FAQ

PURCHASING MOTOR INSURANCE

Q: What is the different of Comprehensive Coverage and Third Party Coverage?
A: There are different coverage as the below table

	TYPES
COVER	Third party cover	Third party, fire & theft cover	Comprehensive cover
Liabilities to third party for: Injury Death Property loss/damage	Yes	Yes	Yes
Loss/damage to own vehicle due to accidental fire/theft	No	Yes	Yes
Loss/damage to own vehicle due to accident	No	No	Yes
Liability to driver and passenger of own vehicle (bodily injury, property, death)	No	No	No

Q : How to determine the sum insured for my car?
A : The sum to be insured should be based on the market value of your car. Market value represents the value of the insured vehicle herein at the time of loss or damage less due to allowance for wear and tear and/or depreciation.

Q: Can I insure below the market value?
A:  If you insure your vehicle at a lower sum than its market value, you are considered as self-insured for the difference, i.e. in the event of loss / damage, you will only be partially compensated (up to the proportion of insurance) by your insurance company.

Q: Can I insure above the market value?
A:  Should you insure your vehicle at a higher sum than its market value, the maximum compensation you will receive is the market value of the vehicle as the policy owner cannot ‘profit’ from a motor vehicle claim. Therefore, you would have paid higher premiums for nothing.

Q: What is Agreed Value?
A:  Agreed Value' states that:- "The Insurer will pay You the agreed amount as specified in the Schedule of the Policy in the event Your vehicle is stolen or totally destroyed during the Period of Insurance provided the Insurer is liable to pay for such loss or destruction under the Terms and Conditions of the Policy."
Agreed Value will be included if there is inclusion of Endorsement 87

Q: What is NCD?
A: NCD is a ‘reward’ scheme for policy holders who have no claims made against their policies during the preceding 12 months. The discount given is based on a fixed rate provided by Persatuan Insurans Am Malaysia (PIAM) Motor Tariff.

NCD For Private Car
Period of Insurance	Discount
After the 1st  year of insurance	25%
After the 2nd  year of insurance	30%
After the 3rd  year of insurance	38.33%
After the 4th  year of insurance	45%
After 5th years  and above of insurance	55% (Max)

Q: What is Excess?
A: Also known as a ‘deductible’. This is the amount of loss you have to bear before your insurance company will pay for the balance of your vehicle damage claim. There are 2 types of excess applicable are as follows:

Q: Compulsory excess of RM400
A: If your vehicle is driven by a person not named in your policy or a person named in your policy who is under the age of 21, the holder of a provisional (L) driving licence or the holder of a full driving licence of less than two years.

Q: Other excess
A: Applicable at the discretion of your insurance company and in some cases, no excess is imposed. You can negotiate with your insurance company on this excess.

MOTOR INSURANCE CLAIM

Q: My car met with an accident. What type of claim should I make?                                       A: The type of claim you can make depends on the coverage of your motor policy. You can make an Own Damage claim for the damages to your vehicle only if your policy is a comprehensive coverage. Your NCD will be forfeited in the process. Third party coverage does not cover the damages to your vehicle. It will only be limited to the legal liability to third parties involving death, bodily injury and/or loss or damage to property. However, if the accident is not your fault, you can make a Third Party claim against insurer of the other party's vehicle. For comprehensive policy, you can also make aNo Fault Own Damage claim directly with your insurer where your NCD will not be forfeited

Q: What is No-Fault Own Damage (ODN) claim and the advantages to Policyholders?            A: Based on the revised PIAM guideline effective 1 June 2001, you can now make a No-Fault Own Damage (ODN) claim for damages to your vehicle in the event of an accident that is not your fault against your insurer instead of to the insurer of the other party's vehicle and your NCD will not be forfeited. Therefore, you will enjoy faster claims settlement service by dealing directly with your insurer.

Q : What is KFK-OD Claim?                                                                                                        A : KFK-OD stands for Knock-For-Knock Own Damage claim. In the event of a motor accident and if it is not the Insured's fault, one may make a KFK-OD claim on his/her own comprehensive insurance without the NCD (No Claim Discount) being forfeited (subject to the terms and conditions stated in the KFK Claim Declaration Form) and hence, speeding up the process of repairing your own vehicle.

Q: What is the difference between Knock For Knock (KFK) claim & ODN claim?                     A: KFK Claim is a claim made by an insured against the third party insurers for the cost of repairs whereas for ODN, insured can claim the cost of repairs under his own comprehensive policy without affecting the NCD

Q: How do I make an ODN Claim?                                                                                            A:You need to submit the following documents, in addition to the required supporting documents for Own Damage Claim:                                                                                                                (a) A signed declaration letter to confirm No Fault Own Damage with the details of the insurers of the third party vehicle at fault. This is to be evidenced by the Road Transport Department (JPJ) extracts of the same AND                                                                                                                            (b) The police findings, police sketch plan & keys & the Third Party police report as proof                 However, ODN claim does not compensate for uninsured losses such loss of use, where you can file for such claim via a third party claim against the other party's insurer.

Q: Can I make an ODN claim if my car was knocked by an unknown vehicle while being parked in a car park?                                                                                                                A:No, you cannot make an ODN claim since you don't know the insurer of the third party vehicle and the registration number.

Q: Can I make ODN claim if I'm driving or the other party is driving a taxi, bus or a hire & reward vehicle?                                                                                                                       A: No, Taxi / bus / hire & reward vehicles are not covered within the scope of ODN claims as per the revised KFK Agreement.

