But what does license cost have anything to do with the insurance cost? Moto should at least get a 3rd party insurance, failing of which they can be held personally liable if they bang other motorists. If a moto bank a Mecelis E keras 300, the damage is quoted at RM8k (the tail lights, bumbper, etc), can the motocyclist afford this out of pocket?

Not fair at all.

Erm, in AMERIKA(!) the Mercelis E Keras 300 would claim from his own insurance, but the insurance company would in turn claim from the motocyclist's insurance or make him personally liable for it.

This makes sense isn't it? Why would my insurance have to pay for a motosikalist's mistakes?