If you’re new to motor insurance, you may be overwhelmed by the legalities of it all. Many of us don’t know some of the term meanings stated in a motor insurance policy. We’ll explain a few basic and most common motor insurance terminologies to know.
It can be tedious to find, compare and buy motor insurance, particularly if you’re the fussy kind (which is good because we’re talking about saving yourself and others). In between all of that, you’ll also have to review the policies carefully before you sign on the dotted line.
For most of us, we may not be familiar with the legal terms stated in the policies. Not knowing what they meant or misunderstanding what they meant could cause you some problems in the future, which is why you need to know all there is to know about the terminologies of motor insurance in Malaysia.
Since there are so many motor insurance terminologies that you must know, we’ll break it down into a few parts. In this Part 1, we’ll list the terms that start with A to C:
Common motor insurance terminologies starting with ‘A.’
Act Of God
This refers to whatever occurrences that happen naturally beyond human control, for example, floods or landslides…
Both parties involved agree to the terms of an insurance contract, where it is binding.
An unintended or unforeseen occurrence or event.
Accidental Bodily Injury
The insured’s body has injuries due to an accident.
Add-ons made for basic insurance policies. They are sometimes known as Special Perils or Fire policies, where they cover perils such as explosion, lightning, and fire; or losses due to flood and storm.
Insurance companies won’t accept policy renewals or applications by those who are under the age limit or over the age limit.
An individual who sells and provides services related to insurance policies on behalf of insurance providers.
For a one-year policy, the Annual Limit refers to the maximum amount paid for your claims settlement. Your premium will be higher the higher the annual limit.
An individual who has been insured against loss.
Common motor insurance terminologies starting with ‘B.’
A contract that pays the insured a sum of money in a specific occurrence, whether or not the person insured faces financial loss.
An individual who receives the payout from the contract made if the insured dies.
When the beneficiary dies before the insured, the death benefit will be designated to individual(s).
A beneficiary that the insured cannot change.
An individual or individuals who will receive the benefits.
If some wrecked parts need to be replaced with new ones when you send your damaged vehicle for repair, a portion of the costs will be covered by your insurer. The difference needs to be paid by you based on the standard betterment scale, ranging from 0% to 40%.
Bodily Injury Liability
A legal liability arises when someone faces an injury or dies.
Breach of Contract
The insured fails to comply with his/her insurance policy’s terms and conditions.
An individual who represents the insured by servicing and arranging insurance policies on the latter’s behalf. The broker earns commissions from the insurance company.
Common motor insurance terminologies starting with ‘C.’
An individual makes a claim to an insurance company for a loss that the policy covers.
The policy owner (the insured) needs to comply with the policy’s terms before his/her insurers pay for the claim made.
Contract of Indemnity
This type of property insurance restores the insured’s financial condition to how it was before when he/she suffers a loss or misfortune. However, it is not considered a Contract of Indemnity for Personal Accident insurance if the insurer makes a lump sum payment to the insured, which has been pre-agreed.
In the case where an individual holds more than two insurance policies (which are contracts of indemnity) that are similar in terms of coverage for the same perils, the law will prevent the insured from recovering his/her loss under the policies so he/she could profit from it.
Coordination of Benefits
When more than one policy covers an insured, the primary carrier will be determined by a group policy provision. This is to ensure that the insured will not receive overpayments in claims.
You must read your policy thoroughly. Check whether every detail is correct, and make sure you truly understand all the terms and conditions mentioned in the contract. Don’t sign the policy until you’re confident that everything’s right and satisfactory. You may also ask for help from someone to review the policy and ask for their second opinion. Stay tuned for the second part of this blog post!
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It is time to renew your motor insurance if you haven’t done so already. If you’ve got a hectic schedule, fret not! Here’s how you can start comparing motor insurance in a mere three minutes.
Before the dawn of online insurance comparison platforms, it was quite a hassle for consumers to find and purchase the best motor insurance. Back then, comparing motor insurance and getting quotes can take a while, not to mention having to visit insurance providers in person, one by one. It was very time-consuming and required a lot of effort.
Thanks to technology, you no longer have to leave your house to get your motor insurance. Now, you can compare and customise your motor insurance plan before you buy it, all in three minutes or even less! Here’s how it works on FatBerry’s AI-powered platform when you click the ‘Get Started’ button:
1. Give us a few relevant details.
We will ask you a few things, like your vehicle location (provide us with your postcode), your vehicle registration number, and your ID number.
