On-Board Personnel Liability Insurance

On-Board Personnel Liability Insurance, commonly referred to as "Seat Insurance", is a primary policy under commercial motor insurance and the only coverage specifically designed to protect against bodily injury and death of the driver and passengers in the insured vehicle. Its core function is for the insurer to compensate for casualties among occupants when an accident occurs and the insured vehicle is at fault.

What Does It Cover? — Core Terms and Scope of Compensation

1. Insured Persons
This policy covers the driver and passengers occupying the approved seating capacity of the insured vehicle, functioning as an unnamed policy that "attaches to the vehicle rather than specific individuals". In other words, anyone travelling in your vehicle is covered, provided they have permission to be on board.

2. Scope of Compensation
It primarily covers bodily injury and death resulting from an accident, specifically including: medical expenses, loss of income, nursing care expenses, disability compensation, and death benefits. The maximum payout per passenger is determined by the agreed "limit of liability per seat" established when purchasing the policy.

How to Make a Claim? — Key Prerequisites and Exclusions

1. Claim Prerequisite: The Insured Vehicle Must Be at Fault
Seat insurance is a form of liability insurance with an absolute prerequisite: the driver of the insured vehicle must bear liability in the accident (sole fault, primary fault, equal fault, or partial fault). The compensation payout varies according to the proportion of liability (100% payout if fully at fault, and zero payout if not at fault).

2. Typical Exclusions

• No coverage outside the vehicle: Individuals injured while outside the car (such as during roadside repairs or being struck after alighting) are not covered. However, injuries sustained from being thrown out of the vehicle during an accident are claimable.

• No coverage for intentional acts and unlawful conduct: Injuries resulting from intentional acts by the driver, unauthorised passenger carriage, self-inflicted harm, or criminal offences will not be compensated.

• No coverage for non-traffic accident incidents: Passenger collision injuries solely caused by hard braking without an actual road traffic accident are generally excluded from claims.

Buying Guide — Sum Insured and Key Considerations

• Coverage Options: Policies must be purchased based on the vehicle's seating capacity. You may opt to cover the "driver's seat only" or "all seats in the vehicle" (for instance, a 5-seater must be insured for 5 occupants); you cannot arbitrarily choose to insure only 2 or 3 seats. It is generally recommended to insure according to the full approved seating capacity.

• Recommended Sum Insured: For private passenger cars, the sum insured per seat typically ranges between RM10,000 and RM50,000. A commonly recommended configuration is: RM50,000 for the driver's seat and RM20,000 per passenger seat. Premiums are relatively affordable and are not tied to the vehicle's market value.

• Difference from Personal Accident (PA) Insurance: Seat insurance is a "liability policy" that only pays out when the insured vehicle is at fault; in contrast, Driver & Passenger Personal Accident Insurance is pure "personal accident coverage" that pays out regardless of who caused the accident. The protection principles of the two are distinctly different.