PETALING JAYA: The own damage knock-for-knock (OD-KFK) claims system should be extended beyond private cars, say road safety advocates.
They also called for clearer and more accessible guidelines to ensure motorists understand how such claims work.
Vehicle Theft and Accident Reduction Council of Malaysia coordinator Mas Tina Abdul Hamid said more vehicle types should be included under OD-KFK coverage.
“It is undoubtedly a beautiful step that allows speed, no-claim discount (NCD) protection and digital conveniences for straightforward claims, but it only covers private vehicles.
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“Limitations remain, especially for crashes involving commercial or public transport vehicles,” she said in an interview.
Mas Tina was asked to comment on a recent announcement by Bank Negara that motorists who are not at fault in road accidents can claim directly from their own insurer without losing their NCD.
She said clear and accessible guidelines pertaining to how these claims work should be provided to motorists by insurers.
“Data sharing must be seamless between insurers and other operators to reduce disputes.
“Communication must also be improved between insurers and claimants, alongside updates on the claims, programmes or other matters that require further discussions,” she said.
Mas Tina also said dash cam footage can be the game changer in such cases.
“It provides firsthand records of the incident, which is crucial for providing facts for the case.
“This allows the authorities as well as insurers to easily verify the party at fault, alongside preventing fraudulent claims,” she added.
She further stressed that the standardisation of dash cam footage quality could be considered in the process of streamlining the handling of claims.
“In addition, awareness campaigns must be held to increase knowledge on this avenue for claims,” Mas Tina said.
Malaysian Institute of Road Safety Research chairman Prof Dr Wong Shaw Voon said the OD-KFK is a good feature as it speeds up claims for motorists who are not at fault.
“Claimants can avoid delays, disputes and have peace of mind as they can directly deal with their own insurer.
“If a motorist is not at fault, using the OD-KFK should not affect their NCD.
“Hence, it is a win-win option where fast repairs can be carried out without losing the NCD,” he said when contacted.
General Insurance Association of Malaysia (PIAM) said those involved in accidents where the other party is clearly at fault can consider such claims.
“The NCD will not be affected. You can claim the excess that you had paid from the insurer of the third party,” it said.
The association advised policyholders to check with their insurers for any specific eligibility criteria.
PIAM said OD-KFK claims allow for impacted motorists to claim repairs directly for their own insurers, bypassing the process of going through the third party’s insurer.
“It avoids dealing directly with the other party’s insurer and reduces the need for a lengthy claim process, which can delay repairs.
“Additionally, you do not need to appoint your own adjuster.”
However, PIAM said there can be exceptions for such claims.This includes where third party bodily injury is involved, regardless of who is at fault, if the vehicle is foreign-registered and the insurer is not based domestically, and for crashes involving commercial vehicles.
“While you can claim under own damage, it is only possible if you have a comprehensive motor policy.
“But you will lose your NCD if making an own damage claim.”
Recently, it was announced that motorists who are not at fault in road accidents can claim directly from their own insurer without losing their NCD.
In a podcast, Bank Negara Consumer and Market Conduct Department deputy director Lailatul Akma Mohd Shukor said the requirement is part of a revised motor insurance claims policy.
She said the OD-KFK option allows drivers with comprehensive motor insurance to repair their vehicles through their own insurer instead of waiting for the at-fault party’s insurer.
To use the OD-KFK, policyholders simply need to submit a police report and the necessary documents, after which the insurer will handle the claim.
The option does not apply if the accident involves a bus or taxi, or if there are injuries, in which case claims must be made against the at-fault party’s insurer.
One of the key improvements is quicker turnaround times, which set clearer expectations for insurers while simplifying the process for policyholders.
