Photo: Michaelphoya, Wikimedia Commons, CC BY-SA 4.0Third party, third party fire and theft or comprehensive?
Motor cover in Malawi
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| Act / third party | Third party, fire and theft | Comprehensive | |
|---|---|---|---|
| Injury or death of other people | Yes (compulsory) | Yes | Yes |
| Damage to other people's property | Yes (compulsory) | Yes | Yes |
| Your vehicle stolen or burnt | No | Yes | Yes |
| Damage to your vehicle in an accident | No | No | Yes |
| Passengers | Only if carried for hire or reward or under a contract of employment (RTA s 144(b)) | As the policy says | As the policy says |
Sub-classes from the Classes of Insurance Business Directive, 2017, First Schedule; the compulsory part from section 143 of the Road Traffic Act. The table describes the categories, not any insurer's policy.
How to choose
- A financed or new vehicle: the lender usually asks for comprehensive cover. Under the Fair Treatment of Consumers Directive 2024, when a loan requires credit insurance you choose the insurer from the lender's list of approved insurers (paragraph 15).
- An older vehicle you could replace yourself: third party, fire and theft keeps the compulsory part and adds theft and fire.
- Ask for the key facts statement: the insurer must give it before you buy, with the premium, the excess, the exclusions and the claim settlement period (Disclosure Directive 2018).
Premiums: insurers price each risk from their own rating model since the 2025 pricing guideline; compare written quotes from at least two licensed insurers.
Already insured?
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Frequently asked questions
What is Act cover in Malawi?
The minimum motor cover that satisfies the Road Traffic Act: liability for death, injury and property damage caused to others on a public road. It is one of the motor sub-classes of the Classes of Insurance Business Directive, 2017.
Does third party insurance pay for my car?
No. Third party cover pays other people. Your own vehicle is covered for fire and theft by a third party, fire and theft policy, and for accident damage only by a comprehensive policy.
Which is cheaper, third party or comprehensive?
Third party cover pays for less, so it usually costs less, but Malawi has no published tariff: each insurer prices from its own rating model. Ask two licensed insurers for written quotes.
Sources
- Insurance (Classes of Insurance Business) Directive, 2017 — Government Notice No. 43, Gazette of 11 August 2017
- Road Traffic Act, Cap. 69:01 (in force 15 January 1998), Part XIV: compulsory third party insurance — MalawiLII consolidated text, Web Archive copy
- Registrar of Financial Institutions — Guideline on pricing of motor insurance products by insurers (February 2025)
- Financial Services (Disclosure Requirements for Insurance Services) Directive, 2018 — Government Notice No. 42, Gazette of 5 July 2018
- Financial Services (Fair Treatment of Consumers) Directive, 2024 — Government Notice No. 45, Gazette of 12 July 2024