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  • Lionel Lye

What should you do when you met with a car accident?

Updated: May 25, 2020



Most of us are on the road every day using our car to earn a living. We never know when and will never want to meet with an accident. However, someone else’s negligence can lead to an accident and can affect anyone on the road. So, the question here is, do you know what to do when you met with a car accident in Malaysia? What are the procedures to make a claim?


It is always better to be prepared and educated for any potential mishaps.


According to Statista (Malaysia: number of road accidents | Statista, 2020), the number of accidents in Malaysia is on the rise every year from 2012 to 2018.


In this article, I would like to explain the different scenarios to you if we are involved in a car accident and how to lodge a claim.


Firstly, when we met with an accident, always try to keep calm and do not panic. Make sure it is safe for you to step out of your car. Do not admit you are at fault and agree to any offer or settlement. Do not sign anything.


Let’s move on and see what the types of claims we can make are.


Comprehensive cover:

An own damage claim is a claim loss or damage to your car from your own insurance company. How to claim from your own insurance company?


What to claim:


1. If the accident was your fault, make an ‘Own Damage’ claim.

2. If the accident was NOT your fault, make an ‘Own Damage Knock-for-knock’ claim (instead of making a third-party claim).

Benefits of making ‘Own Damage Knock-For-Knock’ Claim:

- Faster claims processing

- You will not lose your No Claim Bonus/Discount (NCD) entitlement

- You can claim excess* and CART** from the other party’s insurance company


How to claim:

Submit to your insurance company:

- Completed claim form

- Original copy of police report

- Copy of driver’s and policyholder’s identity card and driving license

- Copy of vehicle ownership certificate

- Photos of accident scene and damages to the vehicle

- Police letter informing which party is compounded for a road traffic offense


Third-party cover:

A third-party property damage claim would be a claim against the other party’s insurance company if the accident were not your fault.


How to make a third-party property damage claim?


What to claim:


1. Damage to your car or property in a road accident caused by the other party.

2. Other financial losses, e.g., CART**, excess*.

How to claim:

- Send your car to the insurance company’s panel workshop

- Appoint an adjuster to evaluate the cost of your car’s damage

- Submit to the other party’s insurance company:

- Original copy of policy report

- Copy of driver’s and policyholder’s identity card and driving license

- Copy of vehicle ownership certificate

- Adjuster’s report

- Bill of repair costs of your car

- Photos of accident scene and damages to the vehicle

- Police letter informing which party is compounded for a road traffic offense


Quick Guide To Motor Insurance Claims:


1. Call for assistance – Do not panic. Keep calm and call your insurance representative/company or 24/7 Hotline if your car is badly damaged and need towing service. Always remember to deal only with authorized tow trucks. Get the name and registration number of the authorized tow truck operator from your insurance company or accident Assist and wait for them to arrive.

2. Gather Evidence

- Note the place and time of the accident

- Take photos of the accident scene and damages to vehicles involved

- Exchange information with the other party such as:


-> Driving license number

-> Contact number and address

-> Vehicle model and registration number

-> Insurance company


*Again, always assess whether it is safe for you to step out of your car


3. Lodge police report

- You must lodge a report within 24 hours at the nearest police station

- Late reporting can result in a fine


4. Notify your insurance company

- Notify your insurance company within seven days of the accident

- Submit your claim as soon as possible


5. Send your car to a panel workshop

- Ask your insurance company for the list of panel workshops

- For Own Damage Claim, your insurance company will appoint an adjuster to assess the damage (Please co-operate with the adjuster).



The 3 critical steps for motor accident claims are:


1) Call your insurance representatives/company or Accident Assist Call Centre

2) Gather evidence

3) Lodge police report


Tips on how to avoid possible rejection of claims.


- Notify your insurance company within 7 days from the accident

- Ensure complete documentation

- Ensure the private car is not used for hire or to carry goods for business purpose


Important Terms:


Compensation for assessed repair time (CART)**

The amount payable by the other party’s insurance company for the number of days it takes to repair your car as assessed by the adjuster (not the number of days your vehicle is in the workshop)


CART = Rate per taxi fare receipt or car rental agreement or fixed scale of CART x Number of days to repair the car


Excess*

An excess is an amount you have to pay whether the accident is your fault or otherwise. The insurance company pays the remaining claim balance.


Betterment

The betterment applies to car age 5 years or more:

- When an old part if replaced with a new original part

- You bear the partial cost of the new original part (depending on your car’s age) as your vehicle will be in a better condition than before the accident.



As always, if you need more information, you can always contact us.


For complaints or any queries, please contact your insurance agent or company. And if your insurance company does not satisfactorily resolve your question, you may contact BNMTELELINK at 1300 88 5465 or bnmtelelink@bnm.gov.my.


Reference:


Statista. 2020.Malaysia: Number Of Road Accidents | Statista. [online] Available at: <https://www.statista.com/statistics/794875/number-of-road-accidents-malaysia/> [Accessed 24 May 2020].

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