Can You Renew Car Insurance and Road Tax After the Owner Passes Away?
Losing a loved one is hard; navigating the JPJ bureaucracy shouldn't be. Many Malaysians believe that as long as the road tax is active, they are legally safe.
Generally, if the premium has already been paid, the policy remains active until its expiry date — it doesn't automatically cancel just because the owner has passed away.
That said, this is only a temporary buffer. You should still get the inheritance process and car ownership transfer moving in the meantime, so there's no gap in coverage once the policy expires, or once the car is ready to change hands to the new owner.
Disclaimer: Policy terms may vary between insurers. Always confirm with your insurer before taking any action.
Can You Renew Road Tax?
Under JPJ's official Motor Vehicle License (LKM) renewal guide, if the registered owner has passed away, road tax (LKM) can only be renewed for six (6) months at a time, up to a maximum of five (5) years from the date of death.
To do this at a JPJ branch, you'll generally need:
The identity document of the next of kin or representative attending in person
A valid PUSPAKOM inspection report, if the vehicle hasn't been in active use
If it's been more than 5 years since the owner passed away, JPJ requires proof that the inheritance process has already started before they can consider approving any further extension.
Disclaimer: This procedure may change or be amended from time to time. Always confirm with JPJ before making your visit.
Can You Transfer NCD?
The No Claim Discount (NCD) is strictly tied to the individual policyholder. According to PIAM's own guidance, it can only move to a new vehicle registered under the same policyholder's name — it cannot be transferred to a different person, including a spouse or a child.
In practice, this means if the car changes hands to a family member, the deceased's accumulated NCD doesn't carry over. The new policyholder starts their own policy using their own NCD entitlement (if any), not the deceased's.
How Drive+ Simplifies the Transition
PolicyStreet's Drive+ Membership is designed to be your reliable partner during these administrative and financial hurdles. Our membership programme can help ease the burden on your pocket by providing member-exclusive perks. Depending on your membership tier, you may enjoy:
Up to RM360 worth of vouchers and discounts, including up to RM120 off road tax renewal
Prioritised assistance for car insurance renewal
Step-by-step guidance for insurance claim submissions
PolicyStreet makes it easy to renew your car insurance and/or road tax online. Get your free quotation, compare between multiple insurers, select your preferred plan, and give your car the protection it needs.
Frequently Asked Questions:
1. Is car insurance the same as road tax in Malaysia?
No, they are different. Car insurance covers your liability and damages, while road tax is a mandatory government fee to use the roads. You cannot renew road tax without valid insurance coverage for the period applied for.
2. Can I drive a car if the owner has passed away?
Yes, if the insurance policy is still active (already paid for and not yet expired), the vehicle remains covered under it. It's still a good idea to inform the insurer of the owner's passing, since a new policy will eventually need to be arranged in the new owner's name.
3. What happens to the NCD after the owner dies?
The NCD stays with the deceased as the original policyholder. It cannot be transferred to another person, even a spouse or child. Whoever takes over the vehicle starts their own policy with their own NCD entitlement, if any.
4. Can I renew the road tax online for a deceased person?
No. For a deceased owner, road tax renewal is done at a JPJ branch (or authorised JPJ counter), not online, and only for 6 months at a time, up to a maximum of 5 years from the date of death. After 5 years, further renewal needs JPJ approval and proof that the inheritance process has started.
