Who are 1st Party, 3rd party & comprehensive when we talk about insurance/takaful cover?

 Although it makes sense there is no 2nd party cover.

  • 1st party refer to the driver/owner.
  • 2nd party always refers to the risk taker (Insurance / Takaful company)
  • 3rd party is referring to the other person(s) involved
  • A comprehensive cover is a cover which covers all three parties above

Example: Ali (1st party) drove a car with a valid ABC Berhad(2nd party)  insurance cover. Hit Ahmad(3rd party) a motorcycle rider.

  • Ali paid for 3rd party cover type which will only cover Ahmad’s claim due to the incident.
  • Ali’s car will be covered if only Ali subscribed to Comprehensive cover.

We respect each customer’s opinion on which cover deem fit.


Good news for all customers.

In the focus on a fully automated and fast process, we recently updated our backend system (FARA) to automatically identify the previous cover of customer vehicle cover and assign it accordingly.

Here are some examples:


MOTOR THIRD PARTY – Covers else than the policyholder


MOTOR THIRD PARTY FIRE AND THEFT – Similar to MOTOR THIRD PARTY, this cover includes for there be any incident of loss(stolen) or if your vehicle caught fire.

* 3 examples taken from actual different model of cars and motorcycle with age differs. 


MOTOR COMPREHENSIVE – The best cover of all. This cover type enables other additional features/options such as

  • Special Perils – Incident in act of god eg: flood
  • Windshield cover – This cover will let you claim windshield damage without impacting your NCD

and much more

Try FARA and experience how fast we populate the data for a quotation.