Motor Claim Process Updates - Malaysia

Bank Negara Malaysia (BNM) says that enhancements that have been made to the Policy Document on Claims Settlement Practices (PDCSP) will make the motor insurance claims process fairer, quicker and more transparent for all motorists. The changes were aimed at simplifying procedures, improving service standards and accelerating approvals for motor insurance claims.

Smoother Claim - Central bank has been working closely with insurers, the transport ministry, JPJ, Puspakom as well as repairers to make the process simpler and more user-friendly. A key improvements consumers can expect from the revised claims settlement practices policy document is a faster turnaround time, which sets clearer expectations for insurance providers to simplify the claim process so that consumers can benefit from fair, transparent and a timely claims outcome

The revised policy has reduced the timelines for each stage of the claims process from claims notification until claims payment, including how quickly insurers have to get back to you so that you are not left waiting in the dark. For example, the time taken for own damage claims have been reduced by 20 working days and the time to claim for theft has been reduced for about 80 working days. This will help to cut the average time taken to settle motor claims by about half.

Not At Fault -motorists who are not at fault in a vehicle accident can claim their own insurance without risk of losing their no claim discount (NCD) under the Own Damage Knock-For-Knock (ODKFK) policy.

Motorists with a comprehensive policy can claim directly from their own insurer without having to fork out the repair costs or wait for the other party’s insurer to process the claim. This will allow vehicle owners to carry out repairs to their vehicles quickly. All a motorist has to do is submit a police report and other required documents to their insurer to facilitate a claim.

ODKFK policy doesn’t apply in blanket fashion, and if the accident involves a bus or taxi or results in any injury, the affected motorist will have to claim from the party at fault’s insurer. Most everyday cases in accidents involving vehicles, ODKFK is a much smoother way to get your car fixed and back on the road.

24/7 Roadside Service - all insurance companies are now required to provide 24/7 roadside assistance services, be it through their mobile applications or websites. The move is aimed at helping motorists by limiting the engagement they usually have with unauthorized tow trucks following an accident.

The policy has also introduced a new requirement, where insurers are expected to establish a motor customer service charter, which should provide greater certainty and transparency to consumers on the claims process. This spells out very clearly what kind of service you can expect when making a claim, and consumers should be able to access the charter easily as insurers are required to publish it on their website. For example, you can find the service standard and turnaround time for the entire claim process in the charter, including applicable criteria and thresholds for expedited or fast track claims. 

With the charter, you can hold your insurer responsible and accountable if they do not adhere to their own standards and timelines or fail to keep you informed. The charter takes the uncertainty out of ‘how long will this take’ or ‘what can I expect’ and that really empowers consumers when dealing with claims.

In cases where consumers are dissatisfied with their insurance decision, she said there were options to help address this. The first thing you can do is complain to the insurer’s complaints unit. Their contact should be published clearly on their website as required by the complaints handling policy which we issued. Your insurer should also respond to you within 14 working days and will be shortened to five working days from April next year.