A new insurance option promises to make things simpler for those who aren’t at fault in collisions.
Malaysian motorists who are not at fault in road accidents can now repair their vehicles directly through their own insurers — without losing their No Claim Discount (NCD). This reform, introduced by Bank Negara Malaysia (BNM), aims to simplify the motor insurance claims process and speed up settlements.
The initiative, known as the Own Damage Knock-for-Knock (OD-KFK) option, applies to drivers with comprehensive motor insurance policies. Instead of waiting for the third-party insurer to process claims, motorists can immediately claim repairs through their own insurance company, provided the police report confirms they were not at fault.
BNM Consumer and Market Conduct Department deputy director Lailatul Akma Mohd Shukor explained that many Malaysians are still unaware of this option. “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.
Faster, Fairer, and More Transparent Claims
Under the revised policy, BNM has imposed stricter timelines on insurers to reduce delays. The average processing time for own damage claims has been cut by 20 working days, while third-party property damage claims are now expected to be completed up to 80 working days faster.
The central bank estimates these changes will halve the overall settlement period for most claims, ensuring motorists enjoy fairer, faster, and more transparent outcomes.
Digital Roadside Assistance
Another major improvement is the introduction of Digital Roadside Assistance. Motorists can now request authorised tow trucks, locate nearby workshops, and submit documents directly via their insurer’s mobile app or website. This feature also covers breakdowns and flat tyres, reducing the need to rely on unauthorised tow operators.
Stronger Consumer Protections
Insurers and takaful operators are now required to publish a Motor Customer Service Charter, clearly stating service standards and turnaround times. Complaints must be addressed within 14 working days, and from 1 April 2026, this timeline will be shortened to five working days. Motorists who remain dissatisfied can escalate disputes to the Financial Ombudsman Service (FOS) at no cost.
