KUALA LUMPUR, Aug 30 — Motorists who are not at fault in road accidents will soon be able to claim directly from their own insurers without losing their No-Claim Discount (NCD), The Star reported today.
According to Bank Negara Malaysia (BNM) Consumer and Market Conduct Department deputy director Lailatul Akma Mohd Shukor, the requirement is part of a revised motor insurance claims policy.
She said the “Own Damage Knock-for-Knock” (OD-KFK) option allows policyholders with comprehensive motor coverage to repair their vehicles through their own insurers rather than waiting for the at-fault party’s insurer to process claims.
“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, as quoted by the national daily.
However, Lailatul noted that the OD-KFK option does not apply if the accident involves a bus or taxi, or if injuries are sustained, in which case claims must still be filed with the at-fault party’s insurer.
She added that the new framework places stronger emphasis on efficiency.
“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 said, according to The Star.
Another key feature is the Digital Roadside Assistance service, which enables motorists to request authorised tow trucks, find nearby workshops and submit documents via 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, as reported by The Star.
For unresolved cases, Lailatul said policyholders may approach the Financial Ombudsman Service (FOS), an independent body providing 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.
