A motor insurance policy / takaful certificate (collectively referred to as motor policy) provides financial protection to you in the event your vehicle is involved in a road accident or is stolen However, there are limits to the extent of financial protection provided, so it is important that you understand the scope of protection under each type of motor policy Limitations to the policy Types of policies Comprehensive policy Third Party, Fire and Theft policy Third Party policy Financial protection against Third Party Bodily Injury or Death claim Third Party Property Damage claim Fire claim or Theft claim No Fault Own Damage claim or Own Damage claim Additional covers Flood Windscreen Legal liability to passenger Legal liability of passenger Compensation for Assessed Repair Time Personal Accident (separate policy)
What to do in an accident Be calm and do not panic. If there are no injuries, move your vehicle to a safe area away from traffic, where possible. Note the names and addresses of the other driver(s) involved. Note the model and vehicle registration number of the vehicle(s) involved. Note names and addresses of witnesses, if any. Sketch a simple diagram of the accident scene and the position of each vehicle right before and after the accident (Photos of the accident scene, if available, can be very helpful). Exchange information on the names of your respective insurance companies / takaful operators. Do not discuss on whose fault it was. This may complicate the handling of your claims. If your vehicle needs to be towed, ensure that the vehicle will be sent to the correct workshop. Report the accident to the police within 24 hours. Inform your insurance company / takaful operator even if you do not intend to make a claim. The third party involved in the accident may make a claim against your insurance company / takaful operator which would cause you to lose your no-claims-discount (NCD).
Legal pursuit In making a motor claim involving third party bodily injury and death or third party property damage, you may pursue your claim directly with the other vehicles insurer or appoint a lawyer to act on your behalf at any time.
Should you choose to pursue your claim directly with the other vehicles insurer, you should ensure that the compensation that you are to receive from the insurer is adequate. Please exercise care and where necessary seek expert advice in reaching any settlement for compensation with the other vehicles insurer as such settlement is likely to be final.
If you are of the view that the compensation being offered to you is inadequate, you may further negotiate with the other vehicles insurer or may wish to consult a lawyer. If making own damage claim Insurer may seek additional charges for : Betterment-cars > 5 years Excess Endorsement :RM400 if driver under 21 Holder of Provisional or Probation Not named in policy If you are making a No-Fault Own Damage
You will not lose your NCD entitlement. However, you will be subject to the same charges under an Own Damage claim (Betterment, Excess and Endorsement 2(f)) You may then write to the other partys insurer seeking reimbursement for all of the above charges except betterment. However, if the accident is found to be caused by you, your No-Fault Own Damage claim will be converted into an Own Damage claim If you are making a theft claim To ensure that the investigation is thorough and to allow possible recovery by police authorities, your insurer may require a reasonable process time of the following time frame. 6 months from the date of notification of theft; and/or when official police investigations have been completed, whichever is earlier. After notifying your insurer of the theft of your vehicle, if you are informed that your vehicle is recovered : Do NOT take possession of your vehicle from any authority/party unless authorised by the police; or Immediately notify your insurer/agent so that your insurer may make proper arrangements to recover your vehicle and conduct an independent survey of your vehicle.
If you are making a theft claim Under a normal Comprehensive motor policy, insurers will pay you compensation equal to the present market value of your vehicle at the point of theft or the sum insured/ sum covered of the vehicle (whichever is less). If you wish to be compensated on sum insured/ sum covered basis, please ask your insurer about the possibility of converting your Comprehensive policy to an Agreed Value Comprehensive policy. If you are making a Third Party Bodily Injury claim or a Dependency claim: If you and/or passengers in your vehicle are injured in an accident, you and/or passengers in your vehicle may claim compensation for injuries sustained from the insurer of the other vehicle. Compensation will only be paid by the insurer of the other vehicles driver in the event the insured/ covered driver is found to have caused the accident. If you and/or passengers in your vehicle were to succumb to injuries in a road accident, your and/or your passengers dependents (spouse, children and parents) may make a dependency claim against the insurer of the other vehicle. If you are making a third party property damage claim
If your property (including vehicle) is damaged in a road accident caused by the other party, you may claim for compensation from the other partys insurer Cost of repair to your property to return it to its previous state Cost of replacing your property with another that is alike in terms of age, value and / or condition Cost of loss of use of your vehicle i.e charges for rental car (up to a specified limit)