Making A Car Insurance Claim in An Accident
There are two types of insurance claims that you could make in the event of an accident. Depending on the nature of the accident, the claims involved are either 1) own damage claim or 2) third-party claim.
What Is Own Damage Claim?
Own damage claim means making a claim against your own insurance policy (if you are insured under a comprehensive cover). The downside to this is that you may lose your no-claim-discount (NCD) entitlement.
In the event of an accident, you are advised to notify your insurer as soon as you can. When you report the accident to your insurer, enquire also about the names and locations of the panel workshops to send your vehicle for repair. Note that prior to sending your car to a panel workshop, you must complete a Motor Accident Report Form, which will be submitted along with all other necessary documents to your insurer.
The panel workshop typically only starts the repair of your car after your insurer has received the necessary documents from you. When the repair is completed, you will be informed to collect your vehicle.
What Is Third-Party Claim?
If you are not at fault in the event of an accident, you are entitled to a third-party claim. In this case, you can hold on to your NCD privilege.
There are two ways to go about making a third-party claim. As both parties have their own respective insurance companies, you could either 1) submit a claim directly to the insurance company of the party at fault, or if you are insured under a comprehensive cover, you could 2) submit the claim directly to your own insurance company.
If you wish to expedite your claims, then submitting directly to your own insurer may be a better option.
As for the third party claimant, it is in your interest to minimise the loss involved. Here are some post-accident tips that could help you reduce the cost of damage:
- Appoint a licensed adjuster to assess the loss. Your panel workshop and insurance company would normally advise you on taking this step.
- Submit to your insurer the Motor Accident Report Form as well as the adjuster’s report together with all other necessary documents as soon as possible.
- You have the right to claim from the third-party insurance company for Compensation for the Actual Repair Time (CART). CART is essentially a compensation paid to you by the third party insurance company for the loss of use of your car. CART is normally estimated based on the number of days required to have your car fixed. Insurance companies may permit an additional seven working days for any unforeseen circumstances that might cause a delay. A standard gauge of daily CART has been outlined by the General Insurance Association of Malaysia (PIAM):
Apart from claiming the fee as shown in the chart above, there are other options to choose from as well. For example, you could also claim the cost of hiring a replacement car that is of the same category and capacity for the recommended number of days of actual repair. The receipt from the car rental company must however be provided as evidence.
Non Accident Claims – Theft Claims
For those insured under a third party, fire and theft cover as well as a comprehensive cover, you may claim a compensation in the event your vehicle is stolen.
Upon submitting a claims form for theft, you must continue to liaise closely with your insurance firm or its representative during the course of police investigation.
As it could take a long time for both the police and insurer to investigate the claim you made, you may only receive the offer of settlement from your insurance company six months from the theft notification, or upon completion of the police investigation, whichever one is earlier.
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