Liberty General Insurance Berhad 197801007153 (44191-P)

Formerly known as AmGeneral Insurance Berhad

Head Office: Liberty Insurance Tower, CT9, Pavilion Damansara Heights, 3, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur.
Postal Address: P. O. Box 6120 Pudu, 55916 Kuala Lumpur, Malaysia.
(Service Tax Registration No.: B16-1808-31015443)
The benefit(s) payable under this eligible policy is protected by PIDM up to limits.
Please refer to PIDM’s TIPS Brochure or contact Liberty General Insurance Berhad or PIDM (visit www.pidm.gov.my).
Customer Contact Centre
1 800 88 6333 customer@amassurance.com.my www.amassurance.com.my

EXPLANATORY NOTES Private Car Third Party Policy

How to read this document

Please note that your Private Car Third Party Policy only starts from page 5 onwards. To help you read and understand
your policy better we provide some explanatory notes together with comments and examples (written in italic). These are
not meant to be part of your policy and should not be used to interpret your insurance contract in the event of any dispute.

Words in bold
You will notice that some words in the policy are printed in bold letters. This is because they have been given specific
meaning in your Private Car Third Party Policy. Please refer to Section F on pages 14 to 15 for the meaning of these words.

What makes up your insurance contract?

Your insurance contract with us is made up of the following:
 insurance policy in pages 5 to 19 (excluding the italic texts);
 the information you provided us when you applied for this insurance;
 the Schedule;
 the Endorsements attached to the policy; and
 the Certificate of Insurance (CI).
All these must be read together as they form your insurance contract.

Duty of Disclosure
A. Consumer Insurance Contract

Where you have applied for this insurance wholly for purposes unrelated to your trade, business or profession, you had a
duty to take reasonable care not to make a misrepresentation in answering the questions in the Proposal Form (or when
you applied for this insurance) i.e. you should have answered the questions fully and accurately. Failure to have taken
reasonable care in answering the questions may result in avoidance of your contract of insurance, refusal or reduction of
your claim(s), change of terms or termination of your contract of insurance in accordance with Schedule 9 of the Financial
Services Act 2013. You were also required to disclose any other matter that you knew to be relevant to our decision in
accepting the risks and determining the rates and terms to be applied.

You also have a duty to tell us immediately if at any time after your contract of insurance has been entered into, varied or
renewed with us, any of the information given in the Proposal Form (or when you applied for this insurance) is inaccurate or
has changed.

B. Non-Consumer Insurance Contract

Where you have applied for this insurance for purposes related to your trade, business or profession, you had a duty to
disclose any matter that you know to be relevant to our decision in accepting the risks and determining the rates and terms
to be applied, and any matter a reasonable person in the circumstances could be expected to know to be relevant,
otherwise it may result in avoidance of your contract of insurance, refusal or reduction of your claim(s), change of term(s) or
termination of your contract of insurance.

You also have a duty to tell us immediately if at any time after your contract of insurance has been entered into, varied or
renewed with us, any of the information given in the Proposal Form (or when you applied for this insurance) is inaccurate or
has changed.

If you misrepresented any facts to us before the policy is entered into, examples of the actions that may be taken by us
against you include the following:
 declare your policy void from inception (which means treating it as invalid), and we may not return any premium;
 cancel this policy and return any premium less our cancellation charge or recover any unpaid premium;
 remove one or more named drivers from your policy and adjust your premium accordingly;
 recover any shortfall in premium;
 not pay any claim that has been or will be made under the policy; or
 be entitled to recover from you the total amount of any claim already paid under the policy or any claim we have to pay
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because of any relevant road traffic legislation, plus any recovery cost.

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What is covered?
Your insurance does not cover you against everything that can happen to your car. Below are the main types of cover
available in the market. This policy covers for Third Party Only.

Third Party, Third Party

Page Basic Cover: Comprehensive
Fire and Theft Only
5 Section A: Loss or Damage to Your Own Car
1. a. Events We Cover
(i) accidental collision or overturning ✔ X X
(ii) collision or overturning caused by
✔ X X
mechanical breakdown
(iii) collision or overturning caused by wear
✔ X X
and tear
(iv) impact damage caused by falling objects
✔ X X
subject to certain exclusions
(v) fire, explosion or lightning ✔ ✔ X
(vi) breakage of windscreen, windows or sunroof
✔ X X
including lamination / tinting film
(vii) burglary, housebreaking or theft ✔ ✔ X

(viii) malicious act ✔ X X

(ix) while in transit (limited cover) ✔ X X

1. b. Events We Do Not Cover ✔ ✔ X

2. Basis of Settlement (how we will settle your claim) ✔ ✔ X

3. Towing Costs (to a repairer or safe place) ✔ ✔ X

6 to 8 Section B: Liability to Third Parties ✔ ✔ ✔

6 to 7 1. a. What is Covered (by this section) ✔ ✔ ✔
6 to 8 1. b. What is Not Covered (by this section) ✔ ✔ ✔
6 2. Limits of Our Liability (the maximum that we pay) ✔ ✔ ✔
3. Cover for Legal Personal Representatives (if you are
7 ✔ ✔ ✔
dead)
7 4. Maximum Legal Costs (if approved) ✔ ✔ ✔
7 5. Rights of Recovery ✔ ✔ ✔
8 Section C: No Claim Discount ✔ ✔ ✔
9 to 10 Section D: General Exceptions (what is not covered by the
policy)
✔ ✔ ✔
11 to 14 Section E: Conditions (terms that you must comply with)
✔ ✔ ✔
14 to 15 Section F: Definitions (explains the words in bold)
✔ ✔ ✔
16 to 19 Section G: Endorsements (additional terms that we may impose
on you or additional covers if you have paid Optional Optional Optional
additional premium)

Key: ✔= applicable X = not applicable

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What this policy does not cover?

