KUALA LUMPUR: Motorists who are not at fault in road accidents can now claim directly from their own insurer without losing their No-Claim Discount (NCD).
Bank Negara Malaysia (BNM) Consumer and Market Conduct Department deputy director Lailatul Akma Mohd Shukor said this new requirement is part of a revised motor insurance claims policy.
She said the “Own Damage Knock-for-Knock” (OD-KFK) option allows drivers with comprehensive motor insurance to repair their vehicles through their own insurer instead of waiting for the at-fault party’s insurer.
“This speeds up the process, removes out-of-pocket expenses, and preserves the driver’s NCD.
To use the OD-KFK, policyholders simply need to submit a police report and the necessary documents, after which the insurer will handle the claim,” she said in a podcast.
Lailatul Akma said the option does not apply if the accident involves a bus or taxi, or if there are injuries, in which case claims must be made against the at-fault party’s insurer.
She said one of the key improvements is quicker turnaround times, which set clearer expectations for insurers while simplifying the process for policyholders.
“Consumers will now benefit from fair, transparent, and timely outcomes.
Under the revised policy, the average processing time for own damage claims has been shortened by 20 working days, while third-party property damage claims can be completed up to 80 working days sooner.
We want to make the process simpler and more user-friendly after years of motorists complaining about red tape and long waits,” she added.
She said BNM has also rolled out Digital Roadside Assistance, which enables policyholders to request authorised tow trucks, locate nearby workshops, and submit documents through their insurers’ mobile apps or websites.
“No more confusion about who to call or the risk of dealing with unauthorised tow trucks. Everything from requesting help to sending in documents can be done through the app 24/7, even if your car breaks down or has a flat tyre,” she said.
She added that for unresolved cases, policyholders can turn to the Financial Ombudsman Service (FOS), an independent body that provides free dispute resolution.
“These reforms are meant to make the motor claims process fairer, faster, and more transparent, while strengthening public confidence in the system,” she said.
