Road accidents: what to do, insurance and compensation

Key points

Every driver involved must stop, give particulars if asked, and report the accident at the nearest police station within 24 hours (Road Transport Act 1987 s 52).
Using a vehicle without third-party insurance is an offence: fine up to RM1,000 or up to 3 months’ jail or both, and normally a 12-month driving disqualification (s 90).
Once a certificate of insurance has been issued, the insurer must pay a victim’s judgment for death or bodily injury even if it could cancel the policy — provided it had notice of the court case within 7 days of it starting (s 96).
Policy exclusions such as an unlicensed or drunk driver have no effect against third-party injury claims (s 95).
A claim for a death must be brought within 3 years of the death (Civil Law Act 1956 s 7(5)); other negligence claims normally within 6 years (Limitation Act 1953 s 6).

At the scene and at the police station

Stop. If an accident happens owing to the presence of a motor vehicle on a road, the driver must stop and, if anyone with reasonable grounds asks, give his name and address, the owner’s name and address and the registration number (Road Transport Act 1987 s 52(1)).
Help. Give the assistance a police officer reasonably requires or, if none is present, the assistance reasonably in your power (s 52(3)).
Report within 24 hours. Each driver involved must report the accident at the nearest police station as soon as reasonably practicable and in any case within 24 hours, and produce his driving licence and, if required, the certificate of insurance (s 52(2)).
Documents not with you? You are not convicted only for failing to produce them if, within five days, you produce them in person at the police station you named when reporting (s 52(5)).
Tell your insurer. The insured must notify the insurer as soon as possible of any event that may give rise to a claim (s 104).

Failing to comply with s 52 is an offence (s 52(5)).

Compulsory third-party insurance

It is unlawful to use, or cause or permit anyone to use, a motor vehicle without a policy (or security) against third-party risks complying with Part IV (s 90(1)). Penalty: fine up to RM1,000 or up to 3 months’ jail or both, and disqualification from driving for 12 months unless the court for special reasons orders otherwise (s 90(2)).
The policy must be issued by an authorised insurer and cover liability for the death of or bodily injury to any person caused by or arising out of the use of the vehicle on a road (s 91(1)). It need not cover the insured’s own employees injured in the course of employment, contractual liability, or — except for vehicles carrying passengers for hire or reward or under a contract of employment — passengers (s 91(1), proviso).
A driver must produce the certificate of insurance when a police officer, traffic warden or road transport officer asks; producing it at a named police station within five days avoids conviction for not having it on you (s 58(1)).

When the other driver’s insurer must pay you

If you obtain a judgment against an insured driver for death or bodily injury covered by the policy, the insurer must pay it — including costs and interest — even if it is entitled to avoid or cancel the policy, or has done so (s 96(1)).
But the insurer need not pay unless it had notice of the court proceedings before or within seven days after they began; nor while execution is stayed pending appeal; nor in certain cases where the policy was cancelled and the certificate surrendered before the accident (s 96(2)).
Restrictions in the policy based on matters such as the driver’s age or condition, the vehicle’s condition, the driver being under the influence of drink or drugs, or not holding a licence, have no effect against the liabilities the Act requires to be covered; the insurer can recover what it pays from its own insured (s 95).
If the insured driver becomes bankrupt, his rights against the insurer pass to the injured third party (s 97(1)).
Where the insurer pays for death or bodily injury and the victim was treated at a hospital, the insurer must also pay the hospital’s reasonable expenses, capped at RM400 per in-patient and RM40 per out-patient (s 91(2)).

Claiming for injuries

In assessing damages for personal injury not resulting in death, the court does not deduct insurance money, pensions or gratuities, or benefits paid under any written law (Civil Law Act 1956 s 28A(1)).
No damages are recoverable for loss of expectation of life itself, but awareness of a shortened life is taken into account in pain and suffering (s 28A(2)(a)–(b)).
Loss of future earnings is awarded only if you were earning by your own labour or other gainful activity before the injury, is based on earnings at the time of injury less living expenses, and is not awarded if you were 60 or older when injured (s 28A(2)(c)). The multiplier is 16 years’ purchase if you were 30 or younger (s 28A(2)(d)).
The court may add interest on damages for the period from when the cause of action arose to judgment (s 11(1)).

When someone is killed

If a death is caused by a wrongful act, neglect or default, the person who would have been liable to the injured person is liable to an action for damages (s 7(1)).
The action is for the benefit of the wife, husband, parent, child and any person with disabilities under the deceased’s care, and is brought by the executor (s 7(2)); if there is no executor, or he has not sued within six months of the death, any of those dependants may bring it (s 7(8)).
Damages compensate for loss of support and reasonable expenses; funeral expenses can be awarded; insurance, EPF, pensions and statutory benefits paid because of the death are not deducted (s 7(3)).
Bereavement: RM30,000, for the spouse, children and parents, divided equally (s 7(3A)–(3C)).
Only one action may be brought, and it must be brought within three years after the death (s 7(5)).