2. Ensure that your vehicle information is correct.
In less than five seconds, we will show you the complete details of your vehicle. Ensure that your vehicle information is correct, including Vehicle Make, Year, Vehicle Chassis Number, Vehicle Variant, Vehicle Model, Vehicle Engine (CC), and Vehicle Engine Number.
3. Choose from a list of motor insurance plans.
To proceed further, provide your email address and phone number. In a few seconds, we will present a list of motor insurance plans for you to choose from, complete with insurance providers, the sum insured, and the gross premium.
To get the best premium rate, you will need to provide a few more info, including your years of driving experience, your gender, and your marital status. Your motor insurance premium will be calculated based on risk characteristics. The greater the profile risk, the higher the premium. The lower the profile risk, the lower the premium.
Once you have updated your driver information, read the coverage and benefits offered by each provider. Next, after you’ve decided which plan is the best for you, you may proceed with choosing the add-ons that you need.
4. Choose your add-ons.
When choosing the add-ons, do bear in mind that the more add-ons you choose, the higher your premium rates will be. So choose carefully and get the add-ons that you truly need. Consider the location of your vehicle if you’re not sure whether you need a particular add-on or not.
For example, if you live in an area that is vulnerable to natural disasters, like landslides or floods, you can get additional coverage for any damages to your vehicle due to natural disasters. Similarly, if you live in an area with a higher rate of vandalism, theft, accidents, civil commotion, riot, or strike, opt for the right coverage.
Should you have any questions, don’t hesitate to have a live chat with FatBerry’s support team via WhatsApp or Facebook Messenger. You may click on the purple button located on the lower right side of the page to start a conversation.
State what it is that you want to talk about. For example, maybe you’d like to get help with choosing the right add-ons, or you may need more advice on choosing the best plan for you before you buy it. Next, select the chat channel of your choice, and you will instantly be taken to the channel for further conversation.
5. Fill in your details.
Fill in your personal details. Make sure everything is correct and complete. Once you’ve reviewed your details and all is good, you may proceed to pay for your motor insurance plan.
Enjoy additional special promos when you renew on FatBerry’s platform
Now that we’ve shown you how easy it is to compare motor insurance on our platform, it’s time to renew your motor insurance if you haven’t done so already. However, you can only renew your policy within two months before your policy expiry date. So be quick and be on time!
For those with a Visa card, here’s some good news for you: enjoy the ‘RM1 Road Tax with Fatberry’ special promo when you renew your motor insurance and pay with your VISA card on FatBerry’s platform!
That said, if your motor insurance has not expired yet, don’t worry. Just click ‘CHOPE’ for your next renewal. This deal is exclusively for Visa cardholders only, where you can claim your RM1 road tax later. In other words, you can reserve the promo first before the deal ends.
On the other hand, if you’re interested in earning some extra cash, refer your friends to our platform and earn RM30 when your friends renew their insurance with FatBerry! Check out our main page for more info!
Most vehicle owners would know that car insurance is compulsory in Malaysia. But what about the coverages? What does car insurance cover and doesn’t cover? Find out more.
Just like any other product, car insurance (also motor insurance) plans in Malaysia aren’t all created equal. Though all car insurance plans available aim to provide financial protection for the policyholder (against liability, physical injury, or damage due to road accident), the terms and conditions and the add-ons may vary between insurance providers.
There are three kinds of car insurance policies in Malaysia: comprehensive coverage; third-party, fire and theft coverage; and third-party coverage. Each of these policies provides different kinds of coverage. Let’s take a closer look at every one of them:
- As its name suggests, the comprehensive coverage covers mainly everything, not only the third party but also your vehicle. Whatever vehicle-related loss or damages that you are facing, you will be covered. However, this will also depend on your vehicle’s age, which means not every vehicle is eligible to be provided with this coverage.
Third-party, fire, and theft coverage
- For the third-party fire and theft coverage, you will be covered for any claims made by a third party against you due to a road accident that results in vehicle damage, loss of property, bodily injuries, and death. This coverage plan also covers you for damages caused by fire or even grand theft auto (NOT the video game).
- Meanwhile, the third-party coverage provides the most minimal and basic coverage, so it is the cheapest coverage among the three. As the name suggests, this coverage will only protect the third party involved in the road accident.
- Any damages done to your car will not be claimable. However, you are allowed to claim for whatever compensation is required by the third party.
