#WhatIWishIKnew - The Ultimate Guide On How To File An Auto Insurance Claim In Malaysia

CompareHero.my Team

CompareHero.my Team

Last updated 05 May, 2021

If you get involved in an accident that causes damage to your car, there are several important steps you must follow as part of the insurance claim procedure. In this article, we provide a complete guide on how to make a car insurance claim in Malaysia. Read below to find out!

Accidents can happen to anyone, even the most careful among us. But what happens after you get into a car accident? You’ll have to make a claim, and for many, this can be a confusing process.

In fact, it's this process where consumers often complain a lot about, especially when there are delays in their insurance claims, according to Persatuan Insurans Am Malaysia (PIAM) aka the General Insurance Association of Malaysia.

More often than not, the stumbling blocks in the claim process, PIAM states, are due to insufficient information given on the claim form, lack of supporting documentation or the lack of understanding on what the policies actually cover.

Therefore, knowing what to after an accident would greatly alleviate the anxiety that comes with the incident as well as ensure a speedy claims process.

Here’s a guide on how to make a claim from your car insurance if your car is stolen, involved in an accident, or suffered damages caused by unfortunate events such as a flood.

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But first - what can you claim?

When making an accident claim in Malaysia, there are generally two types that people often make: Own Damage claim and a Third Party claim.

The types of compensation and your eligibility to apply for a claim will depend on the type of car insurance coverage and the nature of the accident or scenario you get in.

For example, if you opted for extra coverage, then you are eligible to claim for add-ons to your insurance, such as windscreen coverage, damage due to flooding and more.

But across the board, damages which you can claim for are:

Special damages
These are claims for specific expenses like transport, repairs to vehicles, getting another vehicle or medical expenses as a result of the accident. Special damages deal with specific monetary expenses that you have to incur as a result of the accident.

General damages
From what we found, general damages represent the types of damages that can’t easily be assigned a monetary value, such as pain and suffering, loss of consortium and emotional trauma.

In this instance, there is no evidence of loss, be it bills or receipts, of a specific Ringgit amount, but they are still considered losses for which the plaintiff deserves compensation nonetheless.

For instance, if you and/or a passenger in your car was injured in the accident, you may claim compensation for the suffering and pain incurred from injuries sustained. You may do so by claiming from the insurer of the other vehicle that caused the accident.

But, the other vehicle’s insurance will only pay out compensation to you if the other driver is found to be at fault for causing the accident. If you are partially responsible, you and your passenger will receive a partial compensation.

See also: How Does Car Insurance Work in Malaysia?

Let’s break down the different possible scenarios and how you can approach it:

Scenario 1: Theft of your vehicle

Certain circumstances will not make you eligible for a claim such as willingly handing over your car to someone else, resulting in the car being stolen.

For example, if you send your car to the car wash or handed it over to a car jockey and it gets stolen, it will be considered as an act of negligence on your part as the car owner.

Type of policy
Comprehensive policy Third Party, Fire and Theft policy Third party policy
You can make a Theft claim against your own insurer/ takaful operator You can make a Theft or Fire claim against your own insurer Not eligible to claim

Scenario 2: Damage to your vehicle due to road accident

There are two ways to claim for damages if your vehicle was involved in an accident:

1. Claim from your insurance company

When claiming from your insurance company, you will have to claim under Own Damage (OD) Claim or Own Damage Knock for Knock claim. Here’s what you can do:

  1. Lodge a police report within 24 hours of the accident. If you lodged a report after 24 hours have passed, you can be fined RM300.
  2. Then, inform your insurance of the accident. After that, make sure to send your car to a panel workshop of the insurance.
  3. After that, you will have to fill up the claim forms and submit back to your insurer.
  4. An insurance adjuster will then be appointed to access the damage and cost to fix your car, and then the panel workshop will proceed to work on your car.

It’s important to remember that when you claim from your insurance company, you will lose your No Claim Discount (NCD) entitlement.

You should also check your insurance policy and look at the part where it states “excess.” This is the amount of loss you have to bear before your insurance company will pay for the balance of your claim.

For example, if your car insurance excess is RM200, you will have to pay the first RM200 of any claim you make. You will not be entitled to claim for an accident that results in damages below RM200. Excesses help insurers reduce the number of small claims made.

There are two types of “excess”:

i) ‘Compulsory Excess’ of RM400

You have to bear the cost of RM400 every time you make a claim if, during the accident, your car was driven by a person:

  • under 21 years old
  • holder of an L driving license
  • holder of a P driving licence
  • named in your car insurance, but is less than 21 years old, and /or holder of L license, and/or holder of P license

ii) ‘Other Excess’ is an amount applicable at the discretion of the insurance company

2. Claim from the other party’s insurance company

When you claim from the other party’s insurance company in the event of an accident, this is known as third-party claim.

