Motor insurance in Malaysia is regulated by the Road Transport Act 1987 as amended from time to time. Part IV of the Act provides that every motorist must insure, within an authorized insurer, any liability which he may incur in respect of the death of or bodily injury to a third party caused by or arising out of the used of the motor vehicle or land implement drawn thereby on a road. The policy also indemnify expenses reasonably incurred for hospital treatment.

1.Comprehensive Covers
This is the widest form of cover. The policy covers or damage to the vehicle and the liability to third parties including liability to third party for loss or damage caused to their property. Examples of covers for loss or damage to the vehicle under the policy are:

-Accidental Collision
-Overturning
-Lightning
-Fire, External Explosion
-Burglary, Housebreaking
-Malicious Act

2.Third Party Fire and Theft
Cover for loss or damage to vehicle is limited to
-Fire, External Explosion, Self ignition or Lightning
-Burglary, Housebreaking or Theft

Liability to third parties for death/bodily injury loss or damage to property is also provided.

3.Third Party
There is no cover provided for loss or damage to vehicle.
Cover is restricted to liability to third parties only.

4.Act
In extreme cases, cover is restricted to liabilities to third parties for death and bodily injury only.

The third section is a short section on Guide to completion of Policy Schedules.