These are referred to as ‘Exceptions’ in your policy and there are two sections where you can find them in your Private
Car Third Party Policy:
o Section B1b – see ‘What is Not Covered’ (pages 6 to 8: applicable to Third Party Only policy)
o Section D – see ‘General Exceptions’ (pages 9 to 10: applicable to Third Party Only policy)

There are generally three reasons why we put these exceptions in your basic Private Car Third Party Policy:
1. Cover is not provided for the exceptions. We have to charge additional premium if we agree to cover you for any of
these exceptions. An example of the exceptions which is not covered by your basic Private Car Third Party Policy
but which may be covered if you pay additional premium is:
• use outside Malaysia, Singapore or Brunei {see Section D – ‘General Exception 6’ (page 9)}.

2. There are other risks which are not covered by the basic Private Car Third Party Policy or by any of its extensions.
We would have to issue a different policy if you want these types of cover. For example, the following are not
covered by your Private Car Third Party Policy but can be covered under a different type of policy:
• carriage of goods must be covered under a Commercial Vehicle Policy; and
• hire or reward must be covered by taxi or hired car policy.

3. We cannot and do not cover certain risks at all. Some examples of these can be seen in Section D – ‘General
Exceptions’ (pages 9 to 10) such as:
• war, nuclear fission or fusion;
• risks that are against public policy or against the law; and
• drunk driving.

How can your car be used?

Since this is a Private Car Third Party Policy, your policy only covers you if your car is used for “social, domestic and
pleasure purposes and for the policyholder's business”. This is clearly stated in the Certificate of Insurance under the
heading “Limitation as to Use”.

The following are some examples of how your car can be used:
 to visit relatives and friends, for shopping etc.; and
 for some limited business use such as getting to and from work, and meeting customers.

However, we will not cover you, for example, if you use your car in the following manner:
 as a private taxi by charging fares to carry passengers;
 as a hire car by charging rental to use your car;
 to carry any goods in connection with any trade or business other than samples. You must buy a Commercial
Vehicle Policy to cover for this use;
 for motor trade (use for showroom display and for test-drive);
 to practise for or to take part in any race, rally, pacemaking, reliability trial or speed test; and
 use on any racetrack.

Who can drive your car?

 Practically anyone can drive your car as long as the driver:
• has a valid licence of the relevant class to drive and is not disqualified to drive by law or for some other reason
{(see exclusion on Unlicensed Drivers in Section D – ‘General Exception 1’ (page 9)};
• has your permission to drive (see definition of Authorised Driver in page 14); and
• complies with all the terms and conditions of this policy.
 If you or your authorised driver is not qualified to drive or breach any of the terms and conditions, your claim may
be rejected. If we are compelled by law to pay, we can recover any sum(s) paid and any expenses incurred from
you or your authorised driver.

In which territory is your car covered?

This insurance you have purchased only covers you in Malaysia, Singapore and Brunei in accordance to the laws of
Malaysia. This territorial limitation may be specially extended only upon your request and accepted by Us, and confirmed
by way of endorsement to this Policy.

Note that if you intend to drive your car into Singapore, you are required by Singapore’s law to have cover against Legal
Liability to Passengers (LLP). Since LLP is not covered by the basic Private Car Third Party Policy, you MUST purchase
Endorsement 100 (see page 18), which provides a limited cover for your liability for death or bodily injury of passengers.

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When is your cover effective?

This insurance is effective from the time of purchase of cover or at the agreed time of commencement, until the expiry
date. The period of insurance will be printed in the Policy Schedule and related documents. If there is any change to
these dates, it will be officially shown in an Endorsement issued by us.

What is No Claim Discount (“NCD”)?

This is a form of premium discount for not having made a claim during the preceding period of your insurance (provided
the period of insurance exceeds one year). The scale of NCD applied is specifically mentioned in the policy.

The applicable NCD can be checked with us or the Central NCD Database (“CND”) at https:// www.mycarinfo.com.my
/ncdcheck/online before the purchase of your Private Car Third Party Policy.

Do’s and Don’ts – after you have had an accident

 Do:
• inform us as soon as possible if you are involved in an accident with another road user of property or where a
third party is injured and the event may give rise to a claim;
• report all accidents to the police within 24 hours as required by law;
• immediately submit to us all letters, claims, writs and summons which you have received from third parties as
a result of the incident;
• remove your car to a PIAM Approved Repairer ( P A R S ) or our approved panel repairer;
• fully complete the relevant sections of your claim form – do not put “refer to police report”.

 Don’t:
• negotiate, admit or repudiate any claim without our consent (see Condition 2 in page 12).

Condition 2 of your policy (see page 12) spells out the do’s and the don’ts after an accident in more detail.

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PRIVATE CAR
THIRD PARTY
POLICY
Our agreement with You
A. Where Your Car is used for any purpose that is not related to Your trade, business or profession, the
following applies:

Consumer Insurance Contract

This Policy is issued in consideration of the payment of premium as specified in the Policy Schedule and
pursuant to the answers given in Your Proposal Form (or when You applied for this insurance) and any
other disclosures made by You between the time of submission of Your Proposal Form (or when You
applied for this insurance) and the time this contract is entered into. The answers and any other
disclosures given by You shall form part of this contract of insurance between You and Us. However, in
the event of any pre-contractual misrepresentation made in relation to Your answers or in any disclosures
given by You, only the remedies in Schedule 9 of the Financial Services Act 2013 will apply.