Usually, this is applicable if the accident was the other person’s fault. The steps to claim are as below:

  1. Make a police report within 24 hours of the accident to enable you to claim from the other party’s insurance company.
  2. Send your vehicle to the panel workshop of the other party’s insurance company.
  3. Get a vehicle Independent Licensed Adjuster on your own or through a workshop to help evaluate the total cost of the damage, and the loss of use, also known as Compensation For Assessed Repair Time (CART). This is to get compensation for not having a car over the period your vehicle is under repair.
  4. You will have to pay for the damage first. Then send these documents to the other party’s insurance company:
  • Original copy of the police report made by you
  • Police investigation result
  • Copy of your NRIC
  • Copy of your driver’s license
  • Car registration card
  • Adjuster report including bill of repair cost for your car (or your damaged property)
  • Photo (if any) of the damaged car
Type of policy
Comprehensive policy Third Party, Fire and Theft policy Third party policy
  • If other person caused the accident, make a Third Party Property Damage claim (TPPD) against the other person’s insurer/ takaful operator
  • If you caused the accident, make an Own Damage claim against your own insurer/ takaful operator
Make a Third Party Property Damage claim (TPPD) against the other person’s insurer/ takaful operator Make a Third Party Property Damage claim (TPPD) against the other person’s insurer/ takaful operator

There are pros and cons to both types of claims. If you claim from your own insurance, you will lose the NCD entitlement.

If the situation allows you to claim from the third party’s insurance, and you choose to do so, it can take a long time. This is because it involves a longer process compared to if you were to claim from your own insurance.

On top of that, you may find that the amount offered by the third party’s insurance is inadequate. In that case, you should engage a lawyer.

Your lawyer will ask you to sign a warrant to act. This is a document appointing him or her as your lawyer, to authorise the lawyer to act on your behalf. Your lawyer will:

  • Take down a full statement from you and examine all the documents that you have, consider the evidence, and explain to you the types and the quantum of claims that you may be granted.
  • Write letters to the police station to get copies of the police reports as well as the sketch map of the accident site.
  • If you or your passenger was injured, and you have not obtained the medical reports, the lawyer will write to the hospital for the medical reports.
  • Write to the insurance company concerned for the compensation.
  • If no adequate compensation can be obtained, the lawyer will file a civil suit for you. But if both sides agree for a settlement, then you don’t have to go to court.

If you cannot reach an agreement with the other party, the accident case will be brought to court. The court will have to decide liability, which means deciding who is responsible for causing the accident. The court will also decide how much the injured person (if any) should receive as compensation. The person who is found to be responsible for the accident will be 100% liable for the compensation.

But there may also be instances when another party is also partly responsible for the accident. In such situations, the court will assess the degree of the responsibility in percentage terms in causing the accident.

All in all, each party that is found to be partially responsible for the accident will then have to pay compensation according to the percentage terms decided by the court.

Scenario 3: Compensation for Assessed Repair Time (CART) (Compensation awarded only to drivers found not responsible for accident)

Accidents can be costly, and unforeseen expenses may arise from it such as paying for alternative modes of transportation when your vehicle is being repaired.

If you were to add CART to your coverage, then you get additional compensation for loss of use of your vehicle based on the estimated repair time as assessed by an appointed loss adjuster (excluding the period the vehicle is laid up in the workshop).

For example, Tom insured his vehicle with a provider and purchased the Compensation for Assessed Repair Time (CART) add-on. He opts for a 14-day plan at RM100 per day. So his total sum insured is RM1,400.

He then gets into an accident, and based on the loss adjuster’s assessment, it would take 3 days to repair his vehicle. Therefore, Tom will be compensated with RM300 for the loss of use of his vehicle.

Type of policy
Comprehensive policy Third Party, Fire and Theft policy Third party policy
  • Make a loss of use claim against the other person’s insurer/ takaful operator OR make a claim with your own insurer if you have purchased a CART add-on cover.

Scenario 4: If you are a pedestrian or owner of a non-vehicular property that was involved in an accident

These accidents usually occur when pedestrians attempt to cross highways. Similarly, non-vehicular pedestrian accidents also occur annually due to poor maintenance, sidewalk or parking lot defects, and construction or other debris on walkways.

If you happen to be in such an unfortunate situation, you can make a Third Party Property Damage claim (TPPD) against the other person’s insurer/ takaful operator.

Scenario 5: Bodily injury or death, but this list is not exhaustive:

This involves all claims for injuries or fatalities by the third party(ies) as a result of a motor vehicle accident.

In this scenario, the third party sustains injuries or leaves a dependent(s) due to a deceased third party(ies).

