Motor Insurance Claim 101: How to Avoid Common Pitfalls

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:

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. 

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