• Skip to main content
  • Skip to primary sidebar
  • Home
  • Compare Car Insurance Online!
    • Comprehensive Car Insurance
    • Mileage Based Car Insurance
    • Third Party Car Insurance
    • Third Party, Fire & Theft Insurance
  • Insurance
    • Insurans Kereta Online
    • 马来西亚车险
    • Motor Insurance
    • Motorcycle Insurance
    • Medical Card

Motor Insurance Claim 101: How to Avoid Common Pitfalls

Thachayani Ananth / 29/12/2020

Accidents can happen to anyone anytime even the most careful among us. Do you know what happens when you are involved in a car accident? You would have to make claims where this can be a perplexing and tedious procedure for all of us. 

Also, this is the part where most consumers complain due to their delays in insurance claims. Thus, it is significant to know clearly what to do after an accident to ensure a speedy claims process and alleviating your anxiety level. 

Check out the complete guide on how to make a claim from your car insurance in Malaysia if your car is involved in an accident, stolen or damaged due to natural disasters such as flood. 

Definitely you won’t face any more delays in receiving your claims and preventing your claims from being rejected after reading this article! 

Read on…

Before that, do you know what you can claim for when you are involved in an accident? In Malaysia, there are two types of claims that can be made for a car accident:

  • Own Damage Claim
  • Third Party Claim 

The compensation and the eligibility to apply for a claim depends on the type of car insurance policy you are covered under. If you have opted for additional coverage then you will be entitled to claim for your add-ons such as the damages caused by flood peril or windscreen coverage. 

Own Damage Claim

When you are making a claim on your own insurance policy, you would lose your No-Claim Discount entitlement. Your NCD would be forfeited and reverted back to 0%. This would impact the following year’s insurance renewal price as you will no longer be able to enjoy significant insurance savings. Hence, you would need to pay your premium in full and receive your NCD entitlement the year after. 

When notifying your insurance company about the accident, you should enquire and confirm the approved workshops. Make sure you have submitted the Motor Accident Report Form along with the other supporting documents to your car insurer. Remember, that the workshop will start repairing your car upon the approval of your insurance company. You will be informed by the workshop to collect your car upon the completion of repairs.

Third Party Claim 

You can retain your NCD entitlement if you make a third party claim where you are not the party at fault in the accident. 

There are two ways of making a third party claim:

  1. Submitting the claim directly to the insurance company of the party at fault.
  2. Submitting the claim to your insurance company if you have a comprehensive policy. 

However, you are recommended to submit to your own insurance company for a speedier claim processing. 

You are required to mitigate your loss as the third party claimant. You can appoint a loss adjuster to assess the condition and the severity of the loss where it can be recommended by your third party insurance company or the workshop. Submit all the documents such as the Motor Accident Report Form, adjuster’s report along with the supporting documents. You are entitled to claim from the third party insurance company for “Compensation for Actual Repair Time” and compensation for excess. Compensation for actual time repair is based on the adjuster’s recommendation on the number of days required for your car to be repaired. Insurance companies provide an additional seven days for any unforeseen delays.

Standard Scale for the Compensation for Actual Repair Time (CART) as shown below:

Private Use Vehicles CART/Day 
Up to 1500 cc RM30 
Above 1500 cc-2000 cc RM40 
Above 2000 ccRM50
Commercial Vehicles CART/Day 
Up to 1 ton RM40 
Above 1 ton – 2 ton RM60 
Above 2 tons RM90 
Trailer Lorries RM120 
Busses (Private)
 
RM90 
Other Buses (Stage/Expenses) RM180 
Taxi Hire and Drive RM40 
Motorcycles CART/Day 
Up to 250 cc RM10 
Above 250 cc RM15 

Remember, to keep the original receipts for taxi fare or car rental to claim for CART.

Hold on, do you know how theft claims work?

Theft Claim

  1. Lodge a police report immediately or at least within 24 hours of discovery.
  2. Notify your insurer immediately and they would further advise you on the procedures and would furnish you with a claim form.
  3. If the stolen vehicle is under finance, notify your finance or leasing company immediately.

Once you have submitted the claim form to your insurer, cooperate fully with your insurance company and assigned adjusters on the theft claim investigation. Usually, theft claim will take some time to investigate as it involves the police and your insurance company. You would receive the offer of settlement from your insurer within six months upon the completion of police investigation.

TAKE NOTE OF THE 3 GOLDEN STEPS

Can A Car Insurer Reject Your Claim?

You should always present accurate information for your claims to be successful. If you meet any of the following conditions below, then your claim would be deemed unsuccessful. 