Now that you know the basics of what the standard car insurance in Malaysia covers, you may be wondering what the standard car insurance in Malaysia does not cover.
What the average car insurance in Malaysia does not cover
It is important to note that while most car insurance offers coverage for third-party injuries or death and any damages done to your vehicle or the third party, neither one provides coverage if you are injured or passed away due to the accident.
For this, you will have to get personal accident insurance, which is separated from car insurance.
So when you’re comparing several car insurance policies, look out for the ‘Exclusions’ stated in each policy, as they may also vary between policies. Exclusions simply mean the losses that are not covered by the policy.
Some examples of exclusions include the following:
- Your own bodily injury or death caused by a road accident
- Liability against claims by passengers in your car
- Liability, damage, or loss caused by natural disasters, such as landslide, storm, or flood
- Tire damages (exception is given if other parts of your car are damaged as well at the same time)
- Liability, damage, or loss that arises when you’re driving the vehicle for hire or e-hailing
- Liability, damage, or loss caused by racing
These are only a few examples of exclusions that you can find in various policies. Therefore the list is not exhaustive. You can only view the complete list of exclusions when you’re handed the policy contract (or a sample of the policy contract).
For this, you’d have to get in touch with an insurance provider of your choice.
Add-ons: Get the protection you want and need
Of course, if you are not satisfied enough with what’s being provided by the standard car insurance coverage, you can always opt for the add-ons. However, the more add-ons you get, the more expensive your insurance premium will be.
Your insurance provider will calculate your premium based on factors like:
- Coverage type
- Vehicle type
- Driving record
- Driver’s age and gender
- Where the driver lives
Therefore, the add-ons that you choose depend on the factors mentioned above. Here are a few examples of add-ons, which are basically protection against damages or liability, that are available for policyholders to choose from:
- Vehicle’s windscreen damages
- Vehicle’s audio and accessories damages
- Vehicle damages due to natural disasters (e.g., landslides, storm, or flood)
- Vehicle damages due to a civil commotion, riot, or strike
- Protection against liability claim from your passengers (in case of an accident)
To reiterate, not all plans are created equal. This means the add-ons provided by various insurance companies in Malaysia will also be different. If you’re looking for any specific add-ons, choose an insurance policy that provides the add-ons that you want.
That said, with so many car insurance plans available on the market, it can get overwhelming to compare them manually one by one.
Because comparing insurance plans can be time and energy-consuming, we highly encourage you to use an online insurance comparison platform like FatBerry for convenience.
Compare insurance quotations instantly and buy in three minutes!
Good news! FatBerry raised RM2.5 million (approx. US$600,000) new funding from equity crowdfunding platform, pitchIN to carry out FatBerry’s expansion and product development plans!
After two years of trial and preparation, our insurtech platform was commercially launched in April 2020 during the beginning of the pandemic. Fatberry has transformed the way consumers purchase insurance products in Malaysia via our insurance digital marketplace that allows customers to compare, customise and buy insurance products online instantly and easily.
Pandemic Driven Explosive Growth
With the pandemic and lockdown situation, consumers resolve to change their purchasing behaviour – many adopted online shopping almost exclusively for all their daily needs. This accelerated online purchasing behaviour has spurred explosive growth in demand for purchasing insurance online.
As FatBerry is the most comprehensive insurance marketplace online for the Malaysian market, it is undoubtedly that FatBerry has experienced an impressive continuous monthly growth of 100% from June 2020 to February 2021.
Between June 2020 to February 2021, Fatberry’s sales have grown 6,800%. It is currently transacting 7 figure sales revenue for its platform on a monthly basis.
Funding to Fuel Further Growth
“Post-FatBerry raised, our next step is to add more talent to our team, further develop our platform and product offering, as well as scale up our marketing and branding efforts. We will continue in our mission to help more Malaysians purchase insurance online with ease from the reliable and trustworthy insurtech platform of ours,” said FatBerry CEO John Tan.
Malaysian consumers have now recognised FatBerry as the easiest and fastest insurtech platform that provides extensive customer care to make sure purchasing insurance online is a positive experience for consumers.
Our platform currently represents 11 Bank Negara Malaysia licensed insurers, facilitating largely transactions involving car insurance. With Malaysia having more than 10 million registered cars on the road, Car Insurance is the largest segment of the general insurance market of Malaysia by sales revenue.
