Every car that is on the road must be adequately insured against Third Party Liability in property damage and bodily injuries/death. The purpose of a motor insurance is that in the even you cause damage to others, you have insurance to cover for the losses of the third party, and yours as well if your motor insurance is a comprehensive cover.
There are basically 3 types of motor cover available in the market; Comprehensive, Third Party Fire & Theft (TPFT) and Third Party Only (TPO).
As the name suggest, it is the most complete coverage available. It covers you against third party losses and liability as well as yours. A comprehensive cover include all the coverage of the Third Party Fire & theft PLUS your own damage. In another word, you can claim for your own damage.
Your car is severely damaged when you try to avoid a dog and hit into a road divider. This damage is caused by yourself, but with a comprehensive cover, your insurance will pay for your damage.
Third Party, Fire & Theft (TPFT)
This covers mainly for Third Party Liability such as Property Damage, Bodily injuries/death as well as Fire & theft of your vehicle. It is close to comprehensive cover, except it does not include own damage claim.
As its main purpose is to take care of Third Party liability, such as you accidentally crashed into people’s shop, house etc, or you hurt somebody in an accident and you are in the wrong. The liability coverage for Third Party Property damage is up to maximum RM3mil and unlimited liability for bodily injury/death.
In a TPFT, the only benefit to you as a policy holder is that it include damage/loss of your vehicle due to fire or theft.
Third Party Only
The minimum cover you to have is the Third Party Only cover. This basically cover against Third Party Property Damage and Third Party Bodily injury/death. Most insurer will not offer TPO cover unless your vehicle age is more than 20 – 25 years.