Car insurance is essential to protect a vehicle against incidents like road crashes. It enables a vehicle owner to claim insurance to cover the cost of damage resulting from an accident. However, it must meet the terms of the insurance claim.
There are three types of insurance claims that you may apply in the event of a road accident.
Read on as Bjak will explain one of the insurance claims – Own Damage Knock-for-Knock.
The knock-for-Knock agreement is a contract signed by all insurance companies in Malaysia. This aims to control insurers from exercising their respective quid pro quo rights against each other.
It ensures that each insurance provider takes responsibility for the damage done to their policyholder’s vehicle.
A comprehensive policyholder can claim for accidents under their policy plan. However, the accident must not be the policyholder’s fault.
Knock-for-Knock agreement vs third-party claim
- Knock-for-Knock claim will not affect your No Claims Discount (NCD) rate even if you claim under your policy. This differs from the own damage claim that will hurt your NCD.
- The procedure for a Knock-for-Knock claim is speedier than the third-party claim (claim from the involved party that hits your car).
- Knock-for-Knock claim allows you to apply excess and CART for the other insurers (insurer of the other party involved).
What are the requirements for making a knock-for-knock claim?
The main requirement for this claim is to prove that you are not the party at fault.
The other requirements for the policyholder to make the claim also include:
- You are a comprehensive policyholder
- The third party’s vehicle is insured and verified
- The third party’s vehicle must be insured by a Malaysian insurance company
- No bodily injury claims were involved
- The party at fault’s vehicle is not a commercial vehicle such as a taxi, bus, or others
Essential documents to make a Knock-for-Knock claim?
- A completed claim form
- A verified copy of original police report
- Copy of identity card & driving license of the insured person and the driver at the time of the accident
- 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 itself by the appointed panel
Who can make a Knock-for-Knock claim?
All-comprehensive policyholders (private vehicles) can apply a Knock-for-Knock claim.
Understand the form of claim that you want to apply
You must understand all types of claims to facilitate your claim process.
For example, we have elaborated on the Knock-for-Knock claim. This claim gives coverage to you in the event of an accident with another vehicle, unlike the third-party claim. In addition to a speedy procedure, you will also not lose your NCD rate despite claiming under your policy.
Therefore, make sure to insure your car with the best insurance plan. An example is a comprehensive plan which will allow you to make the Knock-for-Knock claim. You may get the best comprehensive plan by visiting Bjak’s website. There are 15 leading insurance brands available for you to choose from.