Motorists who are not at fault in accidents can claim repairs directly from their own insurers without affecting their No Claim Discount (NCD).
Bank Negara Malaysia (BNM) Consumer and Market Conduct Department deputy director Lailatul Akma Mohd Shukor said the initiative was introduced under reforms to motor insurance claims settlement practices.
Known as the “Own Damage Knock-for-Knock” (OD-KFK) option, it allows drivers with comprehensive motor insurance policies to have their vehicles repaired directly through their own insurers, without waiting for the third-party insurer to process the claim.
“Many people are still unaware that even if you are not at fault, you can claim from your own insurer to repair your car. If it is confirmed in the police report that you are not at fault and you hold a comprehensive policy, you can claim from your own insurance company, and your NCD will remain intact,” she said in a BFM podcast.
She said motorists only needed to submit the police report and relevant documents to their insurers, who will manage the rest of the process.
However, she added that accidents involving buses, taxis, or cases where injuries occur still required claims to be made through the third-party insurer.
Lailatul Akma said that BNM had introduced stricter timelines for claims processing to ensure faster outcomes.
“One of the key improvements consumers can expect is faster turnaround times, which sets clearer expectations for insurers and simplifies the process, so that consumers benefit from fair, transparent, and timely outcomes,” she said.
Under the revised policy, the average processing time for own damage claims has been reduced by 20 working days, while third-party property damage claims are expected to be completed up to 80 working days sooner.
BNM estimates that the changes will halve the overall settlement period for most motor insurance claims.
The central bank has also launched Digital Roadside Assistance, allowing motorists to request authorised tow trucks, locate workshops, and submit documents directly through their insurers’ mobile apps or websites.
“You no longer need to figure out who to call or deal with unauthorised tow trucks. Simply open your insurer’s app to request roadside assistance, find the nearest workshop, and submit the required documents — all available 24/7, even if your car breaks down or has a flat tyre,” Lailatul Akma said.
Another key enhancement is the requirement for insurers and takaful operators to publish a Motor Customer Service Charter, outlining service standards and turnaround times for claims.
To further protect consumers, insurers must respond to complaints within 14 working days, with the timeline shortened to five working days from April 1 next year.
Policyholders who remain dissatisfied can escalate their cases to the Financial Ombudsman Service (FOS), an independent body that resolves disputes free of charge.
“These reforms are designed to make the motor claims process fairer, faster, and more transparent, while enhancing consumer trust in the financial system,” she said.
Source: https://www.nst.com.my/news/nation/2025/08/1267693/bnm-faultless-drivers-can-claim-repairs-without-losing-ncd
