Car accidents are something every driver hopes to avoid, but unfortunately, they do happen.
When they do, having car insurance can be a huge relief, protecting you from potentially high repair costs.
Understanding how to make a car insurance claim in Malaysia is crucial for every vehicle owner.
This guide will walk you through the different types of claims and the general process, making it easier for you if you ever need to make one.
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Understanding Your Coverage
Before diving into claims, it’s vital to know what kind of car insurance you have. In Malaysia, there are typically three main types of coverage:
1. Third Party Cover
This is usually for older cars and only covers damages or injuries you cause to another person or their property. It does not cover damage to your own vehicle.
2. Third Party, Fire & Theft Cover
This offers the same protection as third-party cover, but also includes coverage if your car is damaged by fire or is stolen. It still doesn’t cover damage to your car from an accident you caused.
3. Comprehensive Cover
This offers the most extensive protection, covering damage to your own vehicle (even if it’s your fault), as well as third-party liabilities, fire, and theft. The premium for this is usually higher.
Knowing your coverage will determine what types of claims you are eligible to make.
Types of Car Accident Insurance Claims You Can Make
Depending on your insurance coverage and the circumstances of the accident, you can make different types of claims:
1. Own Damage (OD) Claims
This applies if your vehicle is damaged due to your own negligence. You can only make this claim if you have comprehensive coverage.
For example, if you accidentally hit a fence while reversing. Making an OD claim usually affects your No-Claim Discount (NCD), causing it to reset to zero the following year, which may increase your premium.
However, you won’t lose your NCD in two specific situations:
- No-Fault Damage: If the accident was caused by a third party and the police confirm it wasn’t your fault.
- Windscreen Coverage: If you have purchased additional windscreen coverage and are claiming for windscreen damage. Note that windscreen add-ons usually have a limit of one claim per year.
2. Own Damage Knock-for-Knock (OD-KFK) Claims
If an accident is caused by a third party, you can make an OD-KFK claim through your comprehensive insurance. Your insurer will then claim the repair costs from the third party’s insurance company.
The benefits of this include:
- You keep your NCD as you are not at fault.
- You can claim for excess and loss of use from the third party’s insurance.
- The repair process for your car might be faster. This claim also requires comprehensive insurance.
3. Third-Party Property Damage (TPPD) Claims
If a third party’s negligence causes damage to your vehicle or property, and you are not at fault, you can make a TPPD claim against their insurance company.
This is the basic claim you can make even if you don’t have comprehensive coverage.
You can claim for damages to your car, other financial losses like excess, and potentially compensation for the time your car is unusable (Compensation for Assessed Repair Time – CART).
4. Windscreen Damage Claims
If you’ve specifically purchased windscreen coverage, you can claim for damages to your windscreen. This usually doesn’t affect your NCD.
Step-by-Step Guide to Submitting a Car Insurance Claim in Malaysia
Here’s a general procedure to follow when making a car insurance claim in Malaysia:
1. Get Help Immediately After the Accident:
Stay calm and do not admit liability or offer any settlement.
Evaluate the damage to your vehicle.
If the damage is severe and your car is undrivable, contact your insurer to arrange for a registered tow truck.
If your car is still usable, move it to a safe location on the side of the road.
2. Gather Evidence at the Accident Scene:
Record the location and time of the accident.
Get the personal particulars of all parties involved.
Take pictures of the accident from various angles.
If there are any witnesses, try to get their contact details.
Draw a simple diagram of how the accident occurred.
3. Make a Police Report:
Lodge a police report at the nearest police station within 24 hours.
Obtain a copy of the police report.
4. Notify Your Insurer:
Inform your insurance company about the accident within seven (7) days.
Provide them with details of the accident and the police report number.
5. Send Your Vehicle to a Panel Workshop:
Request a list of approved panel workshops from your insurance company.
Provide the necessary documents, including the police report.
6. Prepare Supporting Documents:
You will typically need:
- Completed claim form.
- The original copy of the police report.
- Copies of the identity card and driving license.
- Copy of the Vehicle Ownership Certificate.
- Pictures of the accident.
7. Claim Processing and Vehicle Repair:
The panel workshop will assess the damage and submit a repair estimate.
Once the claim is approved, the workshop will begin the repairs.
8. Vehicle Collection and Claim Completion:
Once the repair work is completed, you will be notified to collect your car.
Inspect the repairs before signing the release form.
Important Things to Know Before Making a Claim
- Understand your policy coverage thoroughly.
- Report the accident and notify your insurer promptly.
- Provide accurate information.
- Ensure that the driver at the time of the accident is a named driver in your policy.
- Make sure you were using your car in a legal and appropriate manner.
- Prepare and submit all the required documents.
- Do not admit fault at the scene of the accident.
- Making multiple Own Damage claims can increase your future premiums.
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What If Your Claim Is Rejected?
If your car insurance claim is rejected, you can appeal the decision with your insurance company.
If your appeal is unsuccessful, escalate the matter to PIAM, Bank Negara Malaysia, or the Ombudsman Financial Services.
Making a car insurance claim might seem daunting, but by understanding the different types of claims and following the correct procedures, you can navigate the process more effectively and protect yourself from financial burdens after an accident.
Always ensure your car insurance is active and that you have the appropriate coverage for your needs.
