Crash wasn’t your fault? BNM says knock‑for‑knock keeps NCD safe, repairs rolling without insurer drama
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KUALA LUMPUR, May 28 — When a motor accident occurs, many drivers assume they must pursue the other party’s insurer for compensation — a process that can become drawn out while liability and fault are determined.
But did you know that drivers with comprehensive motor insurance do not necessarily have to deal with the other party’s insurer after an accident, as there is an alternative option that can help speed things up?
This is where the Own-Damage Knock-for-Knock (OD-KfK) claim comes in, allowing eligible motorists who are not at fault to claim directly from their own insurance company instead of waiting for the at-fault party’s insurer to process the claim.
Simply put, the OD-KfK claim reduces delays, simplifies documentation and allows repairs to begin sooner, while insurers handle recovery between themselves later.
Benefits of opting for OD-KfK include retaining your No-Claims Discount (NCD), faster approval for accident repairs due to fewer parties involved and using certified workshops appointed by insurers — making the entire claims and repair process more straightforward and efficient.
“On the flip side, when you are claiming against the other party’s insurer, you’d have to pay upfront for the repairers’ and adjusters’ fees which involve a longer process to obtain approval and reimbursement.
“One thing that we hope people will be aware of is that if you have a comprehensive policy, you should opt for OD-KfK.
“If you go after the party at-fault party’s insurer, that’s all fine and good but leakages and fraud tend to happen there because it’s somewhat out of our control,” a Bank Negara Malaysia (BNM) officer explained during a recent media workshop on Consumer Protection and Fair Market Reforms at Sasana Kijang here.
Still, policyholders should note the exceptions where OD-KfK does not apply, such as when the accident involves hire-and-reward vehicles (like buses or taxis), when there are third-party injuries, when foreign-registered vehicles are involved or when a vehicle is uninsured.
Per BNM’s Claims Settlement Practices Policy Document, general insurers and takaful operators (GITO) must offer policyholders the option to submit an OD-KfK claim to expedite claims processing upon receiving accident notification.
They must also explain that the policyholder’s NCD will not be affected if an OD-KfK is submitted and advise on the benefits of submitting one.
Conversely, policyholders can also notify their insurer of their intention to make an OD-KfK claim within seven working days from the date of the accident, along with the relevant documents.
Under the aforementioned policy document, required supporting documents for OD-KfK claims are generally standardised — although certain GITO operators may request additional documents depending on their internal requirements.
The required standardised documents include a completed claim form, a certified copy of the police report, copies of the driver’s and policyholder’s identity card and driving licence, as well as the police investigation outcome report.
المصدر: Malay Mail