When you buy a motor vehicle, you need to buy / participate a motor insurance / motor takaful. This is according to Section 90 of Road Transport Act 1987 stated that no motor vehicle is allowed to be used on the road unless it has minimum Third Party risks cover or ‘Act’ cover.

In the event of driving without insurance / Takaful protection, the following action could be taken against the driver:

  1. A fine of RM1,000 OR
  2. 3 months imprisonment OR
  3. Both

In addition, if the court deems so, they also may be disqualified from holding a license for a period of 12 months from the date of conviction

Why car insurance / Takaful is mandatory?

Excessive total amount of loss