5 Types of Insurance in Malaysia You Must Know

Kali terakhir diperbaharui February 15, 2023 oleh Hariz Hafiz
5 Types of Insurance in Malaysia You Must Know

How many types of insurance are there? When it comes to insurance or takaful, many people consider owning and paying for insurance every month as a burden. Despite the fact that there are various types of insurance available in Malaysia, a lot of people still shy away from it and view it as a luxury, rather than an essential need.

Types of Insurance in Malaysia You Need to Know, The Last Option Is a Must-Have

Fundamentally, insurance or takaful protection plays a vital role in life. Besides providing coverage for unexpected events, insurance also serves as a critical means of safeguarding your finances and long-term financial stability.

Therefore, you need to choose the best and most suitable insurance, according to your needs. This article will help you understand the types of insurance in Malaysia that you can consider.

1. Health Insurance

You never know when you might fall sick or encounter an accident. By having health insurance, it can at least alleviate or reduce the financial burden if you need to be hospitalized for treatment.

Basically, having medical insurance can provide financial protection – it can help you avoid paying high medical costs in Malaysia, especially in private hospitals. If you are admitted to the hospital, the medical card you have can cover your treatment costs. Medical treatment costs, especially in private hospitals, can be expensive.

By having a medical card or critical illness protection, the financial burden can be reduced, and it can prevent you from using your retirement savings or emergency funds.

2. Home Insurance

Property insurance, in general, can reduce the losses experienced by homeowners if a natural disaster occurs, such as flooding, fire, storm, lightning, and so on.

For example, a house fire can result in physical damage to the structure of the house and its contents. Therefore, it is important to have home insurance as it can reduce the losses experienced by the owner. Moreover, you do not have to worry about high repair costs.

Home insurance policies in Malaysia can be divided into three types:

Home Content Insurance

This policy provides coverage for all the equipment and household items in your home, including electronics, furniture, and other valuable items.

Homeowner Insurance Policy

This policy provides protection for the physical structure of the property, such as the walls, roof, foundation, and other building components, as well as the exterior structure.

Fire Insurance Policy

This policy provides coverage for property damage or loss caused by fire or lightning, but only for the structure of the home and not its contents.

types of insurance policy

3. Travel Insurance

Many people think that travel insurance is not that important since most of you already have medical insurance. But in reality, travel insurance is one of the important types of insurance in Malaysia.

Travel insurance can protect you from any financial risks or losses before or during your trip. Even if you already have medical insurance, it is still encouraged to get travel insurance before going on vacation. This is because both travel insurance and medical insurance offer their own advantages and benefits.

Unlike medical insurance, travel insurance offers more protection from risks that may occur while traveling abroad. Essentially, travel insurance offers protection from:

  • Personal accidents;
  • Cancellation or interruption of the trip (flight delay or missed);
  • Loss of personal belongings such as lost money or credit cards;
  • Damage to luggage or late arrival of luggage;
    Loss of passport;
  • Medical expenses or treatment costs in hospitals abroad;
  • Repatriation of remains and other benefits subject to your insurance policy.

4. Personal Accident Insurance

Regardless of whether it’s a workplace accident or a road accident, you may be exposed to the risk of accidents every day without even realizing it. Therefore, personal accident insurance is one type of insurance in Malaysia that you need to have.

Personal accident insurance generally plays an important role in providing protection against unexpected accident risks. If you are injured, permanently disabled, or die as a result of a road accident, this insurance will offer you cash compensation.

You can use this compensation to support your family by replacing lost income during the period you are unable to work. The following are some of the personal accident insurance coverage options that you can choose:

Death Due to Accident

If the policyholder dies due to an accident, the beneficiary will receive compensation based on the terms and conditions and the amount stated in the policy.

Permanent Disability Due to Accident

If the accident results in permanent disability, the policyholder is eligible to receive lifetime compensation depending on the level of disability.

Temporary (Total/Partial) Disability Due to Accident

The policyholder is also eligible to receive lifetime compensation if involved in an accident resulting in partial permanent disability depending on the level of disability.

5. Car Insurance and Motorcycle Insurance

You may already know the importance of insurance and are familiar with purchasing insurance. This is because it can be said that most Malaysians own a car or motorcycle.

If your car is damaged due to an accident, car insurance or motorcycle insurance coverage can prevent you from being burdened with high repair costs.

If there is damage due to an accident, for example, some or perhaps all of the repair costs for your car will be covered by the insurance company. This means that you do not have to spend money on repair work.

Special Perils

Special perils coverage is an additional protection in addition to the basic coverage offered by an insurance company. Typically, basic coverage will not protect a car from damage caused by natural disasters.

Therefore, you need to get special perils coverage to protect your vehicle from any risk of loss or damage, especially damage caused by natural disasters such as floods, storms, earthquakes, landslides, and so on.

Get Comprehensive Insurance Protection for You and Your Family at Qoala

Health insurance, home insurance, personal accident insurance, car insurance, motorcycle insurance or travel insurance – among the types of insurance in Malaysia that are important for peace of mind. In this uncertain economic situation, you are encouraged to have the insurance protection mentioned above.

If something happens to you, the insurance you have can protect you (and your finances). For example, if you fall ill, the medical card you have can be used to cover the cost of treatment in the hospital.

If you want to get comprehensive insurance protection, visit the Qoala website for more information. Qoala is an insurance comparison platform that offers a variety of the best insurance options in Malaysia. You can choose insurance from the best insurance companies at the lowest prices online!

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Personal finance management expert to help you manage your finances better!

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