Driving anywhere in the world (and in Malaysia particularly) comes with its fair share of responsibility. Knowing what these duties are and what is expected of you can help you properly prepare for what’s ahead. Being an active or even passive driver in the country, you probably already know how crucial basic vehicle insurance coverage is and why you need it.
Moving further, however, there are some other essential facets of auto insurance coverage you may not be as familiar with. One of these is Legal Liabilities to Passengers LLTP or LLNP for short.
What Are Legal Liabilities To Passengers?
In very elementary terms, Legal Liabilities To Passengers or LLTP can be defined as a sort of special coverage you can take on in addition to your typical auto insurance coverage. The purpose of this particular addition is to protect you in the event of legal liabilities raised by your passengers should you be involved in an accident that resulted from your actions. While this scenario might seem a bit extreme, it happens more often than you might think. Consequently, it is always ideal for making provisions for this.
Why You Need To Get Legal Liabilities To Passengers (LLTP)
On the surface, taking on the extra coverage that Legal Liabilities To Passengers offers might seem unnecessary. After all, if you’re a driver who already has comprehensive insurance coverage, you’re likely already protected for it, right?
While a comprehensive policy certainly covers a lot of scenarios, it doesn’t extend to protecting you from legal liabilities suffered from your own passengers. Your policy states this fact succinctly in section B of your auto insurance coverage document. In other words, assuming you had friends or acquaintances in your vehicle and got involved in an accident through your own fault, should the victims sue you and you don’t have Legal Liabilities To Passengers coverage, that expense will have to be covered out of your own pocket. Do you see why getting Legal Liabilities To Passengers mightn’t really overkill now? Wait, there’s more!
Are Legal Liabilities To Passengers Policy Coverage Compulsory?
The answer to this question depends on where you plan to drive. While countries like Singapore demand that you take that additional coverage before you can drive around uninhibited, Malaysia allows drivers to ply the roads freely without Legal Liabilities To Passengers. However, looking beyond the legal aspects of whether you must have Legal Liabilities To Passengers or LLTP as a driver or not, there are certain variables that need to be put into consideration.
For instance, even though you won’t be getting any monetary reward or compensation for transporting friends and colleagues from one place to another, it is still your legal responsibility to ensure that they are safe from the moment you pick them up to when you drop them off. So by extension, if something were to happen to them during the period that they were in your care, they gain the right to sue you to court, particularly when they feel that the accident was your fault. From this perspective, getting LLTP almost becomes a necessity.
No one would ever wish to find themselves in any of the unpleasant scenarios described above. Be that as it may, it always pays to be at the ready and prepare for every eventuality. Generally speaking, LLTP/Legal Liabilities To Passengers usually costs no more than 25% of what you pay as premium for your basic Third-Party Insurance policy. So get in touch with your insurer and check out their LLTP/Legal Liabilities To Passengers policy today!