1. Rider's name isn't in the policyWhile we Malaysians love to share, you should be a little stricter when it comes to the people you lend your motorcycle. Not to be kiasu, but your motorcycle insurance policies will not compensate you for damages that your vehicle suffers while being ridden by someone who isn’t its Single Rider — that is, the person who is recognised by your policy as the owner or user of your vehicle.
You can opt to overcome this limitation with an ‘All Riders’ extension in your motorcycle insurance policy, which allows your motorcycle to be protected regardless of who is riding it when it is damaged. This will require a higher insurance premium payment, but if you’re a generous motorcycle owner who has no qualms about lending your vehicle to anyone who needs it, it is better to be safe than sorry!
2. Motorcycle's accessories/parts were stolenIt’s never a pleasant experience to wake up one morning and find that one of your beloved motorcycle’s tyres has been stolen. Nonetheless, if this happens, you may find yourself reaching out for your phone to call your insurance agent and inform them about the situation.
Be warned, though, that this call will probably not go as well as you want it to because motorcycle insurance policies traditionally DO NOT, we repeat, DO NOT cover the theft of motorcycle parts alone, unless the insured motorcycle has been stolen as well in the process or a special arrangement has been made with your insurer prior to the incident.
This doesn't mean that you should lie to your agent and report that the entire motorcycle has been stolen, of course, because that could lead to legal action being taken against you by your insurer for attempted fraud!
3. Damages caused by warThis may seem like a rather exaggerated scenario, given that Malaysia has been blessed with a war-free environment for a long time now, but it doesn’t hurt to be aware of this restriction.
Regardless of which degree of protection — be it Third Party, Third Party Fire and Theft, or Comprehensive coverage — your motorcycle insurance policy has, wars are not recognised as a cause of damages that can be covered by a policy.
However, you can certainly protect your motorcycle against malicious damages from riots, strikes and civil commotions or protests by opting to include add-ons which cover these circumstances in your policy. These may not be as devastating as a war, but they do occur more frequently can go awry very quickly.
4. Damages caused by riders under the influenceIt's too easy to forget the limitations of your insurance policy once you make the premium payment, given the “Relax lah, bro!” spirit that many of us Malaysians share.
This doesn't qualify as an excuse to forget that driving or riding under the influence of substances is dangerous and that your motorcycle insurance policy will not compensate you for damages suffered by your vehicle while it is being ridden by someone who is under such an influence.
You should also remember that doing so is illegal, and that according to Section 44(1) of the Road Transport Act 1987, causing injury to anyone while under the influence of substances like alcohol and drugs is an offence that could cost you three to ten years in prison and a fine of anywhere between RM8000 and RM20,000.
5. Accidents happen overseasUnfortunately, when it comes to motorcycle insurance policies, borders matter and international restrictions apply.
A motorcycle insurance policy does not include compensation for incidents or damages that are suffered abroad by default, such as while riding your motorcycle with your friends as part of a convoy heading up north into Vietnam or Laos. The policy is usually designed to work only within Malaysia, as it adheres to local laws and regulations specifically.
Some motorcycle insurance providers, like AIG, are able to slightly extend the area that is protected by your policy — allowing you to submit claims for damages suffered while in Brunei or Singapore as well. You can also purchase add-ons to your policy to increase the number of areas or countries in which your policy can be used. This is something that you should definitely clarify with your insurance agent when purchasing your policy.
6. Exaggerated claims“Wah! The accident scratched my motorcycle. Nevermind, just report the whole thing as damaged!”
This may sound like a perfectly reasonable thing to do. After all, though the accident caused your motorcycle only a small amount of physical damage, it will set you back far more in terms of the time you have to spend getting it repaired. So why not submit a larger claim amount?
One word: investigation. For every insurance claim that you submit, your motorcycle’s insurer will conduct an investigation with a claims adjuster to verify that the damages suffered are as described in the claim, are equal to the amount of compensation being requested and that the claim is supported by a verified police report.
If it is found that you exaggerated your claim amount, the claim itself can be rejected — and your motorcycle insurance policy might be cancelled or revoked to avoid the possibility of insurance fraud.
7. Damages caused nuclear disastersIf the nuclear disasters in Chernobyl and Fukushima taught us anything, it would be the fact that nuclear disasters occur when you least expect them to — and that once they do, they are almost impossible to contain and should never be taken lightly.
This is probably why motorcycle insurance policies DO NOT cover damages caused by nuclear disasters. Things are further worsened by the fact that damages from radioactive fallout tend to worsen over time, and it would be difficult for your insurer to continuously compensate you for this.
That doesn't mean you shouldn't have motorcycle insuranceThere you have it! Seven limitations and situations in which your motorcycle insurance cannot protect you in. While some of these can be managed by purchasing add-ons to your policy, others are non-negotiable — so you should take note of these to ensure that you use your motorcycle in a safe way to avoid future insurance claim complications.
These limitations do not contradict the fact that motorcycle insurance policies are still incredibly useful, however. All you have to do is purchase a policy that suits you and your lifestyle in the best possible manner, and Loanstreet is more than happy to help you. Just click on the image below to purchase/renew your road tax and motorcycle insurance.