Credit Shortfall

What is Credit Shortfall?

Credit Shortfall, also known as ‘Gap Cover’ is a stand-alone insurance policy that covers the difference between your outstanding loan amount and the market value of your vehicle
in the event of a theft or total loss.

Credit shortfall is only available if you have a comprehensive motor insurance policy with us and your vehicle is still under hire-purchase.


By having a Credit Shortfall cover on top of your comprehensive vehicle policy, it will help cushion the blow in the event of anything happening to your car/motorcycle. It will cover the ‘Gap’ between what you’ve paid and what you owe your bank e.g when the outstanding loan amount is greater than the market value of your car/motorcyle.

Additional Benefits

Credit Shortfall also has an added benefit in the form of a “Deposit Cover” whereby you will be compensated for deposit paid for your lost vehicle.

This additional benefit is limited up to 10% of the sum insured of your vehicle
with a maximum of RM10,000 for private car and RM2,500 for motorcycle.

Car Insurance Payout
Vehicle Insurance covered
Your car’s worth covered
Market Value Payout

Scenario 1
Sarah is almost done paying off her car loan when she met with a terrible accident.

Her car is declared a total loss. She had an outstanding loan of RM60,000 at the time. The market value for her current car is RM45,000 – meaning she has a remainder of RM15,000 to pay off.

Luckily, Sarah had taken up the Credit Shortfall cover. It pays off the RM15,000 that she owes the bank thus decreasing her burden altogether!

Scenario 2

You have just received your claim settlement of RM3,000 for your stolen motorcycle. However, you still have an outstanding hire purchase loan of RM4,200.

Credit shortfall will pay RM1,200 on top of the RM3,000 you will receive from your motorcycle insurance.

Scenario 3

Adam was reimbursed RM40,000 for his stolen car and his loan was fully settled because he took the credit shortfall cover.

With the Deposit Cover, Adam will receive additional compensation for the loss of deposit paid.

Gap Payout
Credit Shortfall covered
The rest of it also covered
Added Value Payout