This Policy reflects the terms and conditions of the contract of insurance as agreed between You and Us.

B. Where Your Car is used for purposes related to Your trade, business or profession, the following applies:

Non-Consumer Insurance Contract

This Policy is issued in consideration of the payment of premium as specified in the Policy Schedule and
pursuant to the answers given in Your Proposal Form (or when You applied for this insurance) and any
other disclosures made by You between the time of submission of Your Proposal Form (or when You
applied for this insurance) and the time this contract is entered into. The answers and any other
disclosures given by You shall form part of this contract of insurance between You and Us. In the event of
any pre- contractual misrepresentation made in relation to Your answers or in any disclosures made by
You, it may result in avoidance of Your contract of insurance, refusal or reduction of Your claim(s),
change of terms or termination of Your contract of insurance.

This Policy reflects the terms and conditions of the contract of insurance as agreed between You and Us.

Section A: Loss or Damage to Your Own Car

As the coverage purchased under this policy is Third Party only, Section A is not applicable
to you.

Section A provide details under the following headings

1a: Events We Cover
1b: Events We Do Not Cover

2: Basis of Settlement (Applicable to Comprehensive Policy Only)

3: Towing costs
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Section B: Liability to Third Parties

This section explains what is covered and not covered under Section B.

1a: What is Covered? 1b: What is Not Covered?

These exceptions are specific to Section B and are

We will indemnify You and / or Your Authorised
in addition to the Exceptions stated in Section D of
Driver for the amount which You and / or Your
this Policy and any other applicable
Authorised Driver are legally liable to pay any third
Endorsements. We will not pay for:
party (including third party’s costs and expenses)
for:
(i) death or bodily injury to any passenger being
carried for hire or reward;
(i) death or bodily injury to any person except
those specifically excluded under this Policy;
(ii) death or bodily injury to any person where
and / or
such death or injury arises out of and in the
course of the employment of such person by
(ii) damage to property except those specifically
You or by Your Authorised Driver;
excluded under this Policy

as a result of an Incident arising out of the use of Under the Road Transport Act 1987, this
Your Car on a Road. This cover is extended to Policy shall not be required to cover,
Your Authorised Driver provided Your Authorised except in the case of a motor vehicle in
Driver also complies with all the terms and which passengers are carried for hire or
conditions of this Policy. reward or by reason of or in pursuance of
a contract of employment, liability in
respect of death of or bodily injury to
persons being carried in or upon or
2: Limits of Our Liability entering or getting onto or alighting from
the motor vehicle at the time of the
occurrence of the event out of which the
We will pay the following for any one claim, or series claims arise.
of claims arising from one Incident, in any one
Period of Insurance:
In the course of employment – Any
(i) unlimited amount for death or bodily injury to person who is injured / dies (whether as
third party; and / or passenger or otherwise) while on the job
(ii) up to a maximum of RM3 million for third party and is in or on the said Car as part of his /
property damage. her employment e.g. car wash worker,
mechanic etc.
For an additional premium, the limits of
liability for third party property damage can
be extended up to RM20 million
(iii) damage to property belonging to or in the
(Endorsement 105).
custody of or control of or held in trust by
You or Your Authorised Driver and / or
any member of Your or Your Authorised
Driver’s Household;
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3: Cover for Legal Personal Representatives 1b: What is Not Covered?

Following the death of any person covered under (iv) liability to any person being carried in or
this Policy, We will indemnify that person's legal upon or entering or getting onto or alighting
representatives for liability covered under this from Your Car unless he / she is required
Section, provided such legal representatives comply to be carried in or on Your Car by reason
with all the terms and conditions of the Policy. of or in pursuance of his / her contract of
employment with You or Your Authorised
Driver and / or his / her employer;

4: Legal Costs In pursuance of the contract of

employment – The passenger is
required to be carried to a destination in
If You or Your Authorised Driver is charged for order to carry out the job as spelt out in
reckless and dangerous driving or careless or his / her contract of employment.
inconsiderate driving under the Road Transport Act
1987 or any other offence related to the said
Incident, We will pay legal costs incurred up to a
maximum of RM2,000 to defend You or Your Liability to passengers other than:
Authorised Driver provided always that such costs a) passengers carried for hire or
are incurred in Malaysia, the Republic of Singapore reward;
or Negara Brunei Darussalam, and that cost has b) employees in the course of
been incurred with Our prior agreement in writing. employment; or
c) Your or Your Authorised Driver’s
We will only pay for legal cost and We will not pay
Household member unless he / she
for any penalty imposed on You or Your
is required to be carried in Your Car
Authorised Driver.
by reason of or in pursuance to a
contract of employment;
may be insured separately for additional
5: Rights of Recovery premium under Endorsement 100. If
You have insured such liability, You will
need to refer to the full text of
Endorsement 100: Legal Liability to
We have a right to refuse to indemnify You or Your Passengers as to what this
Authorised Driver if either of You commit a breach Endorsement covers or excludes and
of any Policy conditions or where the claim falls the applicable conditions.
outside the scope of cover provided by Us under
this Policy. However, if We are legally required to
pay any judgment sum in respect of a claim under
Section B of this Policy because of laws in force in (v) liability caused by a passenger travelling
Malaysia, Republic of Singapore or Negara Brunei in or alighting from Your Car;
Darussalam, which We would otherwise not have to
pay, We have the right to ask You or Your Liability for accidents caused by Your
Authorised Driver to repay to Us the amount of passengers may be insured separately
that payment and any costs We have incurred in for additional premium under
connection with the claim. Endorsement 72. You will need to refer
to the full text of Endorsement 72: Legal
Liability of Passengers for Negligent
Acts as to what this Endorsement
covers or excludes and the applicable
conditions.

