KBS Backs Motorsport - But Insurance Coverage Gap For Trackdays Not Tackled!

A BMW M3 was completely destroyed after catching fire during a recent trackday session at the Petronas Sepang International Circuit (SIC). The incident took place around 12.30PM at Turn 4 during an event organised by Singapore-based automotive parts company Godspeed AutoTechnik.

Initial information from the Selangor Fire and Rescue Department (JBPM) suggested a possible fuel tank leak as the cause, but the organiser later clarified that a ruptured turbocharger oil-feed line was to blame. Engine oil had leaked onto the turbocharger, sparking a fire that engulfed the car.

Eleven firefighters from the KLIA Fire and Rescue Station were dispatched after receiving an emergency call at 12.38PM. According to JBPM Selangor Assistant Director of Operations Ahmad Mukhlis Mukhtar, the car was a total loss, although the fire was confined to the track and did not spread.

Godspeed AutoTechnik confirmed in a social post that the driver was unharmed and apologised for the disruption caused to participants and officials. The company also stated it is working with the vehicle owner to manage the situation and take steps to prevent similar incidents in the future.

Beyond the mechanical failure, the incident has once again drawn attention to a longstanding gap in vehicle insurance coverage in Malaysia. Standard motor insurance policies exclude any form of coverage when a vehicle is used on a racetrack, whether in racing, speed tests, time trials, or even non-competitive track day sessions.

This means that owners are left completely exposed in the event of damage or loss, even if the activity was part of a structured and safety-managed event.

It’s an uncomfortable unverified truth that some owners in the past have tried to circumvent by claiming that accidents occurred on public roads. Vehicles are sometimes removed from the track before filing police reports.

But in high-profile cases like this, where the fire was witnessed by many and widely shared on social media, such tactics are neither feasible nor credible.

In this instance, the owner will likely have to absorb the full cost of the loss, including any outstanding loan repayments and possible charges imposed by the circuit for cleanup or damages.

It is also unclear whether the event organiser carried motorsport-specific insurance that could offer some form of compensation.

Now this raises a pressing question. With motorsport being one of the sports actively promoted by the Ministry of Youth and Sports (KBS), why hasn’t there been a serious discussion with insurers about introducing a specialised add-on for motorsport use? 

Just like e-hailing and special perils coverage where both are now common opt-in policy features a motorsport add-on could be designed to cover track use under defined, non-competitive conditions.

Realistically, the risk profile may not be much higher than special perils. No car owner who has invested thousands in preparing his/her vehicle will head to a racetrack intending to wreck it.

Track enthusiasts are typically cautious and deliberate, not reckless. An add-on like this would likely see uptake among those genuinely involved in the sport, making it a potentially profitable niche for insurers and a much-needed safety net for users.

Such a move would also discourage dishonest claims, promote transparency, and support the wider motorsport ecosystem.

If Malaysia aims to grow its grassroots motorsport culture and make it safer and more accessible, then insurance reform isn’t just a logical next step — it’s long overdue.