Bank Negara Malaysia (BNM) has moved to cut delays and disputes in motor insurance claims, confirming that motorists who are not at fault can claim directly from their own insurer without losing their No-Claim Discount (NCD) via the Own Damage Knock-for-Knock (OD-KFK) route.
The change applies to policyholders with comprehensive cover and is meant to eliminate out-of-pocket repairs and long waits for third-party insurers to respond.
BNM Consumer and Market Conduct Department deputy director Lailatul Akma Mohd Shukor said in a BFM podcast that OD-KFK requires a police report and supporting documents, after which the policyholder’s insurer manages repairs and later settles with the at-fault party’s insurer.
However, OD-KFK does not apply in cases involving buses or taxis or where injuries are sustained; such claims must still be lodged against the at-fault party’s insurer.
The central bank reiterated that eligibility sits squarely with comprehensive policyholders.
Beyond eligibility, BNM is tightening service standards and shortening timelines under a revised Claims Settlement Practices Policy Document.
Reported improvements include around 20 working days quicker turnaround for own-damage cases, and up to 80 working days faster for theft or third-party property damage claims, depending on scenario and report.
While outlets differ on which claim type gets the 80-day cut, all agree the overall cycle time will be roughly halved.
Digitalisation is central to the overhaul.
A new Digital Roadside Assistance (DRA) channel, which is accessible via insurers’ apps or websites, lets motorists request authorised towing, locate workshops and upload claim documents 24/7, reducing exposure to unauthorised operators and speeding submissions.
BNM said insurers would publish a claims service charter so customers can track promised response times and hold providers to account if standards slip.
For unresolved disputes, motorists can escalate cases to the Financial Ombudsman Service, which offers independent, free resolution.