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1b: What is Not Covered?

(vi) any claims brought against You by any

driver of Your Car, whether authorised or
not;

(vii) any claims brought against any person in

any country in courts outside Malaysia, the
Republic of Singapore or Negara Brunei
Darussalam; and / or

(viii) all legal costs and expenses which are not

incurred in or recoverable in Malaysia, the
Republic of Singapore and Negara Brunei
Darussalam.

Section C: No Claim Discount

This section spells out the reward system known as the “No Claim Discount”.
1. No Claim Discount (NCD)
If You have insured Your Car for a continuous period of 12 months and You or anyone else did not
make any claim under this Policy during that time, a NCD will be applied at each renewal. The
applicable NCD will increase with each renewal if You continue to have claim free years as follows:

Claim Free Year of Insurance NCD Entitlement

After 1 continuous claim free year 25%
After 2 continuous claim free years 30%
After 3 continuous claim free years 38 1/3%
After 4 continuous claim free years 45%
After 5 continuous claim free years and beyond 55%

2. One Claim and Your NCD is Down to Zero

If You or anybody else meet with an Incident which will give rise to a claim on this Policy, the NCD
entitlement that You have accumulated would drop to zero at the next renewal and Your NCD will start
all over again. If a claim is received after the NCD has been applied, We shall be entitled to recover the
NCD given from You.

3. Exception to this Rule

Your NCD will not be affected even if a claim is made if:
 We are of the opinion that You are not at fault for causing the loss;
 the offending vehicle is identifiable and is not a vehicle used for carriage of passengers for hire
or reward (for example taxis, hire cars, public buses, stage buses, school buses and factory
buses for hire);
 the offending vehicle is insured by a Malaysian licensed insurer; and
 there is no death or personal injury claim involved.

4. Your NCD is not Transferable

The NCD is personal to You which means that if You were to sell Your Car and We agree to transfer
this Policy to the new owner, Your NCD cannot be transferred for the benefit of the new owner.

5. Non-utilisation of NCD
For every year that the NCD is not utilised by You, the NCD accumulated and applicable for this Policy
will be reversed in accordance with the scale set out in the table in clause C1 above.
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Section D: General Exceptions - these apply to the whole Policy

This section lists down circumstances under which this Policy does not provide cover at the time of
happening of the Incident. This is in addition to those already listed in Section B1b (see pages 6 to 8).

1. Unlicensed Drivers
There is no cover under this Policy if You or Your Authorised Driver do not have a valid driving licence
to drive Your Car. This will not apply if You or Your Authorised Driver have an expired licence but are
not disqualified from holding or obtaining such driving licence under any existing laws, by-laws and
regulations.

2. Alcohol, Drugs and Other Intoxicating Substances

There is no cover under this Policy if You or Your Authorised Driver is under the influence of alcohol
or intoxicating liquor, narcotics, dangerous drugs or any other deleterious drugs or intoxicating
substance to such an extent that You or Your Authorised Driver are incapable of having proper control
of Your Car.

You or Your Authorised Driver shall be deemed as incapable of having proper control of Your Car
if after a toxicology or equivalent test, it is shown that the alcohol level in the breath, blood or urine of
You or Your Authorised Driver is higher than the prescribed limit pursuant to Section 45 G(1) of the
Road Transport Act 1987 of 80mg of alcohol in 100ml of blood (or equivalent in respect of breath or
urine) or other equivalent legislation that is in force at the material time.

3. Fraud and Exaggerated Claims

If any claim is in any part fraudulent or exaggerated, or if You or anyone acting on Your behalf, uses
fraudulent means to get any benefit under this Policy, the entire claim will not be paid or payable. If We
are required to make payment of any such claim to a third party, We shall be entitled to recover the sum
paid and any costs incurred from You.

4. Unlawful Purpose
There is no cover under this Policy if You or Your Authorised Driver use Your Car for an unlawful
purpose or to attempt an unlawful purpose i.e. in violation of the criminal law or a recognised law of the
country where Your Car was being used.

5. Use for Racing etc.

There is no cover under this Policy if You use or You allow Your Authorised Driver to use Your Car:
a. to practise for or to take part in any motor sport, competition (other than treasure hunt), rally,
pacemaking, reliability trial or speed test; or
b. on any racetrack.

For an additional premium, Your Policy can be extended to cover the use of Your Car for reliability
trial or competition if You purchase the prescribed extension cover {Endorsement 24(d)}.

6. Use Outside Malaysia

Unless We provide otherwise, this insurance does not cover You in respect of claims arising whilst Your
Car was being used or driven outside Malaysia, the Republic of Singapore and Negara Brunei
Darussalam. In Malaysia, Our liability under this Policy is governed by the Road Transport Act 1987 and
the terms and conditions of this Policy, and Our liability outside Malaysia is governed by the terms and
conditions of this Policy only.

For an additional premium, Your Policy can be extended to cover the use of Your Car in Thailand or
Kalimantan only if You purchase the prescribed extension cover (Endorsements 101(a) and 102).
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7. War Risk
There is no cover under this Policy for any loss or liability (including any cost of defending any action)
connected in any way directly or indirectly to:
a. war, invasion, acts of foreign enemies, hostilities or warlike operation (whether war is declared or not),
civil war, Act of Terrorism, mutiny, rebellion or revolution; or
b. strike, riots or civil commotion assuming the proportion of or amounting to an uprising, insurrection or
military or usurped power.

