-prone and you want that one risk covered without paying for full cover

Choose something else when

• You park outdoors anywhere that has flooded - you need comprehensive with Special Perils
• The car is your daily driver and you depend on it for work
• Other people regularly drive it - no All Drivers option exists on TPFT
• You want the roadside assistance and towing benefits partners include free with comprehensive

Full guides: third party car insurance and comprehensive car insurance, plus all four cover types compared.

1. Report to the police within 24 hours. A police report is mandatory for both theft and fire. For theft, also notify JPJ so the vehicle is flagged.
2. Notify the insurer within 7 days. Call the partner's claims hotline - it is on your e-policy and on the partner's BJAK page. For fire, do not move or repair the vehicle until the adjuster has seen it.
3. Total loss is paid at market value. For a stolen car not recovered, or a burnt-out car, the payout is the sum insured or market value at the time of loss, whichever is lower - one reason to keep the sum insured accurate at renewal. Your NCD resets to 0% at the next renewal.

• Third party car insurance - Liability-only cover explained
• Comprehensive car insurance - Full cover for your own car
• Types of car insurance - All four covers compared
• Sum insured - What your fire or theft payout is based on
• Market value vs agreed value - How a total-loss payout is set
• Special perils (flood) cover - Why it is not available on TPFT