  • Presenting a fraudulent claim where you have exaggerated the accident or the loss.
  • Filing a claim under a coverage that you are not in.
  • Filing a claim for a loss that is not covered in your policy.
  • Making improvements to your vehicle such as getting a fancy paint for your vehicle without prior notification to your insurer. The insurer would then reject your claim or compensate on the original value of the vehicle. 
  • If you have missed out your periodic premium payment. You may have your coverage suspended until you catch up your premium payments. If you insist on filing a claim while your insurance is suspended, your claim would be revoked.

Follow Our Top Tips Here to Avoid Possible Rejection of Claims

General Guidelines to Adopt in the Event of a Possible Claim Happening

Step 1: Call for Assistance

Call your insurance company or 24/7 Hotline 15-500 if your car is badly damaged and when you require a towing service. 

Only deal with authorized tow trucks who are a panel of your insurer. As you know, scamsters are consistently devising new tricks to defraud unsuspecting Malaysians. Hence, you should be aware of the common road scams in Malaysia. 

Remember, to get the name and registration number of the authorised tow truck operator from your insurance company or accident assist and wait for them to arrive.

Step 2: Gather Evidence

Before gathering the evidence, make sure that the surrounding condition is safe for you to step out of the car. 

  1. Take note of the place and time of the accident.
  2. Take photos of the accident scene and damages to the vehicles involved.
  3. Exchange information with the other party.
    • Contact number and address of the victims involved
    • Driving license number
    • Vehicle model and registration number
    • Insurance company

Step 3: Lodge A Police Report

  • Lodge a police report within 24 hours at the nearest police station. 
  • Remember that late reporting can result in a fine.

Step 4: Notify your Insurance Company

  • Notify your insurance company within 7 days of the accident. 
  • Submit all the necessary documents as soon as possible to your insurer.

Step 5: Send your Car to an Authorized Panel Workshop

  • Confirm with your car insurer for the list of panel workshops 
  • For your own damage claim, your car insurer will appoint an adjuster to assess the damage and do give full cooperation with the adjuster. 

In short, do take note of these handy guidelines when making a claim. Remember to check with your insurer before making any decision to avoid your claim from being rejected.

For the sake of simplicity, here is a short recap on the steps.

We surely hope this article was helpful and informative to you. You are more likely to have a clearer insight in mind when making a claim. 

Thus, it is wise to drive meticulously and safely on the road to avoid being involved in accidents. 

Did you know that Foodpanda employees and riders are covered by PolicyStreet. If you are having any difficulty in deciding which insurer to choose, you can always consult us 😉

Also, recently PolicyStreet has been listed under the category of “View from the Top” in The Fintech Times. 

Follow us on Instagram for fun facts/tips on insurance and also for the exciting promos on our Facebook.

To know more about car insurance do check out our website or give us a call – we are always ready to help.

Giving You A Peace of Mind! 

#PolicyStreetcares 🙂

Primary Sidebar

Search Topic Here

Car Insurance

5 Reasons Not To Drive Without Car Insurance

E-hailing Insurance Add-on: What you need to know

Guide: What To Do If You Hit An Animal While Driving

PrOmilej: The Car Insurance For MCO?

Windscreen Insurance (2021): All You Need to Know!

Bahasa Malaysia

11 Makanan Kucing Terbaik Untuk Bulu Kucing Anda

Makanan Kucing Terbaik Untuk Bulu, Gemuk Dan Anak Kucing Anda!

Antara Doktor Pakar Sakit Puan

Pakar Sakit Puan (2021): 20 Senarai Doktor di Malaysia

Antara Doktor Pakar Sakit Tuan

20 Senarai Doktor Pakar Sakit Tuan di Malaysia (2021)

Apa itu NCD? Panduan untuk Diskaun Tanpa Tuntutan (2021)

15 Rumah Kucing Yang Simple Dan Mudah

15 Rumah Kucing Yang Simple Dan Mudah Dibina Secara DIY

Car Insurance Malaysia

Insurans kereta Online

汽车保险

Motorcycle Insurance

+601 11-684 2590

Get in Touch

Unit D-18-3A, Menara Suezcap 1
KL Gateway, No. 2 Jalan Kerinchi,
Gerbang Kerinchi Lestari, 59200,
Kuala Lumpur, Malaysia

 Call: +60 3-3310 0063

 WhatsApp: +601 11-684 2590

 Email: admin@policystreet.com

Our Company

About Us
News & Blog
Careers
Customer Support
Contact

Products

Life Insurance
Medical Insurance
Car Insurance
Motorcycle Insurance
Medical Malpractice Insurance
Home and Property Insurance
Disability Insurance
Diabetes Insurance
Cyber Insurance
Cancer Insurance
Business and Commercial Insurance

Newsletter

Receive resources & tools that can help you prepare for the future. You can cancel anytime.

Subscribe

PolicyStreet is a Financial Adviser approved by Bank Negara Malaysia Copyright © 2020 Polisea Sdn. Bhd.
Registration No: 201601041144 (1212085-T) All Rights Reserved

Insurans Kereta Online