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So, here’s the thing. Car insurance policy contains all sorts of different coverages to provide appropriate protection for the vehicle itself, the car owner as well as the authorized driver of the car, and the passengers. In this article, we are going to look at the Legal Liability of Passengers for Negligence Act. This act may be helpful in the case of incidents involving a third party and your vehicle, caused by your passenger.
2 Types of Legal Liability Protection in Car Insurance
Before going through the details of the additional coverage mentioned earlier, two prominent legal liability coverages will usually be taken into consideration when buying a new car insurance which are:
- Legal Liability to Passenger (LLP); and
- Legal Liability of Passenger (LLOP).
Below are the distinctions between these two additional premium plans:
| Legal Liability to Passenger (LLP) | Legal Liability of Passenger (LLOP) | |
| Meaning |
Covers legal liability against the car owner or authorized driver due to injury or death of a passenger resulting from the car owner’s or authorized driver’s negligence. |
Covers legal liability fees against the passenger due to injury or damage suffered by a third party as a result of the car passenger’s negligence. |
| Example |
If a car owner drives through a red light and gets into an accident resulting in severe injuries to the passenger, the passenger may decide to pursue legal action against the car owner. This protection will cover the associated fees. |
A car passenger recklessly opened the car door, causing a crash with a motorist and badly damaging his motorcycle. The motorist, as the third party, took legal action against the car owner; hence, this coverage will be used. |
| Cost | 25 percent of the premium for a basic third-party insurance policy. | RM7.50 per vehicle* |
*It is such a rare occasion that your passenger is the cause for damage to other road users, hence Legal Liability of Passenger (LLOP) is the cheaper option in legal liability protection.
What is Legal Liability of Passengers for Negligence Act (LLOP)?
Now, let’s dig deeper into this coverage to see when it might be helpful, what does it has to offer, and its significance.
Scenarios of Passenger’s Negligence Act; and How LLOP Works
Imagine a situation where your passenger injures a cyclist by opening the car door without carefully looking back. This is when this coverage can come in handy to cover the costs of damages to the third party, which in this case, is the unfortunate cyclist.
Simply put, it’s not your fault but your passenger’s. However, if the third party decides to take this matter legally, you, as the car owner, might have to bear the burden by using your own money to pay the claim if you did not include Legal Liability of Passengers (LLOP) coverage in your car insurance plan.
Another example, you are driving your car with your kids in the back seat. One of them rolls down the car window and throws a plastic bag out the window while the car is moving. The plastic bag then gets stuck on a motorcyclist’s visor, causing the rider to fall off his motorbike and get badly injured, with his vehicle damaged.
Even though it was your kid’s doing and not yours, legal action can be taken against you as a car owner for causing damage and injury to the rider. The charge might be a large amount. For that reason, paying an additional RM7.50 every year when you renew your car insurance will cover the costs in situation such as this.
Importance of Legal Liability of Passengers in Auto Insurance
This additional protection emphasizes, let’s admit, the least expected unfortunate events. However, liability insurance is worthwhile for total peace of mind. Moreover, Legal Liability of Passenger coverage will also safeguard your financial security, which can be affected by unforeseen occurrences while you are on the road.
Furthermore, both liability add-ons, LLP and LLOP, are mandatory in Singapore’s auto insurance policy. This means that vehicles from Malaysia entering the country must also be equipped with these protections to avoid legal consequences.
Renew Car Insurance at Qoala for Total Peace of Mind
Many people believe that LLP and LLOP for car owners in Malaysia are only useful when traveling to Singapore. While it is mandated by the Republic to have both liability protections to enter the country by car, these coverages are also practical within Malaysia.
With a slight increase to the sum of your car insurance plan, you will enjoy comprehensive insurance protection while traveling with your car. For more information on legal liability coverages in Malaysia, other add-ons, and basic coverages in auto insurance, contact us at Qoala for more info.
