A knock-for-knock, own-damage claim is a type of insurance claim that comprehensive policyholders can submit if they are met with an accident. It is submitted to their insurer, given that the policyholder is not at fault. By doing so, the insurer seeks compensation directly from the third party’s insurance company for damages.
This type of claim offers several benefits to the victim compared to a typical third-party claim. However, knock-for-knock can sometimes be confusing, swirling with questions and doubts. Let us share our input to address some of the frequently asked questions in this article.
Why are knock-for-knock insurance claims made?
It is submitted to ensure the claim is processed and approved quickly and the vehicle can be repaired faster after an accident. If a claim is made through a third-party policy, it usually takes much longer, delaying the vehicle repair process.
Are all vehicle owners eligible for this claim?
Nope. You can only submit this claim if you have comprehensive car insurance. If you do not have a comprehensive policy and want to make an insurance claim after being hit by another vehicle, third-party insurance can be considered. This claim is made directly under the policy of the individual guilty of the accident.
What are the advantages of this insurance claim?
The two main advantages of making a knock-for-knock claim are:
- Faster claim approval and car repair than a third-party claim
- Claim excess and Compensation for Assessed Repair Time (CART) from the insurance company of the other party
What documents are required for this claim?
- A claim form that has been filled out
- A certified copy of the original police report
- A copy of the identity card & driver’s licence of the insured person and the driver
- Vehicle ownership certificate
- Police investigation report
- Details of the insurer and a copy of the other party’s police report
- Details of the estimated cost of repairing the vehicle
What are the conditions for making this claim?
In addition to making sure that you are not guilty of the accident, several other conditions need to be met to successfully apply for this claim:
- You are a comprehensive policyholder
- Third-party vehicles are insured by a local insurer and have been identified
- Third-party vehicles are not commercial vehicles, such as taxis, vans and buses
- The claim does not involve bodily injuries
Will my No-Claim Discount be affected?
Nope. Your No-Claim Discount (NCD) will not be affected even if this claim is made under your policy. If you’re proven not guilty of the accident, a knock-for-knock claim can be made for an easier and faster insurance claim.
Difference between knock-for-knock and own damage claim
A knock-for-knock claim can only be made if the mishap is not caused by your negligence. You and your insurance company will not suffer any loss, as your insurer will claim damages directly from a third-party insurance provider.
On the other hand, an own damage claim is made by a comprehensive policyholder under their own policy for self-inflicted damages. In other words, you seek compensation for an accident caused by your negligence. Through this claim, the policyholder will lose the NCD collected over the years, affecting the insurance premium for the following renewal.
Understanding knock-for-knock claim
A knock-for-knock claim is still a confusing topic among many vehicle owners, as they tend to worry about losing their NCD even if they’re not guilty of the accident.
We hope some of your concerns regarding this topic have been addressed to enable you to make informed decisions in the future. Remember to share this useful information with a friend or family member who may be in need of help.
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