Can Insurers Force Me To Buy Add-Ons Under BNM Rules?

No. Insurers must not force you to buy separate, non-motor related insurance, such as personal accident cover, as a condition of purchasing motor insurance. Bank Negara Malaysia (BNM) has specifically addressed this practice. However, motor-related add-ons and bundled coverage may have different terms, so it is important to understand what an insurer is offering before you pay.

What Does BNM Say About Compulsory Add-Ons?

BNM has stated that insurance companies must not compel customers to purchase additional non-motor-related cover, such as a personal accident policy, when buying motor insurance.

This means an insurer should not make you buy an unrelated insurance product just to obtain motor cover.

However, this does not mean every additional benefit offered with a motor policy is prohibited. Some benefits extend your motor protection, while others are separate insurance products. You should check what each item covers and whether it is being presented as optional or compulsory.

Which Motor Insurance Covers Are Compulsory?

Under Malaysian law, motor vehicle owners must have the required motor insurance before using their vehicles on public roads. Third-party bodily injury and death cover is the legal minimum.

Other types of motor protection include:

Coverage	What it generally covers
Third Party	Liability for injury, death and property damage caused to others
Third Party, Fire & Theft (TPFT)	Third-party liability, plus loss of your car due to fire or theft
Comprehensive	Third-party liability, plus accidental damage to your own car, subject to policy terms

You may also choose additional protection, such as special perils (flood), windscreen cover and passenger liability. These extensions usually come with an additional premium or contribution.

Are All Add-Ons Optional?

Not every additional benefit works in the same way. It helps to separate them into three groups:

• Optional motor add-ons: Extra protection such as windscreen cover, special perils and other extensions. You can consider these based on your needs and budget.
• Non-motor insurance products: Separate products such as personal accident insurance. BNM has specifically said these should not be forced on customers as a condition of buying motor cover.
• Included benefits: Some policies may already include certain benefits without charging a separate amount. Check the policy wording to understand their limits and conditions.

An insurer may also offer a particular package with specific coverage conditions. Ask whether there is another suitable option without the additional product before making a decision.

What Should You Check Before Paying?

Before confirming your motor insurance purchase, review the quotation and Product Disclosure Sheet (PDS).

Pay attention to:

1. Coverage details: Check which benefits are included in the basic policy and which are additional.
2. Extra charges: Look for separate premiums or contributions for each add-on.
3. Selection and consent: Make sure the add-ons shown are the ones you agreed to purchase.
4. Policy conditions: Check exclusions, coverage limits and eligibility requirements.
5. Final price: Confirm the total amount you need to pay, including any additional products.

If an add-on appears in your quotation without your knowledge, ask the insurer or intermediary to explain why it is included and whether it can be removed.

You can also learn how to review these details in our guide on how to read a car insurance Product Disclosure Sheet (PDS).

What If an Insurer Forces You to Buy an Add-On?

If you believe an insurer is making you purchase an unrelated insurance product to obtain motor cover, take these steps:

1. Ask for clarification: Request a written explanation of why the additional product is required.
2. Keep the evidence: Save your quotation, payment details, messages and any documents showing how the product was presented.
3. Contact the insurer: Submit a formal complaint to its Complaints Unit and explain what happened.
4. Refer the matter to BNM: If the issue remains unresolved, you can follow BNM’s complaint process through BNMLINK.

BNM requires customers to approach the financial service provider’s Complaints Unit first. For eligible disputes involving direct financial losses, you may also consider referring the matter to the Financial Markets Ombudsman Service (FMOS). However, FMOS does not handle general product pricing or underwriting decisions.

Understand What You Are Paying For

You should know exactly what your motor insurance covers and which additional products you are paying for. BNM has specifically addressed the practice of forcing customers to buy unrelated insurance alongside motor cover. If you are unsure about an add-on, ask for clarification before making payment.