8. Nuclear Risk
There is no cover under this Policy for any accident, loss or damage to any property or any loss or liability
arising therefrom (including consequential losses and costs of defending any actions) connected in any way
with operations using the nuclear fission or fusion process, or handling of radioactive material. This
includes, but is not limited to:
a. the use of nuclear reactors such as atomic piles, particle accelerators or generators and similar devices;
b. the use, handling or transportation of radioactive material in relation to any Act of Terrorism;
c. the use, handling or transportation of any weapon or explosive device employing nuclear fission or
fusion; or
d. the use, handling or transportation of radioactive material.

9. Contractual Liability
We will not pay for any liability that arises by virtue of an agreement but for which We would not have
been liable in the absence of such agreement.

10. Unauthorised Driver

We will not pay for any Incident, loss, damage or liability caused, sustained or incurred whilst Your Car, in
respect of which indemnity is provided by this Policy, is being driven by any person other than an
Authorised Driver or person driving on Your order or with Your permission.

11. Sanction Limitation and Exclusion Clause

We shall not be liable to pay any benefit under this Policy to the extent that such cover, payment of such
claim or such benefit would expose Us to any sanction, prohibition or restriction under United Nations
resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom
or United States of America.

12. Cyber Loss Limited Exclusion Clause (IUA 09-082)

1. Notwithstanding any provision to the contrary within this Policy, this Policy excludes any Cyber Loss.
2. Cyber Loss means any loss, damage, liability, expense, fines or penalties or any other amount directly
caused by:
2.1 the use or operation of any Computer System or Computer Network;
2.2 the reduction in or loss of ability to use or operate any Computer System, Computer Network or
Data;
2.3 access to, processing, transmission, storage or use of any Data;
2.4 inability to access, process, transmit, store or use any Data;
2.5 any threat of or any hoax relating to 2.1 to 2.4 above;
2.6 any error or omission or accident in respect of any Computer System, Computer Network or
Data.
3. Computer System means any computer, hardware, software, application, process, code, programme,
information technology, communications system or electronic device owned or operated by the Insured
or any other party. This includes any similar system and any associated input, output or data storage
device or system, networking equipment or back up facility.
4. Computer Network means a group of Computer Systems and other electronic devices or network
facilities connected via a form of communications technology, including the internet, intranet and virtual
private networks (VPN), allowing the networked computing devices to exchange Data.
5. Data means information used, accessed, processed, transmitted or stored by a Computer System.
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Section E: Conditions - These apply to the whole Policy

This section spells out the terms and conditions that You must observe to ensure this insurance remains
effective. Basically these conditions are of three types:
 What You must do
 What You must not do
 What We can do

Conditions Precedent to Policy Liability

The following conditions are conditions precedent to Our liability to indemnify You under this Policy and
have to be observed by You strictly. We can repudiate this Policy and / or will not pay claims under the
Policy if You breach any of the relevant conditions. These conditions also apply to Your Authorised Driver
and any legal representative who seek indemnity under this Policy.

1. Duty of Disclosure
The duty of disclosure is different for a Consumer Insurance Contract and for a Non-Consumer
Insurance Contract. They are separately outlined below:

A. Consumer Insurance Contract

Where You have applied for this insurance wholly for purposes unrelated to Your trade, business or
profession, You had a duty to take reasonable care not to make a misrepresentation in answering the
questions in the Proposal Form (or when You applied for this insurance) i.e. You should have
answered the questions fully and accurately. Failure to have taken reasonable care in answering the
questions may result in avoidance of Your contract of insurance, refusal or reduction of Your claim(s),
change of terms or termination of Your contract of insurance in accordance with Schedule 9 of the
Financial Services Act 2013. You were also required to disclose any other matter that You knew to be
relevant to Our decision in accepting the risks and determining the rates and terms to be applied.

You also have a duty to tell Us immediately if at any time after Your contract of insurance has been
entered into, varied or renewed with Us, any of the information given in the Proposal Form (or when
You applied for this insurance) is inaccurate or has changed.

B. Non-Consumer Insurance Contract

Where You have applied for this insurance for purposes related to Your trade, business or profession,
You had a duty to disclose any matter that You know to be relevant to Our decision in accepting the
risks and determining the rates and terms to be applied, and any matter a reasonable person in the
circumstances could be expected to know to be relevant, otherwise it may result in avoidance of Your
contract of insurance, refusal or reduction of Your claim(s), change of terms or termination of Your
contract of insurance.

You also have a duty to tell Us immediately if at any time after Your contract of insurance has been
entered into, varied or renewed with Us, any of the information given in the Proposal Form (or when
You applied for this insurance) is inaccurate or has changed.

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 Private Car Third Party Policy

2. Accidents and Claims Procedures

If Your Car is involved in any Incident that could lead to a claim under this Policy, You must do the
following:

a. Notify Our claims department of the Incident and get a Claim Form. You must notify Us of the
Incident as soon as possible but in any event:
 Within seven (7) days if You are not physically disabled or hospitalised following the
Incident; or
 Within thirty (30) days or as soon as practicable if You are physically disabled and
hospitalised as a result of the Incident.
We may allow a longer notification period if You can provide specific proof and justification for
the delay.

b. Report the Incident to the police as required by law and do all that is required to assist the
police authorities to secure a conviction against the offender.

c. Complete the Claim Form in full and return it to Us within twenty-one (21) days from the date of
Your notification as per (a) above. You are required to answer all the questions in detail in all
applicable sections and provide Us with all the necessary documents to support Your claim.
We will not be held responsible if there is any delay on Your part to submit the Claim Form duly
completed together with all the necessary documents.
A longer claims submission period may be allowed by Us subject to specific proof and
justification by You for the delay.

d. If there are any claims made against You by a third party, You must immediately notify Us of
the same and You must send to Us any notification of claim, notice of impending prosecution or
inquest, summons, writ or any letters from the solicitors of the third party as soon as You
receive such documents, but in any event within fourteen (14) days from the date of receipt of
any of the documents.

