‘Betterment’ in motor insurance explained

WITH reference to the recent spate of letters on the “betterment factor” in motor insurance, the General Insurance Association of Malaysia (Piam) would like to provide more information to the public.

The basic premise of a motor insurance policy is to place the car owner in the same condition as he would have been in before an accident occurs. Betterment will apply when, in the course of repairing an accident-damaged vehicle, a new part is used to replace an old part.