What to Do If You're Hit by an Unlicensed Driver in Malaysia
Summary: If an unlicensed driver hits your car in Malaysia, your claim process doesn’t collapse. If you weren’t at fault, you can usually claim via the at-fault driver’s insurer or your own comprehensive policy without losing your NCD. Meanwhile, the unlicensed driver’s own claim likely won’t get paid out.
Picture this: you’re driving home from work, minding your own business, when another car rear-ends you at a traffic light. You exchange details, lodge a police report, then weeks later, you find out the other driver didn’t even have a valid driving licence.
Sounds rare? It’s not. JPJ and police enforcement operations catch tens of thousands of unlicensed drivers every year in Malaysia. It happens often enough that every car owner should know exactly where they stand if it happens to them.
So here’s the real question: does an unlicensed driver hitting you change how your car insurance claim works? And if you’re the unlicensed one, what happens to you? This guide breaks down what the law says, how a third party insurance claim actually plays out, and what to do on the spot to protect your payout and NCD.
This article is for general educational purposes only and isn’t legal or car insurance advice. Always check your own Certificate of Insurance/Takaful and confirm your specific situation with your insurer before making any decisions.
What Counts as Driving Without a Valid Licence
Under Section 26(1) of the Road Transport Act 1967, you need a valid driving licence to legally drive on Malaysian roads. “No valid licence” covers a few different situations, such as:
Never held a driving licence at all
Licence has expired and wasn’t renewed
Licence was suspended or revoked by a court
Driving the wrong vehicle class (e.g. using a motorcycle licence to drive a car)
Underage or unlicensed minors behind the wheel
Under the 2026 amendment, the new minimum court fine for driving without a valid licence under Section 26(1) has risen from RM300 to RM500. On top of the driver’s own penalty, Section 64(1) of the same Act lets authorities seize a vehicle and take action against the owner for knowingly letting an unlicensed person drive it.
Penalties for Unlicensed Drivers
This means if you get caught driving without a licence for the first time today, you may get:
A minimum fine of RM500 (raised from RM300),
A maximum fine of RM2,000,
Imprisonment of up to 3 months, or both.
Penalties for Disqualified Drivers
However, if you’ve been disqualified from driving (licence suspended or revoked), you’ll face stricter penalties:
A fine from RM3,000 to RM10,000 (previously capped at RM5,000),
Imprisonment of up to 3 years in prison (increased from 1 year), or both.
This is worth knowing before handing your keys to someone, as covered in the Named Driver versus Unnamed Driver guide.
Immediate Steps After the Accident
If you’re not at fault
If you got hit and it turns out the order driver had no valid licence, here’s the good news: according to the General Insurance Industry Association (PIAM), not having a valid licence doesn’t automatically block you from making claims.
If you weren’t at fault, you can typically still make a third party insurance claim against the at-fault driver’s insurer, or an Own Damage claim under your own comprehensive policy — in both cases, your No-Claim Discount (NCD) stays intact.
Structurally, this isn’t too different from What to Do If You’re Hit by an Uninsured Driver in Malaysia: the other driver’s licence status isn’t supposed to penalise you as the innocent party.
If you’re at fault and unlicensed
Now flip the scenario — you’re the one without a valid licence, and you caused the accident. In this case, your own claim likely won’t pay out, since most policies require the driver to hold a valid licence at the time of the incident.
That doesn’t leave third parties uncompensated though. Usually, they can still claim against your policy for their losses, since third party coverage exists to protect other road users.
Protecting Your NCD and Payout
A not-at-fault claim — whether through the other driver’s insurer or your own comprehensive Own Damage cover — typically protects your NCD, since the claim isn’t being made against your own driving record.
To strengthen your claim and avoid disputes down the line, make sure you:
Lodge a police report within 24 hours of the accident.
Take photos of the accident scene, vehicle damage, and if possible, the other driver’s documents.
Get contact details and statements from any witnesses.
Check the other driver’s licence on the spot if you safely can, and note anything unusual.
These steps matter regardless of whether the other driver turns out to be licensed or not. They’re just good practice for any car accident police report situation in Malaysia.
Stay Protected with Valid Car Insurance
Situations like this are a good reminder that your own coverage is your strongest protection on the road. You can’t control who else is driving out there, but you can make sure your own policy is active and up to date.
If you ever need to lodge a claim, PolicyStreet’s Drive+ membership also gives you step-by-step guidance through the claims process and priority support for renewals, on top of road tax and lifestyle vouchers, which are worth considering when you renew. Drive+ membership fees, tiers, and benefits are subject to Terms and Conditions.
Compare and renew your car insurance with PolicyStreet to make sure you’re covered when it matters.
Frequently Asked Questions
1. Can I still make a claim if the other driver had no licence?
Usually yes if you weren’t at fault. You can claim from the at-fault driver’s insurer or your own comprehensive policy.
2. What if I was the one driving without a licence?
Your own claim likely won’t pay out, but third parties can still claim against your policy for their losses.
3. What is the penalty for driving without a valid licence in Malaysia?
Under Section 26(1) of the Road Transport Act 1987, you can get a minimum fine of RM500 to RM2,000, or 3-month imprisonment, or both.
4. Will I lose my NCD if I make a claim because of an unlicensed driver hitting my car?
No if you weren’t at fault, and you claim via a third-party claim or Own Damage Knock-for-Knock against your own comprehensive policy.
5. How do I prove the other driver had no valid licence?
A police report at the scene is the main way to document this — the police can verify the other driver’s licence status directly.
6. Can a car owner get in trouble for letting someone unlicensed drive their car?
Yes. Under Section 64(1) of the Road Transport Act 1987, the vehicle can be seized and the owner may face legal action.
7. What should I do right away if I suspect the other driver has no licence?
Call the police to the accident location first, then inform your insurer as soon as possible.
