“OD-KFK Meaning” Explained, But Like… You Actually Get It
Own Damage, Knock-for-Knock (OD-KFK) is a type of motor insurance you can claim from your own car insurer if the accident you were in is not your fault. And you get to keep your No Claim Discount (NCD) streak.
So… who can claim OD-KFK?
Imagine that, as you open this article, this is your scenario:
You’re looking for what insurance to claim because you’ve just kena-ed a car crash. There are no commercial vehicles like taxis, or buses, or hired cars involved and no one is hurt. The crash is NOT your fault, as confirmed by the police report, and also, thankfully, you have a comprehensive car insurance policy.
If your accident ticks all these boxes, you have two options for claiming insurance: File under Third-Party Property Damage (TPPD) or Own Damage, Knock-for-Knock (OD-KFK). Most people will now tell you to claim OD-KFK, especially after recent updates to motor insurance claims, because you won’t lose your No Claim Discount (NCD).
And if this sounds like gamer code, here’re your answers.
Who, How, What is OD- KFK?
It stands for Own Damage, Knock-for-Knock. It is a type of insurance claim you can make when your own car is damaged by someone else (we just went through who can claim this in the introduction).
Now, it’s important that these 2 acronyms – OD and KFK – go together because an Own Damage insurance claim means that your car was damaged because you yourself were careless with your car, ie. you hit the pole, scratched the curb, you get the idea. It’s your Own fault your car got Damaged. This is a completely different insurance claim from…
The Own Damage, Knock-for-Knock claim, which means that in the car accident, it was the other guy’s fault, but you can claim insurance to fix your car from your own insurer for this accident.
Just a note, OD-KFK seems to be loosely interchangeable with just ‘Knock-For-Knock’ when it comes to personal insurance claims, but the Knock-for-Knock Agreement is an agreement that was signed by every single insurance and takaful companies in Malaysia (all that powah!), that allowed the OD-KFK to happen.
Then what does NCD mean?
Recently, there were updates nationally to motor insurance claims policies which said that now, when you claim OD-KFK, you get to keep your NCD. Why is this so important?
Because, NCD is literally a “No Claim Discount” –a Discount on your motor insurance premium IF you have No Claims made against you or by you in the previous policy year. That’s if your insurance covers you longer than 1 year. TLDR: a discount on your car insurance if you didn’t kena any accidents last year (cue the kiam-siap Asian in you, ARISE!).
BTW it’s accumulated. Yes, you get a bigger discount the more years you are claim-free. Think of it like a Duo-Lingo streak, but in actual money you pay for your comprehensive car insurance. Once you break the streak when you kena an insurance claim (whether by your own self or when someone else claims it against you), then you lose the discount.
Unless you go for a OD-KFK. Then you can make your claims AND keep your discount AND keep your discount streak. Isn’t that gnarly? It’s basically a get 1, get-off 1 free pass! Thank you, Bank Negara.
Other Stuff Adults Need To Know About The OD-KFK Claim
The OD-KFK is generally the better option over Third-Party Property Damage (TPPD) because you deal straight with your own insurance company, not the other guy’s insurers. You also don’t need to get your own insurance adjuster, aka someone to check and evaluate the damages and compensation of the accident.
That means that on your side, your filing and claims are done by just you and your insurer, no need to bring anyone else in. That’s why it’s faster, simpler, and more convenient than a TPPD.
So now that you know which policy to claim, go forth and get your car fixed!