Q: Do I have to repair my car in a workshop approved by Insurer?                                          A:  Yes, as stated in the policy conditions, you are required to send/tow your damaged car to a PIAM (Persatuan Insuran Am Malaysia) approved panel of workshops. For your convenience, you can also go to the Panel Workshop listing by the Insurer where the workshop personel will help to submit the claims for you.

Q: Why is betterment applied to my claim when in actual fact, I am entitled for full compensation? What is betterment?                                                                                         A:  Betterment is a scale (%) imposed to the vehicle aged above 5 years when new franchise parts are used during an accident repair that was paid by the insurance company. The insured will have to bear for the betterment charges because his/her vehicle's old damaged parts were replaced with new franchise parts since the motor insurance policy only indemnifies the insured's vehicle in the condition just before the accident. The application of betterment is at the discretion of the respective insurance companies based on the Scale of Betterment approved by Bank Negara Malaysia.

Q: I was involved in a chain collision with 4 cars as shown below. Who should I claim the damages to my vehicle from?                                                                                                                                                      A: Based on Bank Negara guidelines effective from 3 January 2000, in the event of a chain collision, which involves 3 or more vehicles, Car 4 shall be responsible for the damages to Car 3, while Car 3 is responsible for Car 2, and Car 2 is responsible for Car 1. In short, the vehicle behind shall be responsible for the damage to the vehicle immediately in front.                                                          If and should the collision of your vehicle and to the vehicle immediately in front is caused by the impact of the vehicle behind you, then the Third Party claimed against you by the vehicle in front will not affect your NCD.                                                                                                                              The above is not applicable if collision involved :-                                                                             (1) Parked vehicles                                                                                                                         (2) Where the front vehicle makes a "U" turn                                                                                     (3) Vehicles not travelling in the same direction; or                                                                           (4) Foreign registered vehicles

THEFT CLAIM

My vehicle was stolen. How do I make a theft claim?                                                                (1) Remain calm and ascertain whether your vehicle has actually been stolen. Eliminate the probability that your vehicle has not been towed away or seized by the local authorities for errant parking/ traffic obstruction or repossessed by your hire purchase owner or finance company.              (2) Immediately lodge a police report at the nearest police station with details such as date and time when your car was parked, date & time of loss being discovered, exact location of loss, vehicle's particulars (registration no., make & model, chassis & engine no (if available). It is best for you to bring along a copy of the vehicle's Registration Card for easy referencing and action by the police.             (3) Collect the Claim form and notify your insurer or your servicing agent within 14 days.                    (4) Fill up the Claim form attached with the relevant documents to the insurer within 14 days.

Q: How much does my Comprehensive motor policy compensate me for my stolen vehicle? What happens if I under/over insure my vehicle?                                                                    A:  The theft claim will be settled based on the Market Value of the vehicle at the time of loss or the Sum Insured, whichever is lower. As such, if the vehicle is under-insured, the settlement will be based on the Sum Insured, likewise if the vehicle is over-insured, the settlement will then depend on the prevailing Market Value.

Q: Why does a theft claim takes 6 months or more to process?                                                A: The period given by Bank Negara Malaysia (in its guidelines on settlement of vehicle theft) is stipulated to be processed within 6 months. However, in most cases, claims are settled as soon as the theft investigation is finalised without any irregularities being detected and all documents required for claims processing with payment have been processed.

Q: I am not satisfied with the amount has offered to compensate the loss of my vehicle as I feel the amount offered is lower than the market value. How do I appeal?                             A: If you are not satisfied with the claim offer amount, you can always file an appeal letter to the Claims Manager with relevant documentation justifying the vehicle's Market Value (at time of loss) or the supposed settlement amount (e.g. newspaper clippings, classifieds, written quotations or valuation from reputable car dealers). Your appeal however, will be subjected to further deliberation.

Q: What should I do if the police inform me that my stolen vehicle has been found?               A: You are to immediately channel the said recovery information to the Insurer for further advice on appropriate action. If the vehicle is recovered before the theft claim is settled, you will have options to either:                                                                                                                                            (1) To withdraw the claim (if the vehicle is recovered in good condition)                                                (2) To withdraw the claim and undertake the repair at his own expense (if the vehicle sustained minor damage and the insured wishes to retain his/her NCD entitlement)                                                      (3) To withdraw the Theft Claim but pursue with Own Damage Claim (if vehicle recovered sustained extensive damage or has missing parts)

Q: If Insurer has already compensated me for my stolen vehicle and the police found my vehicle later on, can I get my car back? What should I do?                                                     A: In the event that a theft claim has been settled or paid by Insurer, Insurer will automatically have legal interest or ownership claim to the subject vehicle irrespective of the theft recovery aspect.           If you receive police information pertaining to the recovery of your stolen vehicle after we have settled your claim, please channel the said information immediately to any of Insurer to physically recover the said vehicle.                                                                                                                                 If you wish to get back your recovered vehicle after the Insurer has settled your claim, you may officially write in to our Wreck Tender Committee indicating the amount you wish to offer for the committee's consideration. However, this is only applicable when the vehicle is released by police without any condition or court bond.                                                                                               Under normal circumstances, all theft-recovered vehicles will be listed for wreck tender exercises with privileges given to Insurer staff and then to other parties or panel workshops by the said committee.

WINDSCREEN CLAIM

Q: My car's windscreen was damaged. How do I make a windscreen claim?                             A: You should first check your motor policy if you have purchased a separate windscreen damage cover. If this additional cover is included in your policy, you can either claim for repair or replacement of your damaged windscreen without affecting your NCD. Please refer to our Motor Claims section for details on windscreen claim.