Third Party Car Insurance in Malaysia
Third party car insurance is the cheapest cover an insurer will issue, and the most misunderstood. It pays for the people you injure and the property you damage - with an unlimited limit for death and bodily injury and RM3 million for property in most partner policies - and pays nothing, in any circumstance, for your own car. This page explains exactly what that means, what it costs relative to comprehensive, and the narrow case where it is the right choice.
- Covers - death, injury and property damage you cause to other people - unlimited for injury, RM3 million for property.
- Does not cover - your own car: accident, theft, fire, flood - you pay everything yourself.
- Costs - the least of any cover; however, premiums are subject to the 8% Service Tax. The gap to comprehensive narrows sharply on cars worth under RM20,000.
- Fits - very old, low-value cars (typically 15+ years) owned by someone who can absorb a total loss. Subject to strict insurer approval.
What third party car insurance covers
Third party insurance is liability cover. It protects you from the financial consequences of hurting someone or damaging their property while driving your car. Zurich's Z-Driver Product Disclosure Sheet describes it as cover that "protects you from claims if your vehicle causes bodily injury, death, or property damage to others".
Every motor insurer writes it to the same regulated standard. If you cause an accident, the policy pays:
- Death or bodily injury to other people - the driver and passengers of the other vehicle, pedestrians, motorcyclists. The limit is unlimited.
- Damage to other people's property - their car, a shop front, a fence, a lamp post. Standard limit RM3 million.
- Legal costs of defending a third-party claim, within the policy's terms.
That is the whole of the cover. It is also the legal minimum in practice: section 90 of the Road Transport Act 1987 makes it an offence to use a vehicle on a Malaysian road without insurance against third-party death and bodily injury.
What third party insurance does not cover
The most-searched question about this cover is "does third party insurance cover my car?" The answer is no - not for anything.
Your own car - never
- Accident damage, whoever is at fault
- Theft, including parts theft
- Fire, lightning, explosion
- Flood, storm, landslide
- Windscreen and glass
- Vandalism and malicious damage
You and your passengers
- Your own death, injury or medical bills
- Claims from passengers in your own car
- Towing, roadside assistance and the free-driver benefits bundled with comprehensive
- Loss of use, daily repair allowance, key replacement
If the other driver is at fault, you claim against their third-party cover - but that means waiting on their insurer's assessment, and if they are uninsured or unidentified you have no recourse at all. Comprehensive cover removes that dependency.
First party vs third party insurance
Malaysians use "first party" to mean comprehensive cover - insurance that pays the first party (you) for your own car - and "third party" for liability-only cover.
| Who is paid | Third Party | Third Party, Fire & Theft | First Party (Comprehensive) |
|---|---|---|---|
| Other people - injury or death | Yes | Yes | Yes |
| Other people - property | Yes | Yes | Yes |
| You - car stolen or burnt | No | Yes | Yes |
| You - accident damage | No | No | Yes |
| Add-ons (flood, windscreen, all drivers) | No | No | Available |
What third party car insurance costs
Third party premiums are not priced on your car's value - the insurer's exposure is the same whether you drive a Kancil or a Vellfire. They move with engine capacity, your No Claim Discount (NCD), and since the 2017 detariffication, the insurer's view of your risk (age, location, claims record). Note that all motor insurance premiums are subject to an 8% Service Tax implemented in March 2024. For a typical 1.3-1.5 litre private car with full 55% NCD, third party premiums run in the low hundreds of ringgit a year.
The saving over comprehensive looks large on paper and shrinks in practice for two reasons:
- Comprehensive premiums fall with the car's market value. On a car worth RM15,000 the comprehensive premium is already low, so the difference to third party may be RM200-RM400 a year - less than one minor repair.
- Third party cover comes without the free towing, roadside assistance and additional-driver benefits every partner bundles into comprehensive. One breakdown tow at commercial rates can easily cost RM150-RM300.
Run both through the insurance calculator with your NCD applied before deciding - the gap is almost always smaller than people expect.
Who third party insurance suits
A reasonable choice when
- The car's market value is very low - under roughly RM10,000 - and a comprehensive payout would not be meaningful
- You own it outright; hire-purchase agreements strictly require comprehensive
- You could write the car off tomorrow without financial hardship
- It is a second or occasional car with little road exposure
The wrong choice when
- The car is financed, or you could not afford to replace it out of pocket
- You park at ground level anywhere that floods - no flood add-on exists on third party
- Other people drive it - the RM400 unnamed-driver excess applies and there is no All Drivers option
- You drive for e-hailing platforms that require comprehensive with the e-hailing endorsement
Insurers can decline it. Because the premium is low and the liability exposure is unchanged, several partners restrict third party cover - by car age, driver profile or region. BJAK's car insurance guide notes third party is "subject to insurance companies' approval". If it is declined, Third Party, Fire & Theft is usually the next quote.
Third party vs TPFT vs comprehensive
Third party
Others only. Lowest premium, no benefits, no add-ons. For a car you would not repair.
Third Party, Fire & Theft
Others, plus your car if stolen or burnt. Small premium step up. For an older car you still don't want to lose outright. Read the TPFT guide.
Comprehensive
Others, plus your car for accident, fire and theft, plus the only route to flood, windscreen and all-drivers cover. The default for anything you cannot replace from savings. Read the comprehensive guide.
How to buy third party car insurance on BJAK
- Enter your plate number and NRIC on the quote page. BJAK pulls your NCD from the central database automatically.
- Switch the cover type to Third Party in the results. You will see which of the 16 partners will write it for your car, and the comprehensive and TPFT prices alongside for the same car - compare all three before you choose.
- Add road tax in the same checkout if it is due; the policy is issued as an e-cover note that JPJ accepts immediately.
- Read the Product Disclosure Sheet linked on the partner's page before paying. For third party cover the section to check is the exclusions list - it is short, and it is the whole story.
Data sources & references
Limits, rates and benefits are taken from the current Product Disclosure Sheets and policy wordings published by BJAK's insurer and takaful partners, each linked from its partner page. Premium examples are the insurers' own illustrations, not quotes.
- Zurich General Insurance - Z-Driver Product Disclosure Sheet: definition of third party cover. Partner page
- Liberty General Insurance - Private Car PDS: unlimited bodily-injury limit, RM3 million property limit, RM400 compulsory excess. Partner page
- Tokio Marine - Private Car Plus PDS: third-party limits. Partner page
- Road Transport Act 1987 (Act 333), section 90 - compulsory insurance against third-party death and bodily injury.
- BJAK - Guide to Buy the Best Car Insurance: third party cover subject to insurer approval; detariffication July 2017.
See third party, TPFT and comprehensive priced side by side for your car
Enter your plate number and NRIC. BJAK pulls your NCD, shows which of 16 partners will write third party cover for your car, and puts the comprehensive price next to it so you can see the real gap.