What Does Third Party, Fire and Theft (TPFT) Mean in Car Insurance?

When you get a car insurance quote in Malaysia, you will usually see three types of cover: third party, third party, fire and theft (TPFT) and comprehensive. The middle option often confuses drivers. Is it basic cover or something closer to full protection?

In short, TPFT protects you against claims from other people and also pays out if your own car is stolen or damaged by fire. It does not pay to repair your car after an accident. This article explains what the term means, walks through everyday scenarios and helps you decide when TPFT is the right choice.

What does third party, fire and theft mean?

The name lists the three things the policy covers. The General Insurance Association of Malaysia (PIAM) describes TPFT as cover that extends a third party policy to include repairs or replacement if your vehicle is damaged by fire or stolen.

• Third party: your liability to other people. This covers death or injury you cause to others and damage you cause to their vehicles or property.
• Fire: loss of or damage to your own car caused by fire. BJAK’s TPFT guide notes that this usually includes lightning and explosion as well.
• Theft: loss of your own car if it is stolen, and in many policies, damage caused by an attempted theft.

What TPFT leaves out is just as important. Damage to your own car from a collision, flood or most other accidents is not covered, whoever is at fault.

How TPFT works in real life

The easiest way to understand TPFT is to see how it responds to common situations. The examples below are general. Always check your own policy wording, because terms can differ between insurers.

You hit another car at a traffic light

You misjudge the distance and rear-end the car in front. TPFT pays for the other driver’s repairs and any injury claims up to the limits in your policy. The repairs to your own bumper and bonnet come out of your own pocket.

Your car is stolen from an outdoor car park

You come back from dinner and your car is gone. After you make a police report and the insurer completes its investigation, TPFT pays out up to your sum insured. Most policies use market value, so the payout reflects what your car was worth at the time of loss, not what you paid for it.

Your car catches fire

An electrical fault starts a fire under the bonnet, or a fire spreads from another vehicle parked nearby. TPFT covers the damage to your car, subject to the policy terms and any investigation by the insurer.

Your car is caught in a flash flood

Flood damage is not covered by TPFT. BJAK’s special perils guide explains that the flood (special perils) add-on is not available for TPFT, so you would need comprehensive cover to buy it.

A stone cracks your windscreen

Windscreen damage is also outside TPFT. Windscreen cover is normally bought as an add-on to a comprehensive policy.

TPFT compared with other types of cover

The table below shows how TPFT sits between the other two main types of car insurance.

What happens	Third party	Third party, fire and theft	Comprehensive
You injure someone or damage their car	Covered	Covered	Covered
Your car is stolen	Not covered	Covered	Covered
Your car is damaged by fire	Not covered	Covered	Covered
Your car is damaged in an accident	Not covered	Not covered	Covered
Flood and windscreen add-ons	Not available	Usually not available	Available
Premium	Lowest	Middle	Highest

For a closer look at the other options, read Car Insurance: Third Party Policy Explained and BJAK’s guide to comprehensive car insurance.

When does TPFT make sense?

TPFT is a trade-off. You pay less than comprehensive, but you accept the cost of repairing your own car after an accident. It tends to suit drivers in these situations:

• Your car is older and worth less: if the market value has dropped a lot, the extra premium for comprehensive may not be worth it. Our article on renewing insurance for old cars explains what changes as a car ages.
• You own the car outright: with no car loan, you have more freedom to choose a lower level of cover.
• The car is a second or weekend vehicle: lower mileage usually means less exposure to accidents.
• You can afford your own repairs: you are comfortable paying for minor and moderate accident damage yourself.
• Theft is your main worry: you still want protection if the car is stolen, which basic third party cover does not give you.

TPFT is usually a poor fit if your car is new or still valuable, if you are paying off a car loan, if you park in a flood-prone area or if you use the car every day in heavy traffic. In these cases, a single accident could cost far more than the premium you saved.

Things to check before you choose TPFT

• Sum insured: set it close to your car’s current market value. If it is too low, your fire or theft payout may be lower than expected. Read more on market value vs agreed value.
• Exclusions: look at the product disclosure sheet for what is not covered, such as flood, windscreen and own accident damage.
• Add-ons and roadside help: many add-ons and the towing benefits bundled with comprehensive are not offered with TPFT. Check what is available for your policy before you pay.
• No Claim Discount (NCD): NCD still applies to TPFT premiums, and a fire or theft claim will usually affect your NCD at the next renewal.

What to do if your car is stolen or damaged by fire

1. Make a police report as soon as possible. BJAK’s TPFT guide recommends doing this within 24 hours.
2. Inform your insurer promptly and ask about its claim procedure. Check your policy for the exact notification period.
3. For a fire, do not move or repair the car until the insurer’s adjuster has inspected it.
4. Prepare your documents, such as the police report, policy details, vehicle registration, identity card and claim form. Keep copies of everything.

BJAK’s guide to car theft and total loss claims explains the process in more detail.

Conclusion

Third party, fire and theft gives you more protection than basic third party cover at a lower price than comprehensive. It covers your liability to others and protects your car against fire and theft, but you pay for your own accident repairs.

If your car is older, paid off and not your daily driver, TPFT can be a sensible way to save. If your car is newer, financed or exposed to flood risk, comprehensive is usually the safer choice. For a full breakdown of the cover, see BJAK’s third party, fire and theft car insurance guide.

Not sure which cover fits your car? Compare car insurance quotes on Bjak and see TPFT and comprehensive prices side by side.