After an accident, your insurer may tell you that an adjuster will look at your car before any repair is approved. Many drivers only hear the word for the first time at this stage.
An insurance adjuster, also called a loss adjuster, is a professional who investigates how a loss happened and works out how much it should cost to put right. Their report helps the insurer or takaful operator decide what to pay. This guide explains what adjusters do in Malaysian car claims, who appoints them and what you can do if you disagree with their assessment.
What is an insurance adjuster?
In Malaysia, adjusting business means investigating the cause and circumstances of a loss and deciding the amount of the loss for an insurance or takaful claim. Adjusters usually work for independent adjusting firms, not for the insurer itself.
Insurers and takaful operators appoint these firms to inspect the damage, check the facts and send in a written report. The insurer then uses that report, together with your policy terms, to decide on your claim.
Adjusters must be registered with BNM
Adjusting is a regulated activity under the Financial Services Act 2013, so a firm must be registered with Bank Negara Malaysia (BNM) to carry on adjusting business. BNM publishes the list of registered adjusters on its website, so you can check whether a firm is on it.
BNM also sets standards in its policy document on adjusters, revised on 29 August 2025. It covers fit and proper requirements, governance and business conduct. It also states that adjusting work must be carried out only by the firm’s full-time adjusting employees.
What does an adjuster do in a car insurance claim?
The adjuster’s job depends on the type of claim. In a typical motor claim, an adjuster will:
Inspect the damaged vehicle, usually at the workshop, and take photos of the damage.
Check that the damage matches how you and the police report describe the accident.
Review the workshop’s repair estimate, including the parts and labour cost.
Recommend which repairs are reasonable and related to the accident.
Prepare a report for the insurer with the assessed repair cost.
Because the adjuster looks at whether each item on the estimate is linked to the accident, damage that was already there before the accident is usually not approved. Clear claim documents and photos taken at the scene help the adjuster’s assessment.
Own damage claims
If you claim from your own comprehensive policy, your insurer will appoint an adjuster to assess the damage. You should send your car to the insurer’s panel workshop and cooperate with the adjuster. Repairs normally start only after the insurer approves the assessed cost.
Third-party property damage claims
If another driver caused the accident, you can claim from their insurer instead. In this case, you usually appoint an adjuster yourself to assess the repair cost, and the adjuster’s report is one of the documents you submit to the other party’s insurer. Your workshop can often help to arrange this.
If both cars have comprehensive cover, a knock-for-knock claim lets you claim from your own insurer for an accident that was not your fault.
Theft and other investigations
When a car is stolen, the insurer may appoint an investigator or loss adjuster to look into the theft. Adjusters may also investigate claims where the facts are unclear, for example when the damage does not seem to match the accident description.
Motor and non-motor adjusters
Adjusting firms often split their work by type of claim. The table below shows the main areas.
Area
What the adjuster handles
Motor own damage
Repair cost of the policyholder’s own car after an accident, flood, fire or theft.
Motor third party
Damage to another person’s car or property, and injury or death claims made by third parties.
Non-motor
Losses such as fire, burglary, natural disasters and public liability involving homes, shops and businesses.
For bodily injury claims, the adjuster checks the facts of the accident and the supporting documents so that the insurer can assess the compensation. Our guide on who pays for injuries after a car accident explains the options in more detail.
How the adjuster’s report affects your claim
The adjuster’s report is one of the key documents the insurer uses to decide your claim. It can affect:
The approved repair cost: the insurer generally pays for the repairs the adjuster assesses as reasonable, subject to your policy terms and any excess.
Which parts are replaced or repaired: the adjuster may recommend repairing a part instead of replacing it.
CART compensation: for third-party claims, compensation for loss of use is based on the repair period assessed by the adjuster, not the number of days your car actually stays in the workshop. Read more in our guide to CART in car insurance.
An adjuster appointed by your insurer works for the insurer, so you cannot negotiate the claim amount with them as you would with a seller. You can still give them information that helps them assess your claim fairly.
Be available for the inspection and answer questions honestly.
Share photos of the accident scene and the damage.
Point out any damage you believe the workshop missed.
Ask your insurer for an explanation if items are not approved.
The rules are different for third-party property damage claims, where you can appoint your own adjuster to assess your losses.
What to do if you disagree with the assessment
If you think the assessed amount is too low, raise it with your insurer first. Ask which items were rejected and why, and send any extra evidence, such as a second quotation or photos.
Complain in writing to your insurer: every insurer and takaful operator has a complaints unit that must respond to you.
Refer to FMOS: the Financial Markets Ombudsman Service handles insurance and takaful disputes of up to RM250,000. You must refer the dispute within six months of the insurer’s final decision.
Contact BNMLINK: BNM’s consumer contact centre can help with complaints about how a financial institution treated you.
BNM also introduced the Insurers and Takaful Operators-Repairers Code of Conduct, effective 2 January 2025. It sets minimum standards for motor claims settlement between insurers and repairers and requires insurers to have an internal process for resolving disputes with repairers.
Tips for a smoother claim with an adjuster
Lodge a police report within 24 hours of the accident.
Notify your insurer promptly. For own damage claims, this is usually within 7 days of the accident.
Take clear photos of all vehicles, the scene and the damage before anything is moved, if it is safe to do so.
Do not start repairs before the insurer approves them, unless your insurer tells you otherwise.
Keep copies of every document and message you send.
An insurance adjuster is the person who checks what happened and how much your loss should cost. For own damage claims, your insurer appoints the adjuster. For third-party claims, you usually appoint one yourself. Knowing how adjusters work, and that they must be registered with BNM, helps you prepare the right evidence and respond if you disagree with the outcome.
The right cover makes every claim easier. Compare car insurance on BJAK to find a policy that suits you before your next renewal.
What is the difference between an insurance adjuster and a loss adjuster?
In Malaysia, both terms usually refer to the same role. An adjuster investigates the cause and circumstances of a loss and assesses the amount for an insurance or takaful claim.
Who appoints the adjuster in a car insurance claim?
For an own damage claim, your insurer appoints the adjuster. For a third-party property damage claim against the other driver’s insurer, you usually appoint the adjuster and submit their report with your claim.
How can I check if an adjuster is registered?
Adjusters must be registered with Bank Negara Malaysia to carry on adjusting business. You can check the list of registered adjusters on the BNM website.
Can I start repairs before the adjuster inspects my car?
Generally, no. Repairs usually begin only after the insurer approves the assessed cost. Starting early may make it harder to prove the damage, so check with your insurer first.
What can I do if I disagree with the adjuster's assessment?
Raise it with your insurer first and send any extra evidence. If you are still not satisfied, you can refer the dispute to the Financial Markets Ombudsman Service within six months of the insurer’s final decision, for claims of up to RM250,000.
Nabil Farhan· · 6 min read