You must not do any of the following:

 Admit any responsibility for any Incident; or
 Negotiate or settle any claims made against You by a third party, unless We write and inform
You that You can.

We will decide whether to negotiate, defend or settle, in Your name, Your Authorised Driver’s name
and / or on Your behalf, any claims made against You or Your Authorised Driver by a third party. If in
Our assessment the third party claim made against You or Your Authorised Driver for property
damage will exceed the limit of liability of RM3 million, We will pay the full amount of Our liability to
You or the third party and hand over the further conduct of any defence, settlement or proceeding to
You completely. After doing so We will not be liable under this Policy to make any more payments to
You or any claimant or any other person arising from the same Incident.

The conditions above also apply to anyone else who wishes to claim under the terms and
conditions of this Policy. “Anyone else” may refer to personal representative or administrator /
estate of the policyholder.
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 Private Car Third Party Policy

3. Cancellation
Either You or We may cancel this Policy at any time during the Period of Insurance.

a. Cancellation by You:
 You can cancel this Policy at any time by returning the Certificate of Insurance (CI) to Us or,
if the CI has been lost or destroyed, You must provide Us with a duly certified Statutory
Declaration (SD) to confirm this.

 After returning the CI or SD You will be entitled to a refund of premium if no claim was incurred
prior to cancellation. Your refund will be the difference between the total premium and Our
customary short-period rates calculated for the time We were on risk until the date We
received the CI or SD:

Period of Insurance Refund of Premium

Not exceeding 1 week 87.5% of the total premium
Not exceeding 1 month 75.0% of the total premium
Not exceeding 2 months 62.5% of the total premium
Not exceeding 3 months 50.0% of the total premium
Not exceeding 4 months 37.5% of the total premium
Not exceeding 6 months 25.0% of the total premium
Not exceeding 8 months 12.5% of the total premium
Exceeding 8 months No refund of premium allowed

 The Policy will automatically lapse once You sell or dispose off Your Car because Your
insurable interest in the Car will cease. If You want to transfer the Policy to the new buyer,
You have to get Our prior consent.

b. Cancellation by Us:
 We may also cancel this Policy by giving You fourteen (14) days notice in writing by
registered post to Your last address known to Us.
 After returning the CI or SD You will be entitled to a refund premium for the unexpired period
calculated on a pro-rata basis from the date We receive the CI or SD from You to the expiry
date of the Policy.

There will not be any refund of premium for any cancellation of Policy (either by You or by Us) if
You have paid the Minimum Premium only or if a claim has been made on this Policy.

4. If there is More Than One Insurance Covering the Same Car

a. You must inform Us in writing if You have taken out any other insurance in respect of Your Car
during the Period of Insurance.
b. If a claim arises under this Policy and such a loss is also claimable under the other insurance
policy(ies) taken by You, We will only contribute Our rateable proportion of the whole loss. We will
not be liable to pay the claim first and then seek recovery from the other co-insurers who is / are
also liable for the loss.

5. Subrogation
We are entitled to take over all rights and remedies that You may have against any third party who
caused the loss. We shall have the absolute discretion in the conduct of any proceedings, at Our own
costs, against the third party and in the settlement of any such claim and You shall give Us such
information and assistance as We may require from time to time including assigning all rights to take
action in Your name. You must however give Us Your full cooperation to protect these rights and
provide all assistance and take such steps as We require.
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 Private Car Third Party Policy

6. Dispute Resolution
If the disputed sum is less than RM10,000, You may refer the matter to the Ombudsman for Financial
Services to resolve the dispute.

7. Other Matters
We will only be liable to indemnify You under this Policy if You:

a. Comply with all the terms and conditions of this Policy. These conditions are also applicable to
Your Authorised Driver and any legal representative who seek protection under this Policy;

b. Maintain Your Car in a reasonably efficient and roadworthy condition. You must get Our consent if
You make any modification that will enhance or in any way affect the performance of Your Car;

c. Take reasonable care to avoid any situation that could result in a claim. This Policy will not cover
You if You or Your Authorised Driver are reckless i.e. where You recognise a serious risk but
deliberately do not take steps to prevent it. This includes but is not limited to leaving Your Car
unattended while unlocked or with ignition keys left in or on Your Car; and

d. Make Your Car available to Us for inspection at all reasonable times upon request.

8. Prevalent Policy Wording

For avoidance of doubt, the English version of this Policy wording will prevail over the Bahasa Malaysia
version at all times.

Section F: Definitions of words highlighted in the Policy

This section explains what We mean by the words printed in bold in this Policy.

In this Policy, Schedule and Certificate of Insurance, unless the context otherwise requires, the following
words shall have the meanings as defined below.

1. Act of Terrorism
This refers to an act by any person(s) or group that uses force or violence and / or the threat of force or
violence, whether they are acting alone or on behalf of or in connection with any organisation(s) or
government(s) and done for political, religious, ideological, ethnic or similar purposes or reasons,
including the intention to influence any government and / or to put the public, or any section of the public,
in fear.

