Lower Sum Insured – too low

There is lots of jargon out there explaining this in terms and such.
Today, we at HOI want everybody to understand this matter in a very simple term.

When your sum insured is too low involve in an accident where damage cost higher than the amount insured.
Most cases, the Insurance or Takaful operator will likely declare your vehicle a total loss

What happens when a claim made for a total loss?

Like damage repair during other normal claims.
The damage/replaced part which paid then, will be own by the company Insurance or Takaful company
Since they pay for it, they will have the rights to re-sell the part as the new owner.

That is for parts

What if an Insurance/Takaful company pays for a total claim of loss?

Your vehicle is no longer owned by you
There will be the same status recorded in JPJ system

This means if you manage somehow to rebuild the car.
You will not be able to renew your Insurance/Takaful nor Road Tax

To understand why we share this information
Read more: https://www.hoi.my/cms/5-reasons-buy-insurance-takaful-online-direct-hoi/