Insurance Technical Terms
Comprehensive Cover
Covers losses or damages to your car due to accident, fire and theft
Covers Third Party death and bodily injuries
Covers Third Party property losses or damages
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Third Party Cover
Covers Third Party death and bodily injuries
Covers Third Party property losses or damages
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Third Party, Fire & Theft Cover
Covers losses or damages to your car due to fire or theft
Covers Third Party death and bodily injuries
Covers Third Party property losses or damages
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Agreed Value
The Agreed Value shown in the Schedule is the maximum amount that Insurance company will pay for Your Car, less any Excess (if applicable) if Your Car is stolen or totally destroyed. If you have agreed at the commencement of this Policy to use this value as the basis of settlement provided Insurance company is liable to pay for such loss or destruction under the terms and conditions of this Policy. The Market Value of Your Car at the time of the loss will not be taken into account.
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Sum Insured
Sum insured is the amount of money that an insurance company is obligated to cover in the event of a covered loss.
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Excess
This is the first amount that you have to bear yourself for each and every claim that insurance company approve, even if the incident is not your fault. However, please note that the excess does not apply to loss or damage caused by fire, explosion, lightning, burglary, housebreaking, theft, third party property damage or bodily injury claims. Please check your Policy Schedule to find out the amount that you are liable to pay. Note that there is also the Compulsory Excess where you have to bear an additional excess of RM400 if you or the person driving your car: is under 21 years old; holds a Provisional (P) or Learner (L) driver’s licence; or is not named in the Schedule as a named driver.
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As an example, if Insurance company assess the claim payable to be RM10,000 but your policy carries an excess of RM500, you will have to bear the first RM500 yourself and Insurance company will pay the balance of RM9,500. However, if the driver is below 21 years old, you have to bear an additional excess of RM400. Using the same example, you now have to bear RM900 (i.e. 500 + 400) and insurance company will pay RM9,100.
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Betterment
If new original parts are used to repair Your Car and as a result of which Your Car is in a better condition than it was before the damage, You would be required to contribute to its betterment, a proportion of the costs of such new original parts.
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Under-Insurance
Under-Insurance If the Sum Insured of Your Car is less than the Market Value at the time of the loss, We will only bear part of the loss in proportion to the difference between the Market Value and the Sum Insured as shown in the formula below: Sum Insured / Market Value x Assessed Loss Market Value The balance has to be borne by You. However, this will only apply if the under-insured amount is more than 10% of the Market Value
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No Claim Discount (NCD)
If You have insured Your Car for a continuous period of 12 months and You or anyone else did not make any claim under this Policy during that time, a NCD will be applied at each renewal. The applicable NCD will increase with each renewal if You continue to have claim free years as follows: Claim Free Year of Insurance NCD Entitlement
After 1 continuous claim free year 25%
After 2 continuous claim free years 30%
After 3 continuous claim free years 38 1/3%
After 4 continuous claim free years 45%
After 5 continuous claim free years and beyond 55%
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Endorsement
This refers to the document that insurance company issue to You to confirm any changes or extensions of the coverage to the basic Policy.
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Market Value
This refers to the reasonable cost to buy another car of the same make, model, age and general condition similar to Your Car at the time of loss.
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Special Perils (Add on)
Insurance company will cover loss or damage to Your Car caused by flood, typhoon, hurricane, storm, tempest, volcanic eruption, earthquake, landslide, landslip, subsidence or sinking of the soil / earth or other convulsions of nature.
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Compensation for Assessed Repair Time - CART (Add on)
Insurance company will pay compensation for the number of days assessed by insurance company as required to repair Your Car under Section A of this Policy (‘the assessed repair time’). Insurance company will be based on the assessed repair time by the Adjuster or the maximum amount provided in the Schedule whichever is the lesser. The maximum rate per day and the maximum number of days that We will pay under this endorsement is limited to the amounts mentioned in the Schedule. For any claim that We agree to pay under this endorsement We will not deduct any Excess and You will not lose Your No Claim Discount entitlement.
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Cover for Windscreens, Windows and Sunroof (Add on)
Insurance company will cover the cost to replace or repair any glass in the windscreen, window or sunroof of Your Car that is accidentally damaged including the cost of lamination / tinting film (if any) provided no other claim is submitted for this Incident. The maximum amount that insurance company will pay under this endorsement is the amount mentioned in the Schedule. If Your claim is for the damaged glass only and no other damage, insurance company will not deduct any Excess, and You will not lose Your No Claim Discount entitlement. If the damaged glass is replaced, the cover provided by this endorsement comes to an end as soon as the glass is replaced. If You wish to enjoy continued coverage You must buy a new endorsement cover and pay the additional premium to the insurer. Alternatively if the damaged glass is repaired this cover will continue but the limit of the amount payable will be reduced by the amount of the repair cost. To restore the cover to the original limit You must pay the additional premium to Us for the increased cover. insurance company have the final say on whether to repair or to replace the damaged glass.
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Subrogation
Insurance companies are entitled to take over all rights and remedies that You may have against any third party who caused the loss.
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All information on this page is purely for educational purposes only. For more detailed coverage and information, please refer to the individual Policy Wording.