Thing to Know-Motor Insurance- General

When you are involved in an accident, you may either make an own damage claim or a third party claim:

Own damage claim

This refers to making a claim on your own insurance policy.You will lose your NCD entitlement

When notifying your insurance company of the accident, ask about the names of approved workshops near your location to send your vehicle for repair.

The workshop will commence repairs on your vehicle upon the approval of your insurance company.

Submit the fully completed Motor Accident Report Form together with all supporting document as soon as possible to your insurance company.

Upon completion of repairs, you will be informed by the workshop to collect your vehicle.



Third party claim

You may make a third party claim if you did not cause the accident you were involved in(i.e. someone rams into your car because they beat a red light). You will retain your NCD entitlement.

There are two ways of making a third party claim:

Submit the claim directly to the insurance company of the party at fault, or

If you have a comprehensive policy, submit the claim to your insurance company. You are encouraged to submit your claim to your own insurance policy for speedier claims.

Appoint a licensed adjuster to assess the loss. The workshop or the third party insurance company may advise you on this.

As the third party claimant, you must act to minimise your losses.

Submit the adjuster’s report and the fully completed Motor Accident Report Form together with all supporting documents as soon as possible.


You are eligible to claim from the third party insurance company for ‘loss of use’ and compensation of excess. For the ‘loss of use’ of your vehicle under repair, this is based on the adjuster’s recommendation on the number of days required for your car to be repaired. Insurance companies, at their own discretion, may allow an additional seven (7) working days for any unforeseen or unavoidable delay. A standard scale of daily ‘loss of use’ has been specified by PIAM as follows:


Private Use Vehicles
'Loss of Use' / Day

Up to 1500cc RM30
Above 1500cc – 2000cc RM40
Above 2000cc RM50



Commercial Vehicles


Up to 1 ton RM40
Above 1 ton – 2 tons RM60
Above 2 tons RM90
Trailer Lorries RM120
Buses (Private) RM90
Other Buses (Stage/Express) RM180
Taxi/Hire and Drive RM40

Motorcycles


Up to 250cc RM10
Above 250cc RM15


Or, you may claim the cost of renting a replacement vehicle of equivalent type and capacity for the recommended number of days of ‘loss of use’ as evidenced by a receipt from a licensed car rental company.

Theft claims

In terms of a stolen vehicle, there are a few procedures that must be followed:


You must submit a detailed report about the stolen vehicle, including a police report.

After submitting the claim form, you must cooperate fully with your insurance company or its representative during the course of investigation of the theft claim.

In view that the police and your insurance company will require time to investigate your claim, you will receive the offer of settlement from your insurance company within six months from the theft notification or upon completion of police investigation, whichever is earlier.

by : sseven risk consultancy wakil insurance AIG