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Compulsory Excess On Car Insurance Malaysia – In a car insurance policy, you will see a term or clause called “excess”. What is a discount on car insurance? In this article we explain the concept of deductions including mandatory deductions.
Deductible is the first payment you have to make when making a claim on your policy before the insurance company covers the balance. Even if you were not at fault, you still have to pay the deductible.
Compulsory Excess On Car Insurance Malaysia
However, please note that the excess does not apply to loss or damage caused by fire, explosion, lightning, theft, theft, damage to third party property or personal injury.
What Does Excess Mean On Auto Insurance?
A voluntary deductible is an amount you voluntarily pay when you make a car insurance claim. While some insurance companies require a voluntary waiver, other insurers do not require a voluntary waiver. However, your insurance premium may be higher. For your information: Voluntary deductible amount varies from insurance company to insurance company.
For compulsory excess, before you can make an insurance claim, you or the person driving your car must take more than RM400 with your consent:
Aida was driving her father’s car and met with an accident. Even though Aida is named as the driver of the car, her father still has to pay an additional RM400 as she is under 21 years of age.
Policyholders must deduct RM400 for the above circumstances. Therefore no money is refunded to the policyholders even if there is no fault.
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Although paying the mandatory deductible is mandatory, some insurance companies offer a deductible as an additional protection for those with comprehensive insurance.
Let’s look at the situation Aida experienced in the previous example. By exempting the mandatory deduction, Aida’s father does not have to pay the RM400 deduction as he is exempted from it.
The additional premium for the mandatory excess waiver is only between RM20 and RM30 for private cars. Instead of paying RM400 for the deductible, we recommend you buy this extra cover to save money.
If you need this extra protection, MSIG, Liberty Insurance and Tokyo Marine are among the insurers that offer this protection.
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As a car owner, it is important that you understand the important terms of your policy to make your insurance claim easier in the future. For example, you may be wondering why you should pay RM400 when making a no-fault insurance claim if you are not aware of any additional clauses in your policy.
Additionally, understanding important insurance terms will help you get a better and cheaper insurance plan. Not all insurance companies offer the same additional protection as auto insurance.
Therefore, it is always better to compare car insurance policies before you buy them. For your convenience, you can compare 15 insurance brands on Malaysia’s largest insurance comparison sites. Start by getting yours
One of Malaysia’s largest insurance comparison sites, offering insurance from over 10 brands. Get your free insurance quote today! Home » NCD, Car Insurance Improvements and Additional Rates in NCD, Improvements and Additional Rates in Car Insurance
Confused About ‘excess’? It’s…
There are three main aspects of car insurance that you need to understand in order to make informed decisions before purchasing a policy. They are NCD, enhancement and excess. Although they may seem simple to some, these concepts can be confusing when it comes to claims payments and policy renewals because they involve numbers.
But don’t worry – we’ve collected it all in one place so you can easily refer to it when in doubt. Remember to keep this link for future reference. It is very useful.
No-Claim Discount (NCD) is a discount given by insurance companies on car insurance premiums. The exemption is set by Persatuan Insurance Am Malaysia (PIAM) to promote safe driving. It serves as a reward/incentive for vehicle owners with good driving behavior. NCD is also known as No-Claim Bonus (NCB) by some.
NCD rates for new vehicles start at zero in the first year of purchase and gradually increase over time. Private car owners can get maximum 55% deduction (from sixth year onwards) while motorcycle owners can get maximum 25% deduction (from 4th year onwards) if no claim is made against the policy or increased.
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Repair costs are when the insurance company requires the policyholder to pay part of the cost of replacing the damaged part with a new one, whether the original damaged part is used or old. This is due to the concept of improvement or improvement – the idea that the replaced part is now “better” than the old one.
Improvement fee is usually charged for vehicles older than 5 years. Minimum rate starts from 15%, maximum rate is 40%. The price varies depending on the age of the vehicle as shown below:
A deductible is the first payment that must be made when making an insurance claim before the insurance company will apply coverage. It is often a fixed amount that is mandated to policyholders in certain cases.
The mandatory excess is a fixed amount (usually RM400) set by insurance companies for high-risk young drivers. This amount is payable if the policyholders belong to one of the following categories:
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One of Malaysia’s largest insurance comparison sites, offering insurance from over 10 brands. Get your free insurance quote today! One way to get the best car insurance is to understand the different concepts and terms commonly used by insurance companies. One such example is profit. If you own a car or have experience renewing car insurance, you may know that most car insurance policies include an exclusion clause, sometimes called a deductible.
In Malaysia, insurance companies divide their profits into two categories. Learn more about the differences between the two in this article.
A deductible is the first payment that must be made when making an insurance claim before the insurance company will apply coverage. It is often a fixed amount that is mandated to policyholders in certain cases. They are divided into mandatory deductions and voluntary deductions.
Claims for loss or damage due to fire, explosion, lightning, theft, damage to third parties or personal injury are not considered, although some may require an exclusion.
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Yes, you can change the voluntary excess you set with your insurer, which is the amount you are willing to pay in the event of a claim.
Although increasing the voluntary premium will reduce your car insurance premiums, it will have a negative impact on the cost of making a claim as you will have to cover a higher amount of expenses. So even if you can pay the deductible, consider how the change in voluntary premium will affect your insurance rate before you make the call.
When you make a car insurance claim, you must cover both your mandatory and voluntary contributions. In the event of a minor traffic accident, your deductible may exceed the repair costs, especially if you choose a high voluntary deductible.
In such a case, you need to decide whether it is worth making an insurance claim as it may affect your No Claim Bonus (NCD).
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One of Malaysia’s largest insurance comparison sites, offering insurance from over 10 brands. Get your free insurance quote today! Liability insurance is basic automobile insurance that covers death or injury to others, as well as damage to another person’s car or property.
Fire and theft liability insurance covers damage to the policyholder’s car due to fire or theft in the policyholder’s car.
Do you know that Even with full comprehensive insurance, your car insurance will only cover your vehicle in the event of an accident. This means you will have to pay hospital or ambulance fees.
Consider taking Driver’s License Allowance (DPA) to protect yourself and your passengers*. If you are injured in an accident, DPA covers permanent total or partial disability, medical expenses, hospital fees and more.
Compulsory Excess In Car Insurance Explained
Do you know that Damage to the windshield can often be repaired at low cost and can be claimed on your auto insurance. However, if you make a claim under your car insurance, the No-Claims Deductible (NCD) will be reset. Therefore, it is best to purchase a windshield add-on that provides additional protection to repair or replace your windshield.
Note: From February 15th to August 14th, if you choose to repair your windshield instead of replacing it, you will have your excess windshield insurance renewed at no additional premium*. If you decide to repair, you will save time in the workshop and at the same time protect the environment.
If you are in your car and the water rises, remember these simple steps and ensure the safety of you and your passengers.
To learn more about 24-hour auto assistance and special perils coverage, please contact your insurance advisor or click here to get in touch.
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To know more about Mandatory Excess and other important things you need to know while making a claim, please consult your insurance advisor or click here to watch a video on Mandatory Excess Waiver