Other instances can also result in a claim:

  1. Pain, suffering and loss of amenities from injury sustained
  2. Medical expenses / nursing costs
  3. Loss of earnings / loss of future earnings / earning capacity.
  4. Loss of dependency
  5. Funeral expenses
  6. Bereavement

If a third party and their passengers are injured or if there are any fatalities due to your own negligence, then they may pursue a Motor Bodily Injury claim against you.

However, if the accident was caused by any other third party vehicle(s), you are required to submit your claim directly against the third party insurer concerned.

In general, what should you do if your car is involved in an accident?

Getting involved in a motor accident can be scary, but try not to panic, and rather follow the following steps as suggested by Bank Negara Malaysia:

  1. Be calm, polite and courteous. DO NOT admit liability or offer any settlement or payment.
  2. Jot down as much of the following information. This is necessary for the Accident Notification Form (Form A) when making a claim:
  • The personal particulars of the driver(s) involved in the road accident - name(s), IC number(s), address(es), driving licence number(s) and telephone contact(s) (if possible).
  • The name of the insurer of the other vehicle(s).
  • Make/model and registration number(s) of the other vehicle(s) involved in the road accident.
  • Registration number of tow truck(s) (if any).
  1. Make a simple sketch or diagram of the accident scene. Keep it because you will need it to fill it in your Form A, which will then be used to lodge a police report later on.
  2. Snap photos and note down the extent of the damage(s) to the vehicles/property involved (if the situation permits).
  3. Immediately call either your insurer’s roadside assistance service (if provided) or Accident Assist for assistance.
  • Accident Assist will ask you some simple questions about the accident, and if necessary, help arrange for a panel tow truck to assist you and to tow your vehicle to the nearest panel workshop.
  • Accident Assist will be able to also advise you on the nearest panel workshop which you may go to in order to repair your vehicle.

If you don’t follow step 5, then alternatively, you should also fill in Form A and submit it to either your own insurer and/or Persatuan Insurans Am Malaysia (PIAM) or Malaysian Takaful Association (MTA) within seven days of the date of the road accident.

PIAM and MTA may be contacted at:

Persatuan Insurans Am Malaysia 3rd Floor, Wisma PIAM 150, Jalan Tun Sambanthan 50470 Kuala Lumpur Tel No.: 03-22747395 Fax No.: 03-22745910 Email: piam_sec@piam.org.my

Malaysian Takaful Association 21st, Menara Takaful Malaysia, No. 4, Jalan Sultan Sulaiman, 50000 Kuala Lumpur Tel No.: 03-20318160 Fax No.: 03-20318170 Email: mtasecretariat@malaysiantakaful. com.my

  1. Make a police report of the road accident. You are required by law to lodge a police report as soon as practicable, and in any case within 24 hours of a road accident or theft of your vehicle.
  2. Cooperate with the investigator/loss adjuster appointed by the insurer to undertake an independent:
  • Assessment of the repairs recommended by the panel workshop.
  • Investigation of the theft of your vehicle.

You can escalate disputes if you aren’t happy

If you are not satisfied with the way your claim is being handled and how the issue on hand is not resolved - even after you have written to your insurance company branch manager and to its head office - you can refer your complaint to PIAM Information Centre or Ombudsman for Financial Services here.

What do you need to make a motor claim?

In order to make a claim, you must compile the following documents as soon as possible and submit them to the insurer (refer to the table below) within the stipulated time frame:

Own Damage, No-Fault Own Damage and Theft claims:

  • Within 7 days of the date of accident/loss if you are not physically disabled or hospitalized following the event.
  • Within 30 days or as soon as practicable if you are physically disabled or hospitalized as a result of the event.

Other claims: - As soon as practicable

However, claimants may subsequently be requested by the insurer to furnish additional documentation

Documents to be submitted Type of Claim
Submit to OWN insurer Submit to OTHER party’s insurer
Own Damage and No-Fault Own Damage Theft claim Third Party Property Damage (TPPD) claim Third Party Bodily Injury or Death (TPBID) claim
Claim Form (provided by insurers)    
Motor Bodily Injury/Death claims cover letter (refer to Letter B)      
Original copy of police reports        
• Made by you directly after accident
• Police letter informing which party is compounded for road traffic offence  
Copy of NRIC of driver
Copy of driving licence of:        
• driver    
• policyholder    
Vehicle registration card  
Bill of repair costs of your own vehicle or property    
Any document in evidence of your income      
Photos of (if possible):        
• accident scene    
• damages to vehicle at accident scene    
• injuries suffered      
If injured (TPBI claim):
Initial medical report (specialist reports may be submitted later)*      
Bill of initial medical treatment received      
If death (fatal claim):
A copy of death certificate      
Bill of funeral expenses      
Copy of NRIC of dependents      

The CompareHero.my team is comprised of many talented individuals, sharing their knowledge, experiences and research to help others make better financial decisions.


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