Launch of motorcycle insurance to drive further growth
Earlier in April, we had also launched motorcycle insurance on our platform.
“Motorcycles are the most popular vehicle in Malaysia, making up almost half of the total number of vehicles on the road. Hence, it is a key expansion market for FatBerry,” said FatBerry’s Head of Marketing, Debbie Ang.
Our platform expects the motorcycle insurance products to do well on its platform as the segment of this market is almost untouched, as traditional insurance agents would usually focus on high-value insurance products instead.
Strategic Pre-Series A Funding Round
The Pre-series A funding round was led by strategic investor Stockholm-based publicly traded venture builder Abelco Investment Group AB. Other investors who participated include ASX-listed Fatfish Group Limited and notable angel investors from Malaysia and Singapore.
RM1 road tax sounds too good to be true, but is it really? We are stoked to find out how excited Cik Manggis, a popular singer/actress, was when she compared the things you can get with RM1, then and now. Let’s check it out!
Many of us may have reminisced the good old days where things were cheap and life wasn’t as hectic as it is today.
Speaking about lower prices, did you know that you can get a lot of things with a mere RM1? Yes, indeed!
To cut a long story short, Cik Manggis had recently shout out on her Instagram feed about the ‘5 Things We Can Buy With RM1, Then vs. Now.’
You’d be surprised to see her compare many things you can get with RM1 back in the old days and modern times.
So, what can you get with RM1, then and now? Check out the comparison:
5 pieces of roti canai and
1 can of dhal
1 piece of roti canai
100 pieces of candies
(1 cent each)
10 pieces of candies
(10 cents each)
4 ball pens
(25 cents each)
1 ballpen (RM1 each)
at the Asiatic Cinema
(short-distance bus ride)
Things definitely seemed cheaper in the olden days. However, what about the fifth one? What is the other thing you can get with RM1?
Here comes the best part…watch her video to find out more 👉🏼
View this post on Instagram
The good old days may have won the first four rounds of comparison, but it sure can’t beat this king of all cheap prices: RM1 road tax! Yes, you’ve read that right! That’s RM99 less than the normal price of road tax back then!
In partnership with Visa, you can now get RM1 Road Tax with FatBerry*!
Enjoy this special promo when you RENEW your car insurance and pay with your VISA card on FatBerry’s platform.
That said if your car insurance has not expired yet, don’t worry! Simply CHOPE* for your next renewal. How’s that for the biggest saving of all?
FatBerry allows consumers to compare, customise and purchase insurance products online, recording significant market traction in the second half of the year, increasing its revenue by almost 100% every month.
Technology venture capital firm Fatfish Group (ASX: FFG) has posted “explosive” monthly sales results during the six months to December 2020 for its direct-to-consumer digital insurance subsidiary Fatberry Sdn Bhd.
The fast-growing, Malaysia-based offshoot employs a digital platform to allow consumers to compare, customise and purchase insurance products online – recorded significant market traction in the second half of the year, increasing its revenue by almost 100% every month.
Its December revenue reached $66,677, and its January total to date is believed to have already achieved 180% of that figure, further asserting the month-on-month growth trend.
Fatfish said the key to Fatberry’s performance had been an acceleration in consumer online usage patterns due to global COVID-19 lockdowns.
Easing the process
Fatberry was founded on a desire to ease the process of purchasing insurance online for Malaysian consumers.
It claims to generate quotes “instantly” while allowing customers to obtain motor and travel insurance within three minutes.
The company spent the first two years offering a trial service before launching a full suite of API-enabled commercial services in April last year.
Fatberry currently partners with 11 local insurance companies including Zurich, Lonpac, Takaful Malaysia, and Etiqa to offer a wide choice of products via its digital marketplace.
Fatfish owns a 53.4% stake in Fatberry via Swedish-based subsidiary Abelco Investment Group AB.
The two companies entered into a de facto merger in late 2019 after Abelco made a binding offer to acquire Fatfish investee company Fatfish Global Ventures.
FatBerry’s Asian presence
Fatfish recently announced plans to diversify its Asian presence through a move into the buy now and pay later space.
Last month, the company announced it would acquire a 19.9% stake in BNPL provider Smartfunding, bolstering its total equity in the Singapore-based lender to 78.7% through Abelco.
Fatfish plans to initially offer regulated BNPL services to the Singapore market before expanding into other regions.
This piece was written by Imelda Cotton and published initially on SmallCaps.com.