According to the General Insurance Association of Malaysia or Persatuan Insurans Am Malaysia (PIAM), insurers paid out RM2.4 billion for motor claims for the first half of 2020. For the first half of 2019, the net motor claims stood at RM2.7 billion, which was a continuous increase since the first half of 2015.
The figures above show how insurance coverage has helped policyholders cover the damages and losses following motor accidents.
As road users, you should continue to be responsible drivers to avoid motor accidents and therefore keep road users safe. However, as accidents can still happen even to the safest drivers, you should be aware of insurance claims if you need to make an insurance claim. Therefore, in this article, we will look into the different types of car insurance claims and car insurance claims processes in Malaysia.
Types of car insurance claims
There are three types of car insurance claims: (1) Own Damage claim, (2) Own Damage Knock-for-Knock claim, and (3) Third Party claim. Read on for the explanation of each type of car insurance claim.
Own Damage claim
This is when you make a damage claim against your insurance policy. Note that you can only make an own damage claim if you own comprehensive insurance.
Example: While driving, you accidentally hit a tree that damages the front bumper of your car. You can make an own damage claim to either repair or replace the bumper.
Note that while your insurance will cover the repair or replacement cost, you will lose your No Claims Discount (NCD) when you make an own damage claim.
However, you will not lose your NCD after making an own damage claim in these two situations:
1. No-Fault Damage
This is where you run into a vehicle accident or damage caused by a third party. It must be certified by the authorities (police) that the accident is not due to your negligence.
2. You have windscreen coverage
If you own windscreen coverage (an optional coverage), you will not lose your NCD after making an insurance claim for your windscreen’s repair or replacement.
Own Damage Knock-for-Knock claim
If an accident is caused by a third party, you can make an Own Damage Knock-for-Knock claim on your own comprehensive insurance, without affecting your NCD.
Example: A car hits the rear part of your car causing it to dent. As you own comprehensive insurance, you can make an Own Damage Knock-for-Knock claim given that the accident is caused by a third party.
If you make an Own Damage Knock-for-Knock claim, you can:
- Keep your NCD as you are not at fault
- Claim excess and loss of use from the third party’s insurance for causing the accident
- Get your car repaired faster
Note that you can only make an Own Damage Knock-for-Knock claim if you own comprehensive insurance.
Third Party claim
If you do not own comprehensive insurance, you can make a Third Party claim if an accident is caused by a third party. As you are not the party at fault, you can keep your NCD even after you make this claim.
Example: A car knocks on the rear part of your car and damages the rear bumper. As you own third party insurance, you make a Third Party claim against the third party’s insurance for causing the accident.
In order to make a Third Party claim, you can submit your claim directly to the third party’s insurance company. For a third party claim, you are eligible to claim for the following:
- Compensation for Assessed Repair Time (CART), based on insurance adjuster’s recommendation on the number of days required for your car to be repaired. Note that insurance companies may allow an additional seven working days for any unforeseen or unavoidable delay
- Compensation of excess
- Cost of car rental for the number of days of the proposed repair
For your information, a standard scale of daily CART specified by PIAM is as follows:
Car insurance claims process
If your car is involved in an accident, follow this car insurance claims process:
- Remain calm. DO NOT admit liability or offer any settlement or payment.
- Write down as much as possible of the following items:
- the personal particulars of the driver(s) involved in the road accident: name(s), IC number(s), address(es), driving licence number(s) and telephone contact(s) (if possible)
- the name of the insurer of the other vehicle(s)
- make/model and registration number(s) of the other vehicle(s) involved in the road accident
- registration number of tow truck(s) (if any)
- Draw a simple diagram of the accident scene. This will help you when making a police report later, as you will also be required to do so.
- Take photos of and note down the extent of the damage(s) to the vehicles/property involved (if the situation permits)
- Immediately call either your insurer’s towing service or Accident Assist Call Centre (AACC) for assistance [the number is 15-500]. They will assist in arranging for a panel tow truck to assist you and tow your vehicle to the nearest panel workshop
- Make a police report of the road accident. You are required by law to lodge a police report as soon as possible, within 24 hours of the accident
- Cooperate with the investigator/loss adjuster appointed by the insurer to conduct an independent:
- assessment of the repairs recommended by the panel workshop, or
- investigation of the theft of your vehicle
- Provide the necessary documents to the panel workshop as follows:
- The police report
- Insurance policy or cover note
- A copy of the policyholder and driver’s identity card
- A copy of the policyholder and driver’s driving licence
- Collect your car from the panel workshop once the repair work is completed
Can you make an insurance claim for a minor car accident?
You can make an insurance claim even if you run into a minor accident. This may be a minor accident that damages your taillights or side mirrors, for example. As the cost to fix these is low, you may choose to bear the cost yourself. If you wish to make an insurance claim for minor accidents, bear in mind that the claim may affect your NCD.
What should you do if you run into an accident with an uninsured car?
If you run into an accident with an uninsured car, you have the option to sue the party at fault through legal means. However, before you seek any legal action, ensure that you first lodge a police report within 24 hours and inform your insurer.
Please ensure that you note down the important details as follows:
- Third party’s vehicle make, model and registration number
- Third party’s name and address
- Your vehicle damage and conditions
- Contact details and statements of any witnesses
Follow the legal procedure to proceed with legal action.
Get car insurance at Bjak
As a responsible driver, you must ensure that your car insurance is active at all times, for your benefit and the benefit of other road users. We trust that you are a good driver. But if your car meets with an accident (god forbid!), remain calm and follow the procedure to make car insurance claims.
We highly encourage you to use the service by Bjak to renew your car insurance easily. Moreover, you can always reach out to our insurance experts for professional and unbiased insurance advice, for free.
Visit Bjak today to learn more about motor insurance services that we offer. Start by getting car insurance quotes online at Bjak.my.