Legal liabilities to Passengers, commonly refers to as LLNP or LLTP. It is an extra coverage that you can take up with extra premium, whereby it covers you against legal liabilities sought by your passengers against you in an event of an accident due to your negligent.
Your comprehensive policy, under section B, expressly exclude legal liabilities to your passengers, meaning that if your passengers were to sue you for negligence, your car insurance policy will not protect you, and you will have to defend it yourself at your own cost.
While, LLNP is not compulsory in Malaysia, it is compulsory in Singapore. So, if you intend to drive your car into Singapore, you must include LLNP in your motor car insurance. If you did not, you can contact your agent to purchase it mid-way and they will pass endorsement for it to take effective.
When you take your friends or colleagues a ride in your car, you have a legal liability to keep them safe, from the time their aboard your vehicle till they safely alight. In an event of an accident, and unfortunately, your passengers was hurt, you face the risk of being sued by your friends, although you did not benefit from taking them in your car.
Thus, to protect you from the legal liabilities to your passengers, you can opt for this additional coverage.
Legal Liabilities to Passengers cost 25% of the premium of a Third Party insurance. Do not get confused with Legal Liability of Passengers (LLOP). LLOP is to protect you against third party claim against you for the action of your passengers, example; opening door without looking and caused damage to other motorist. LLOP is very affordable at RM7.50 per annum.