Prepared by: Autoriti Monetari Brunei Darussalam
WHY MOTOR INSURANCE?
Everyone who owns a car would know that motor insurance or motor takaful is required as part of the annual vehicle registration renewal process. But not many would know why it is necessary? In Brunei Darussalam, according to Motor Vehicles Insurance (Third Party Risks) Act, Chapter 90, it is against the law for a motor vehicle to be on the road without the motor insurance coverage. There are two types of coverage offered in Brunei Darussalam:
a) Third party bodily injury and death
b) Third party property damage
c) Loss / damage to your own vehicle due
to fire, theft or accidental collision or
overturning or whilst in transit excluding
any sea route.
- Windscreen damages
- Flood, storm
- Excess protector
- Passengers' risks in your own vehicle
Note: Please check with your insurance/takaful provider regarding your coverage and the endorsements available to you
Accidents are bound to happen, but can become more complicated if one of the parties involved does not have motor insurance/Takaful. It is a question that some drivers that are not covered by motor insurance should ask themselves- "Can I bear the cost myself if I involved in accident?" According to a Q1 2015 report by RSRU, 38% out of the total car accidents involved were caused by, self-accidents and resulted in 2 fatalities. Being involved in a car accident with no insurance can be a costly mistake, however, when you have insurance, you will have options.
For example, you can make a claim with your insurance company for payment of damages and injuries if you carry the right motor insurance coverage. Also, with at least a third party liability cover, you may not have to repay the damage to the property from your own pocket and your insurance company will bear the cost. If you have an additional personal accident coverage, you may claim your medical bills to your insurance company provided your coverage is not lapsed.
RECENT TRENDS ON CAR ACCIDENTS AND CLAIMS
For the past 4 years, more than 3,000 cases of total accidents were reported each year. From 2013 to 2014, there was a 1.35% reduction in self-accident, there was a 4.3% increase in collision between cars. Meanwhile, in Q1 2015 alone, total accidents reported stood at 1,307, including cars, heavy vehicles, motorcycles and bicycles.
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