mine under maybank they did offer but said not compulsary..better you check again or ask other bank for loan...

loooooooooooong ago (Sept 2015 in exact), applied HP with PBB for 2nd hand myvi 35k only.. but compulsory to buy the hire purchase decreasing term assurance RM200++ one off, for me okay lah, why not. cuz if anything happen to me, at least people who leave behind wont suffer...

recently with HLB, not compulsory but i requested, so...

assuming u loan 100k and if this is a one off, which is around RM132 for peace of mind, i would lah 

dangggg if it's per year then too much already x.x! and yes, mrta/mlta to mortgage makes much more sense...

so, you have to buy insurance to cover the bank's potential loss if the borrower dies; whilst the car legally still belongs to the bank = the bank take no risk at all and borrower pays all costs

HP Life, offered by the bank, is an insurance plan to pay off the remaining loan in event of the owner's death or Permanent disability. The ownership of the car will then be passed on to the next of kin /beneficiary named in the policy.

Yes, on one hand, it protects the bank's interest, but on the other, it also helps the next of kin, who needs the car as a mode of transport. Would strongly advice to take it, if the car is a family car, often shared by the spouse and/or the spouse stands as a guarantor for the loan.

Because in event of the owners' death/permanent disability, the guarantor is liable to settle the loan anyway and such a protection would be a welcome relief.

or you can let the bank repossess the car; why pay to cover the banks potential losses since car value depreciates unlike a property

do all HP loans require guarantors?

Yes, you are right, the bank can always repossess the car. However, if any family member eg spouse had stood as a guarantor, the bank would first demand that the guarantor continues to service the loan. If the guarantor fails to do so, the car would be auctioned off, and if there is any shortfall in the auction price and balance loan settlement, the guarantor would be responsible for it. The last thing for someone who had lost their love one ever wanted, is to also bear the consequences of the deceased liabilities, house, cars etc... Not taking responsibility of it could also affect the credit worthiness of the guarantor, because after all, life has to go on....

its not right cos the bank owns the car until 100% paid up; if borrower defaults, for whatever reason, the bank can repossess the car and sell off to recoup the money

same like those mrta etc.,

To each, his own then, depending on your situation i.e single or married / loan with guarantor or without/ young or old/sharing car or not. I have personally had a customer who, after her husband had passed on, contacted me to check if they have bought any HP auto life, or she would loose the car she needs to the bank.