2. Authorised Driver
This refers to any person who drives Your Car with Your consent or permission provided he or she holds
a valid driving licence of the relevant type and is not disqualified to drive by law or for any other reason.

3. Car
This refers to the motor vehicle described in the Schedule and includes the manufacturer’s standard
options and accessories fitted to it and any other non-standard options or descriptions that are specifically
listed in the Schedule.

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 Private Car Third Party Policy

4. Certificate of Insurance
This certificate is a prescribed form that We are required to issue to You under the Road Transport Act
1987 and it outlines the particulars of any conditions subject to which the Policy is issued.

5. Endorsement
This refers to the document that We issue to You to confirm any changes or extensions of the coverage to
the basic Policy.

6. Household
This refers to all members of Your or Your Authorised Driver’s immediate family i.e. spouse, children
including legally adopted children, parents, brother(s) and sister(s) staying under one roof with You in the
case of Your immediate family, or with Your Authorised Driver, in the case of his immediate family.

7. Incident
Any event which could lead to a claim under this Policy.

8. Limitations as to Use
According to Your Certificate of Insurance (CI), Your Car can only be used for “Social, domestic and
pleasure purposes and for the policyholder's business”. The CI also states that “The Policy does not
cover use for hire or reward, racing, pacemaking, reliability, trial speed-testing, the carriage of goods other
than samples in connection with any trade or business”.

9. Minimum Premium
The minimal premium described in the Schedule.

10. Ombudsman for Financial Services (OFS)

This is an independent body that provides a free and efficient avenue to help settle financial disputes
between You and Us under this Policy as an alternative to the courts.

11. Period of Insurance

The period shown in the Schedule when the cover provided by this Policy is operative. Cover is only valid
from the actual time of purchase of the insurance Policy or from when You and We agree that cover
should commence.

12. Policy
Policy includes the Schedule, the Certificate of Insurance and all Endorsements specifically listed in
the Schedule.

13. Road
Section 2 of the Road Transport Act 1987 defines “Road” as “any public road and any other road to which
the public has access and includes bridges, tunnels, lay-bys, ferry facilities, interchanges, round- abouts,
traffic islands, road dividers, all traffic lanes, sidetables, median strips, overpasses, underpasses,
approaches, entrance and exit ramps, toll plazas, service areas, and other structures and fixtures to fully
effect its use”.

14. Schedule
This document shows Your name and address, the Period of Insurance, the sections of this Policy
which apply, the premium You have paid, the Car which is insured, the sum insured and details of any
extensions or Endorsements.

15. We, Our, Us

This refers to the licensed Insurance Company that is issuing You this Policy.

16. You, Your, Yourself

This refers to the policyholder or person described in the Schedule as “the Insured”.

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 Private Car Third Party Policy

Section G: Endorsements - applicable only if the Endorsement number is printed in

the Schedule

The following is a glossary of additional terms and conditions (known as Endorsements) that We may
impose on You or optional covers available that You may want to add to Your basic Policy by paying
additional premium. Note that only Endorsements with their numbers specifically printed in the Schedule
shall apply to this Policy.

Endorsement 14: Transfer of Interest

In consideration of the additional premium that You paid Us for this endorsement, We agree to transfer the
interest in this Policy on [state date] to [state name of transferee and NRIC No. / Business Registration No.]
of [state address] carrying on or engaging in the business or profession of whose proposal
and declaration dated [state date] shall be the basis of this contract.

Subject otherwise to the terms and conditions of this Policy.

Endorsement 18: Fleet Rated Risks – Cancellation of ‘No Claim Discount’

By virtue of the benefit of the Fleet Discount received, the No Claim Discount clause of this Policy is
cancelled.

Subject otherwise to the terms and conditions of this Policy.

Endorsement 22(a): Caravan / Luggage / Boat Trailers (Applicable to Private Car Third Party Policy only)

In consideration of the additional premium that You paid Us for this endorsement, We agreed that the
insurance provided under Section B of this policy shall extend to cover Caravan or Luggage or Boat Trailer
that is specified in the Schedule under the heading ‘Endorsement 22(a)’ while it is being used together
with Your Car.

This endorsement does not cover:

a. legal liability for death or bodily injury to any passenger in the specified Caravan / Luggage / Boat
Trailer unless such person is being carried by reason of or in pursuance of a contract of employment;
b. loss or damage to the contents of or anything being carried in the specified Caravan / Luggage / Boat
Trailer; and
c. loss or damage to the Caravan / Luggage / Boat Trailers being carried by the specified Trailer.

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 Private Car Third Party Policy

Endorsement 24(d): Reliability Trials, Competitions etc. (Third Party Cover Only)

In consideration of the additional premium that You paid Us for this endorsement, We agree that the
insurance provided under Section B of this Policy shall cover legal liability while Your Car is being used
for [state either reliability trials, competition] to be held at [state place / location] on [state date] organized
by [state name of organizer] including officially conducted practice for the event.

Endorsement 72: Legal Liability of Passengers for Negligent Acts

In consideration of the additional premium that You paid Us for this endorsement, We agree that the
insurance provided under Section B of this Policy will include legal liability incurred by any passenger in
Your Car on condition that the passenger:

a. is not driving Your Car;

b. is not entitled to indemnity under any other policy of insurance; and
c. complies with all the terms and conditions of this Policy as though he was You.

This endorsement does not cover:

a. death or bodily injury to any person who is employed by You or the passenger, and who dies or is
injured in the course of such employment;
b. damage to any property that belongs to or is held in trust or in the custody or control of You or the
passenger or which is being carried in Your Car; and / or
c. death or bodily injury to the driver or any other passenger travelling in Your Car at the same time.