Time limits

Actions founded on tort (such as negligent driving) or contract: six years from when the cause of action accrued (Limitation Act 1953 s 6(1)(a)).
Dependency (death) claims under the Civil Law Act: three years after the death (Civil Law Act s 7(5)).
If the person entitled to sue was under a disability (for example a child) when the right accrued, the action may be brought within six years from when the disability ended or the person died, whichever came first (Limitation Act s 24(1)).

Accidents on the way to work (SOCSO)

For an insured person under the Employees’ Social Security Act 1969, an accident is deemed to arise out of and in the course of employment if it happens while travelling between home (or place of stay) and work, on a journey directly connected with the job, or between work and the place of a meal during an authorised break (s 24(1)).
This does not apply if the accident happens during an interruption of, or deviation from, such a journey (s 24(2)).

Traffic offences after an accident

Driving without due care and attention or without reasonable consideration for other road users is an offence: fine of RM5,000–RM10,000 and up to 12 months’ jail on a first conviction; RM10,000–RM15,000 and up to 12 months on a second; endorsement of the licence; a probationary licence is revoked (s 43).
Certain offences prescribed by rules may be compounded — settled by paying a sum not exceeding RM300 to an authorised officer, with the Public Prosecutor’s written consent (s 120(1)).

Laws cited on this page

Act 67	Civil Law Act 1956 Akta Undang-Undang Sivil 1956 Our guide →	PDF · Official ↗
Act 254	Limitation Act 1953 Akta Had Masa 1953 Our guide →	PDF · PDF (BM) · Official ↗
Act 333	Road Transport Act 1987 Akta Pengangkutan Jalan 1987 Our guide →	PDF · PDF (BM) · Official ↗

Each law links to our mirror page: a copy of the official text captured on a known date, its version history, and the official source. Law library →

Worked examples

Example 1: The uninsured restriction

Facts. Farid, 19, borrows his uncle’s insured car although the policy says only drivers over 21 are covered. He hits Lee, a pedestrian, who is badly injured. Lee sues Farid and tells the insurer within a week of filing.

The law. A policy restriction by reference to the age of the driver has no effect against liability for bodily injury (Road Transport Act s 95); the insurer must satisfy the judgment if it had notice within 7 days of the proceedings starting (s 96(1)–(2)).

Outcome. The insurer pays Lee’s judgment, costs and interest, and may then recover the amount from the insured (s 95, proviso).

Example 2: A fatal accident

Facts. Siti’s husband is killed by a lorry driver who ran a red light. She is the executor. Their two children are 8 and 12.

The law. The lorry driver (and through s 96, his insurer) is liable for loss of support, reasonable expenses and funeral expenses (Civil Law Act s 7(1)–(3)); bereavement damages are RM30,000, shared equally by the spouse, children and parents (s 7(3A)–(3C)).

Outcome. Siti must bring the action within three years of the death (s 7(5)); any insurance or EPF money paid on the death is not deducted (s 7(3)).

Examples are simplified illustrations with invented names; real cases turn on their own facts.

Questions & answers

Must I report even a minor accident?

Yes. Each driver of a motor vehicle involved must report the accident at the nearest police station as soon as reasonably practicable and in any case within 24 hours (Road Transport Act 1987 s 52(2)).

The driver who hit me had no licence. Does his insurer still pay?

For death or bodily injury, yes: policy restrictions based on the driver not holding a licence have no effect against those liabilities (s 95), and the insurer must satisfy the judgment (s 96(1)), provided it had notice of the proceedings within 7 days of their start (s 96(2)(a)). It can then recover the money from its own insured (s 95, proviso).

Who can claim if a family member dies in a crash?

The executor, for the benefit of the spouse, parents, children and any person with disabilities under the deceased’s care; if no executor sues within six months, the dependants can (Civil Law Act 1956 s 7(2), (8)). The action must be brought within three years of the death (s 7(5)).

Will my own insurance payout reduce the damages I get?

No. Sums paid under a contract of insurance are not taken into account in assessing personal-injury damages (Civil Law Act s 28A(1)(a)), or dependency damages after a death (s 7(3)).

How long do I have to sue for my injuries?

Six years from the accident for a claim in tort (Limitation Act 1953 s 6(1)(a)). For a child, the six years run from when the disability ends (s 24(1)).

I was injured riding to work. Is it covered by SOCSO?

If you are an insured person, an accident while travelling between home and work is deemed to arise out of your employment (Employees’ Social Security Act 1969 s 24(1)(a)) — unless it happened during an interruption of or deviation from that journey (s 24(2)).

All questions & answers → · Ask your own →

This page explains the general position in Malaysia (last reviewed October 2026). It is not legal advice — check the current law and get advice on your own facts.

Sources

Road Transport Act 1987 Civil Law Act 1956 Limitation Act 1953 Employees' Social Security Act 1969 Public Authorities Protection Act 1948 Getting legal help