While all car owners in Malaysia are required to renew their car insurance policies annually, there might arise situations where you may want to cancel the policy even before its expiration date. Is this permissible?
Yes, it is allowed to cancel your car insurance policy for various reasons, such as:
(a) Selling the car
(b) Opting to switch to another insurance company
(c) Incorrect activation of insurance coverage (e.g., intending to renew comprehensive insurance but mistakenly renewing third-party insurance)
What steps should you take to cancel your car insurance policy?
The process of cancelling your insurance policy can vary depending on whether you seek assistance from an agent or handle it independently. If you choose to cancel the policy on your own, the procedure may differ among insurance providers or takaful operators.
Here are the general steps to follow:
#1 Reach out to customer service:
Contact the customer service team of your insurance provider to understand the cancellation process and requirements.
#2 Cancel road tax if already renewed:
If your vehicle’s road tax is active, start by cancelling it at the nearest JPJ branch. Ensure you bring the road tax with you, as it is required for the cancellation process. Afterward, proceed to cancel the car insurance policy at any branch of your insurance company.
#3 Apply directly with the insurance company if road tax is not renewed:
If the road tax has not been renewed, you can inform your insurance company in writing to cancel the insurance. Most insurers offer a seven-day cancellation period, requiring you to present the original insurance certificate or provide a statutory declaration if the certificate is lost or destroyed.
#4 Refund:
Upon cancelling your insurance coverage, you will receive a refund based on the short-term rate offered by your insurance provider. Typically, the refund will be credited to your bank account within two to four weeks.
In conclusion, while cancelling your car insurance policy is permissible, it is crucial to make well-informed decisions when selecting your coverage and insurance provider. Conduct thorough comparisons among different insurers to ensure you choose the most suitable policy, thereby minimizing the need for cancellation due to inadequate coverage.
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