Seeking Bank Negara’s intervention in unfair practices

I WISH to highlight a major gap in Malaysia’s motor insurance framework that unfairly penalises car owners who are not at fault in accidents involving motorcycles or unlicensed drivers.

I am one of these unfortunate victims who now have to fork out thousands of my hard-earned money when I did not do anything wrong.

Currently, when a motorcycle causes damage, car owners cannot claim repairs from the motorcyclist’s insurer. This forces car owners to either pay out-of-pocket or claim under their own policy, resulting in loss of No-Claim Discount (NCD).

Even if the motorcyclist was clearly at fault, the financial burden would still fall on the car owner. Worse, if the motorcyclist suffered bodily injuries, the claim would also be directed to the car owner’s policy, resulting in loss of NCD, again even though the motorcyclist was at fault.

Similarly, when crashes involve unlicensed drivers, insurers often reject claims from the innocent party entirely, leaving them without recourse even if the vehicle driven by the unlicensed driver had a valid insurance.

I respectfully seek Bank Negara’s clarification and intervention on these issues. Why are OD-KFK (Own Damage - Knock for Knock) protections not extended to motorcycle-related accidents?

Can measures be introduced to preserve NCD for faultless drivers and ensure victims are protected when the at-fault party is unlicensed?

Responsible motorists who pay premiums and comply with the law should not be left vulnerable due to systemic loopholes. It’s sad enough that this has been allowed to go on for so long – with thousands of car owners ending up on the losing side for so many years – especially with the number of motorcycles on the road now (including illegally on highways and not on bike lanes due to poor enforcement by the authorities).

I can confirm that all insurance companies in Malaysia are practising the same thing. I was told the only way was to take the matter to court, which again you’re unlikely to win due to the insurance policy’s clauses.

Anyway, legal costs and the lengthy duration of cases alone will deter the affected owners, plus there’s no guarantee the other party can actually pay up if you do win.

CONCERNED MALAYSIAN

Selangor