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 Private Car Third Party Policy

Endorsement 100: Legal Liability to Passengers

In consideration of the additional premium that You paid Us for this endorsement, We shall pay towards You
or Your Authorised Driver’s liability to any person being carried in or upon or entering or getting into or
onto or alighting from Your Car except for:

a. death or bodily injury to any passenger being carried for hire or reward;

b. death or bodily injury to any person where such death or injury arises out of and in the course of the
employment of such person by You or by Your Authorised Driver;

c. damage to property belonging to or in the custody of or control of or held in trust by You or Your
Authorised Driver and / or any member of Your or Your Authorised Driver’s Household;

d. liability to any person who is a member of Your and / or Your Authorised Driver’s Household who is
a passenger in Your Car unless he / she is required to be carried in or on Your Car by reason of or in
pursuance of his / her contract of employment with You or Your Authorised Driver and / or his / her
employer;

e. liability caused by a passenger travelling in or alighting from Your Car;

f. any claims brought against You by any driver of Your Car, whether authorised or not;

g. any claims brought against any person in any country in courts outside Malaysia, the Republic of
Singapore or Negara Brunei Darussalam; and / or

h. all legal costs and expenses which are not incurred in or recoverable in Malaysia, the Republic of
Singapore and Negara Brunei Darussalam.

Condition of Cover
If at the time of Incident giving rise to a claim under this endorsement, Your Car is carrying passengers in
excess of the stated maximum number permitted by law, Our liability shall be limited to the number of
passengers specified for the vehicle as registered at the Road Transport Department.

If the number of passengers carried at the time of the happening of an Incident is more than the maximum
number permitted in the vehicle by law, We will not pay their claim in full. Any payment We make to any
claimant under this endorsement will be rateably reduced in the proportion of the legally permitted maximum
number of lawful passengers over the actual number of passengers carried, at the time of the Incident. The
difference between the sum paid by Us and the claim to be paid to each passenger claimant shall be borne
by You or Your Authorised Driver. The proportion We pay shall be calculated in accordance with the
following formula:

Number of passengers permitted by law X Total Claim Awarded

Actual number of passengers carried at time of Incident
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Endorsement 101(a): Extension of Cover to the Kingdom of Thailand

(Applicable to Private Car Third Party Policy only)

In consideration of the additional premium that You paid Us for this endorsement, We agree that the
insurance provided under Section B1a(ii) of this Policy shall cover liability while Your Car is being used in the
Kingdom of Thailand from the time of purchase on [state date] to midnight (Malaysian Standard Time) on
[state date]. The limit of liability that We provide under Section B1a(ii) will be up to a maximum of RM100,000
only.

This endorsement does not cover legal liability under Section B1a(i) while Your Car is being used in the
Kingdom of Thailand.

Endorsement 102: Extension of Cover to Kalimantan

In consideration of the payment of additional premium by You to Us, the geographical area of this Policy is
extended to include Kalimantan with effect from a.m. / p.m. on [state date] to midnight
(Malaysian Standard Time) on [state date] subject to the limit of liability of RM50,000 under Section B1a(i)
and B1a(ii).

Subject otherwise to the terms and conditions of this Policy.

Endorsement 105: Limits of Liability for Third Party Property Damage (TPPD)

In consideration of the additional premium that You paid Us for this endorsement, We agree to increase the
limit of liability provided under Section B2(ii) of this Policy to RM [state new limit] with effect from [state date].

Limits of liability in excess of RM3 million up to RM20 million is allowed subject to additional premium stated
as below:-

TPPD limits of Liability

From RM3 million up to RM4 million - 15% of Third Party Premium

Up to RM6 million - 30% of Third Party Premium
Up to RM10 million - 45% of Third Party Premium
Up to RM20 million - 60% of Third Party Premium

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Important Notice

1. You need to read this Policy carefully, and if any error or incorrect description is found herein, or if the
cover is not in accordance with Your wishes, You should inform Us immediately and return this Policy to
Us for alteration.

2. If You are not satisfied with the course of action taken by Us or decision made by Us, You may seek
recourse through Our Complaints Management Unit and alternatively, may seek redress or assistance
from the Ombudsman for Financial Services (OFS) or approach Bank Negara Malaysia’s
BNMLINK (Laman Informasi Nasihat dan Khidmat) addressed below:

a) Complaints Management Unit

Liberty General Insurance Berhad
Customer Service Executive, Customer Contact Centre
Liberty Insurance Tower,
CT9, Pavilion Damansara Heights,
3, Jalan Damanlela,
Pusat Bandar Damansara,
50490 Kuala Lumpur.
Tel : +603-2268 3333 or 1800 88 6333
Fax : +603-2268 2222

b) Ombudsman for Financial Services (OFS)

Level 14, Main Block
Menara Takaful Malaysia
No. 4, Jalan Sultan Sulaiman
50000 Kuala Lumpur
Tel : +603-2272 2811
Fax : +603-2272 1577

c) BNMLINK (Laman Informasi Nasihat dan Khidmat)

Bank Negara Malaysia
4th Floor, Podium Bangunan AICB,
No. 10, Jalan Dato’ Onn,
50480 Kuala Lumpur.
Tel : 03-2698 8044 (General Line) / 1 300 88 5465 (BNMLINK)
Fax : 03-2174 1515
e-Link : bnmlink.bnm.gov.my
Email : bnmlink@bnm.gov.my
Website: www.bnm.gov.my

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