Ensuring commercial vehicles are properly insured is a legal requirement in Malaysia. Trucks and buses must carry motor insurance before they are allowed on public roads, including coverage for third-party liability to protect against injury or damage caused to others.
The General Insurance Association of Malaysia, or Persatuan Insurans Am Malaysia (PIAM), is the trade body representing all licensed general insurers in the country. PIAM issues official guidance, publishes industry statistics, and advocates for compliance with insurance regulations.
PIAM noted, “Motor insurance accounted for approximately 42.8 percent of total general insurance gross written premiums in the first half of 2025, generating RM5.3 billion in premiums. During the same period, Malaysia’s general insurance industry recorded gross written premiums of RM12.3 billion. In 2024, total premiums reached RM23.1 billion, with the motor segment providing the largest contribution in the market.”
The association has also highlighted the importance of safety compliance for vehicles returning to the road after accidents. PIAM stated, “We support RTD’s initiative to enforce stringent checks on repaired accident damaged vehicles and strongly advocate for transparency in ensuring that only vehicles deemed safe and fit for road use are allowed back into service,” referring to Malaysia’s Road Transport Department, which oversees vehicle inspections.
PIAM further noted, “Vehicle owners are encouraged to ensure that their vehicles are adequately insured by motor insurance, either by considering options from insurers or returning to the original insurer that declared the BER vehicle,” explaining that BER stands for Beyond Economic Repair, meaning vehicles damaged beyond cost-effective repair must be properly insured before being returned to the road.
For fleet operators and individual owners, adherence to insurance requirements and regulatory roadworthiness checks is essential. Vehicles that do not meet standards are not permitted back on the road until proper repairs are completed and insurance obligations are satisfied.
