Legal Liability to Passengers

Legal Liability to Passengers (LLTP) is an optional car insurance add-on that provides protection against certain claims made by passengers travelling in your vehicle.

This is important because many drivers assume that comprehensive car insurance automatically covers every person inside the vehicle.

It doesn't.

Bank Negara Malaysia states that standard motor insurance does not cover the policyholder's liability against claims from passengers in the vehicle, except for certain vehicle types such as taxis and buses. Additional coverage can be purchased to extend protection.

Imagine you are driving your family to another state.

You are involved in an accident and one of your passengers suffers an injury. The passenger subsequently makes a legal claim against you.

Without LLTP, your standard policy may not provide the protection you expect for this type of passenger claim.

With the appropriate LLTP extension, the insurer can provide cover for the insured liability, subject to the terms and conditions of the policy.

Not automatically.

A comprehensive policy primarily covers your own vehicle against insured damage as well as your liability to third parties.

PIAM explains that comprehensive cover can be extended with additional benefits such as Personal Accident and other optional coverage.

If passenger liability is important to you, check whether Legal Liability to Passengers is included or available as an add-on.

These two covers serve different purposes.

Personal Accident is therefore not a replacement for LLTP.

LLTP may be particularly relevant if you:

• Regularly drive family members
• Carry children or elderly passengers
• Frequently drive friends or colleagues
• Take passengers on long-distance journeys
• Travel across borders where passenger liability requirements may apply

If you regularly carry passengers, it is worth checking whether your policy includes this protection.

Not in the same way as Personal Accident insurance.

LLTP is primarily about legal liability arising from passenger claims.

If you want financial benefits for accidental injury, death or permanent disability, look at a suitable Personal Accident cover as well.

The price depends on the insurer, vehicle and policy.

For example, Generali currently lists LLTP as an optional benefit and states that pricing can be based on the third-party premium and passenger capacity.

Your actual price may be different, so compare the quote rather than relying on a fixed price.

You can compare available car insurance policies and add-ons through BJAK.

BJAK's current comparison page lists Legal Liability to Passengers as a paid add-on across its participating insurers.