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Differences Between Comprehensive and Third Party Motor Policy Which Everybody Ought To Know
Insurance for motorcars in Malaysia can be classified into Comprehensive and Third Party coverage. Pursuant to Section 90 (1) of the Road Transport Act 1987, each motor vehicle is required to be insured in respect of Third Party Risks coverage before it is allowed to be used. What makes the difference between the two types of coverage? In this article, I will attempt to share with you the differences between the two. As usual, the policy holder and or user of the vehicle will have to comply with the terms and conditions of the policy to be entitled to coverage.
Comprehensive Cover
Coverage is not compulsory under the law. You don’t have to take up comprehensive cover if you don’t want to.
Provides cover against damage to the car. Therefore, if the car is damaged in an accident, the insurer is liable to restore the car to its pre-accident condition. This can be either via repairs, cash in lieu of repairs, total loss basis or reinstate or replacement at the discretion of the insurer.
Provides cover in the event of loss of car. If the car is stolen, the insurer is liable to indemnify you the sum insured or the market value of the car, whichever is the lower. Read more
What Happens to Your Assets When You Die Without Making A Will
In my previous post, I shared with you 6 Reasons Why You Should Make A Will. Now I will tell you what happens to your assets when you die without making a will. For purposes of this post, I shall be confining my sharing to non-Muslim Malaysians residing in West Malaysia as well as non-Muslim and non-native Sarawakians.
If a person dies without making a Will, the law takes over in terms of the distribution of the assets of the deceased. The relevant law applicable is from the Distribution Act 1958 which stipulates the rightful beneficiaries and their proportion of their inheritance. Some definition of terms used would be necessary here.
According to the Distribution Act 1958, “issue” includes children and the descendents of children. “Child” means a legitimate child but does not include an adopted child unless the child was adopted under the provisions of the Adoption Act 1952 or the Adoption Ordinance of the State of Sarawak. This means that a step-child is not included. The word “Parent” where it appears in the Distribution Act 1958 means the natural mother or father of a child or the lawful mother or father of a child under the Adoption Act 1952. This also means that a step-parent is not included. Read more
