Road Transport Act 1987 · Updated to 15 Oct 2023 · Part IV · Provisions Against Third Party Risks Arising Out of the Use of Motor Vehicles
91. Requirements in respect of policies
Feedback & supportIn plain English
A policy must be from an authorized insurer and cover liability for death or injury from using a motor vehicle on a road. An insurer paying for such death or injury also pays a hospital it knows treated the person. The cap is four hundred ringgit for each person treated as an inpatient and forty ringgit for each outpatient.
Summary · Drafted with AI, checked against the official text on 30 Sep 2026.
In order to comply with the requirements of this Part, a policy of insurance must be a policy which—
policy of insurance
“policy of insurance” includes a cover note. Motor vehicle users to be insured against third party risks
is issued by a person who is an authorized insurer within the meaning of this Part; and
insures such person, or class of persons as may be specified in the policy in respect of any liability which may be incurred by him or them in respect of the death of or bodily injury to any person caused by or arising out of the use of the motor vehicle or land implement drawn thereby on a road:
Provided that such policy shall not be required to cover—
liability in respect of the death arising out of and in the course of his employment of a person in the employment of a person insured by the policy or of bodily injury sustained by such a person arising out of and in the course of his employment; or
except in the case of a motor vehicle in which passengers are carried for hire or reward or by reason of or in pursuance of a contract of employment, liability in respect of the death of or bodily injury to persons being carried in or upon or entering or getting onto or alighting from the motor vehicle at the time of the occurrence of the event out of which the claims arise; or
any contractual liability.
Where any payment is made (whether or not with any admission of liability) by—
Road Transport 149
road
“road” means— (a) any public road and any other road to which the public has access and includes bridges, tunnels, lay-bys, ferry facilities, interchanges, roundabouts, traffic islands, road dividers, all traffic lanes, acceleration lanes, deceleration lanes, side-tables, median strips, overpasses, underpasses, approaches, entrance and exit ramps, toll plazas, service areas, and other structures and fixtures to fully effect its use; (b) for the purposes of sections 70 and 85, also includes a road under construction; and (c) for the purpose of sections 41, 42, 43, 44, 45 and 45A, also includes a parking place;
an authorized insurer under or in consequence of a policy issued under this Act;
the owner of a motor vehicle in relation to the user of which a security under section 93 is in force; or
the owner of a motor vehicle who has made a deposit under paragraph 90(5)(d), in respect of the death of or bodily injury to any person arising out of the use of a motor vehicle on a road, and the person who has so died or been bodily injured has to the knowledge of the authorized insurer or such owner, as the case may be, received treatment at a hospital, whether as an inpatient or as an outpatient, in respect of the injury so arising, there shall also be paid by the authorized insurer or such owner to such hospital the expenses reasonably incurred by the hospital in affording such treatment, after deducting from such expenses any moneys actually received by the hospital in payment of a specific charge for such treatment:
Provided that the amount to be paid by the authorized insurer or such owner shall not exceed four hundred ringgit for each person so treated as an inpatient or forty ringgit for each person so treated as an outpatient.
For the purposes of this subsection, the expression “hospital”
means an institution (not being an institution carried on for profit)
which provides medical or surgical treatment for inpatients and the expression “expenses reasonably incurred” means—
in relation to a person who receives treatment at a hospital as an inpatient, an amount for each day such person is maintained in such hospital representing the average daily cost for each inpatient of the maintenance of the hospital and the staff thereof and the maintenance and treatment of the inpatients; provided that in respect of a Government hospital which admits paying patients, “expenses reasonably incurred” means the amount chargeable to a member of the general public, in a ward of the class occupied by the person who received treatment, in
150 Laws of Malaysia ACT 333
accordance with the scale of fees from time to time in force at such hospital; and
in relation to a person who receives treatment at a hospital as an outpatient, reasonable expenses actually incurred.
Notwithstanding anything in any written law, a person issuing a policy of insurance under this section shall be liable to indemnify the person or class of persons specified in the policy in respect of any liability which the policy purports to cover in the case of that person or class of persons.
A policy shall be of no effect for the purposes of this Part unless and until there is delivered by the insurer to the person by whom the policy is effected a certificate (in this Act referred to as a
“certificate of insurance”) in the prescribed form and containing such particulars of any conditions subject to which the policy is issued and of any other matters as may be prescribed, and different forms and different particulars may be prescribed in relation to different cases or circumstances.