Key points
- Employers are vicariously liable for drivers acting in the course of employment.
- Using or permitting use of an uninsured vehicle is unlawful (RTA s.90).
- Insurers must generally satisfy judgments for bodily injury (s.96(1)).
- The insurer must have notice of proceedings within the required time (s.96(2)(a)).
- Identify the owner, employer, hirer and insurer correctly.
You were hit by a delivery van, a lorry carrying goods, or a car with a company logo. The driver may be an employee with limited means. Suing the company as well makes sense, both to ensure the claim is paid and because the company may carry its own responsibility. This guide explains when the company can be liable.
Vicarious liability
Under the common law, an employer is vicariously liable for the negligence of an employee committed in the course of employment. The employer need not have been at fault itself. Applied to road accidents:
- a lorry driver making deliveries is acting in the course of employment;
- a sales representative driving a company car to meet a client usually is;
- a driver using the company van for a personal errand or a weekend trip, against instructions, may be on a "frolic of his own", and the employer may argue it is not liable.
The question is fact-specific. Delivery records, trip logs, GPS data and the driver's working hours often decide it.
The owner and compulsory insurance
Section 90(1) of the Road Transport Act 1987 makes it unlawful for any person to use, or to cause or permit any other person to use, a motor vehicle unless there is a policy of insurance or security against third-party risks that complies with the Act. A company that lets its vehicle be driven without valid insurance commits an offence, and the failure can support a civil claim.
The insurer must pay judgments
Under section 96(1), if judgment is given against any person insured by the policy for a liability required to be covered under section 91(1)(b), including bodily injury, the insurer must pay the judgment sum, costs and interest, even if it was entitled to avoid or cancel the policy. But under section 96(2)(a), no sum is payable unless the insurer had notice of the proceedings before or within seven days after they began. Your lawyer should serve that notice promptly.
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Identifying the right company
Vehicle registration, the logo on the vehicle and the company that employs the driver may be different entities, especially with leasing and logistics arrangements. Check:
- the registered owner (through the police report and JPJ records);
- the employer of the driver;
- any hirer or lessee of the vehicle;
- the insurer named in the police report.
Suing the wrong entity wastes time and may lead to costs.
What should I do first?
- Lodge a police report and note the vehicle number, company name and logo.
- Photograph the vehicle, including any signage.
- Get the driver's details and, if possible, their employer's name.
- Ask your lawyer to obtain the owner and insurer details and send notice.
- Get medical treatment and keep all records.
Example
A motorcyclist is hit by a van making deliveries for a logistics company. The van is registered to a leasing company. His lawyer sues the driver and the logistics company as employer, names the leasing company as owner, and serves notice on the insurer within the time required by section 96(2)(a). The insurer later satisfies the judgment.
Common mistakes
- Suing only the driver, who may have no assets.
- Not serving the insurer with notice of the proceedings.
- Assuming the logo identifies the legal owner.
- Ignoring evidence about whether the driver was working at the time.
When to speak to a lawyer
Speak to a lawyer if a company vehicle injured you, particularly where the owner, employer and insurer are different companies. See our civil litigation page; you can also contact us.
Frequently asked questions
The company says the driver was a contractor, not an employee. Does that matter?
It can. Vicarious liability usually depends on the relationship, though other routes may apply. Take advice on the facts.
What if the driver took the van without permission?
The company may argue it is not liable, but insurance and other issues still need checking.
How long do I have to sue?
Personal injury claims are generally subject to six years under section 6(1)(a) of the Limitation Act 1953.
Sources & fact check
Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.
- Road Transport Act 1987 (Act 333), as amended by Act A1618 (2020), AGC Laws of Malaysia
- Civil Law Act 1956 (Act 67), including sections 7, 8, 12 and 28A, AGC Laws of Malaysia
- Limitation Act 1953 (Act 254), including section 6, AGC Laws of Malaysia
- Royal Malaysia Police (PDRM): how to make a police report, including road accident reports under section 52 of the Road Transport Act 1987
Fact-checked on 18 Oct 2026
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