What you need to know when making a Third Party Claim
This is Part 5 of our Accident 101 Blog series. If you haven’t read the first four articles, you might want to check those out too.
1 – What to do at the scene of an accident
2 – Don’t fall victim to tow truck scam
4 – Making a car insurance claim
In our previous article, we covered the types of claims you can make against your own insurance company when you own a comprehensive cover. In this article, we will be talking about third party claim. It is often written short as TP or TP claim.
Who is this third party we are always talking about?
Third party simply means the other party that is involved in the accident. In Malaysia, every motorized vehicle is required to have at least a Third Party insurance policy. This policy covers you against third party claims for injuries or death caused to them during an accident. It also covers against losses or damages to the third party’s property caused by your vehicle.
Read more about the different types of policies here or watch the video below to understand the different types of policies and their coverage.
When can a Third Party claim be made?
A Third Party claim is filed when you have been in an accident that was not your fault where the other party needs to pay for your damages. The other party will have at least TP insurance to pay for:
- your bodily injury or death
- your property (if his car ran into your house/ shop) and car.
If the other party is at fault, you do not lose your No-Claim Discount (NCD), as you will not be filing against your policy.
What are your rights as a Third Party policy owner?
Let’s understand your rights if you own a TP policy and what kind of protection you are entitled to. We will look at two scenarios:
Scenario 1 – Accident was your fault
Example: You have accidentally knocked into someone else’s vehicle, causing damages to the car.
In such a case, the third party has the right to make a third party claim against you. Depending on the type of policy they have, they will either claim it from your insurance company directly or have their insurer act on their behalf.
You will need to go through the normal process of filing a police report and informing your insurer about the accident. You do not need to be concerned with the claim that the other party will be making against your insurance company. Your insurance company will be taking care of the matter and reach out to you if they needed more information.
Because the accident was your fault, you will need to pay for your own damages since you only own a TP policy. This is the limitation of a third party policy. It offers the most basic coverage which is why it costs the lowest compared to other policy types.
Scenario 2 – Accident was NOT your fault
Example: While at an intersection, a car rammed into yours from behind due to brake failures. Causing severe damages to your car and injuries to you.
Same as above, you will first need to file for a police report within 24 hours of the incident. You then need to inform your insurance company of the accident. However, as a third party policyholder, you cannot claim against your insurance company. You need to file a claim against the other person’s insurance company. Furthermore, you are also unable to have your insurance company act on your behalf to make the necessary claims against the third party’s insurance company.
Unlike a comprehensive motor policy, you can file a claim with your own insurance company and they will help you handle the claim. They will even start the repair for you without you having to pay for anything.
When you only have a TP policy, you will need to pay for your repair first and then file the TP claim against the other party. This can take weeks or months before you get your money back. The process is long as all documents need to be submitted by both parties and their insurance companies need to agree on the repair value.
So this is where it gets a little complicated for you. When you only have Third Party policy, it is especially important to have a great insurance agent. He will help you with all the steps needed to file a claim against the other person’s insurance company.
Finding out the insurance company of a third party
In the past, it was very difficult to find out the insurance company of the other party. But this is no longer the case today.
MyCarInfo offers a free service that allows the public to find the insurer of any vehicle. It is called i-Search.
Procedure in making a third party claim:
1) After the accident make a police report within 24 hours
2) Very important! Send your car to the panel workshop of the other parties insurance company
3) Appoint your own Independent Licensed Adjuster to evaluate the cost of the damages to your vehicle. The adjuster will create a report for you
- An independent licensed Loss Adjuster will prepare a report for you about the vehicle damages. Also the adjuster will estimate the time you are not able to use your vehicle. This is called “Loss of Use” or CART (Compensation for the Actual Repair Time) and you will get some money for it to cover that loss (see below). The report will take about seven to fourteen days and you will need to pay the cost upfront. You can hire a Loss Adjuster directly or through the workshop.
4) Send the documents to the Third Party Insurance Company
- While your car is being repaired, compile the following documents and send them via registered mail to the other party’s insurer. You will have to pay for the repair cost first, and seek reimbursement from the other party’s insurance company.
Documents needed:
- Original copy of the police report made by you
- The Keputusan report issued by the police department
- Copy of your NRIC
- Copy of your driver’s license
- Car registration card
- Adjuster report including bill of repair cost for your car (or your damaged property)
- Photo if any, of the damaged car (or property)
Optional 5) In very severe cases, where a lot of money is involved, it is advisable to hire a lawyer to act on your behalf in claiming from the TP insurance company.
Conclusion
These 4-5 steps describe the general procedure to file a third party claim in Malaysia. As of October 2016, Malaysia has over 31 insurance companies that sell motor insurance in Malaysia. Therefore it is best to call the TP insurance company to find out what documents are required, because some companies require more documents. A good insurance agent is especially important when you buy TP insurance. This is because you are on your own when an accident happens so having a reliable agent can help ease the trouble. The best insurance agents have plenty of experience and will guide you step by step to get your vehicles fixed and damages paid. If you are in search for an agent, check out our Insurance Agent Directory, where you can find the best agent near you. If you have questions or comments, please feel free to contact us under [email protected].
Loss of use or CART
You have the right to claim for Compensation for the Actual Repair Time (CART). Which means that the TP insurance company will compensate you for the loss of use of your car. It is estimated based on the number of days to have your car repaired. Below is the daily CART gauge outlined by Persatuan Insurans Am Malaysia (PIAM):
Important!! Loss of use is calculated based on the days where all documents are completely submitted and approval from insurer to repair is obtained. Not when the vehicle is stationary in workshop after accident.
Person
November 9, 2017 10:47 amLet’s say that I was involved in an accident, and I am not at fault. However, the third party driver does not have license at the time. Am I able to claim from the third party’s insurance?
Selina
November 9, 2017 2:16 pmHi. Does the car have a valid insurance? You can search here. Just need car registration number. https://www.mycarinfo.com.my/ISearch
Ema
January 22, 2018 10:24 amHye. I send my car to the workshop n he said if i cash pay the car. I will never get the 3rd party claim.. coz bfore do the 3rd party claim. The”neutral” party from workshop and insurance agent. So he said, if i ady do the cash repair, so neutral party cannot come n verify where actually the damages. So my claim would void n null.. is that true?.. if possible can u reply in my email?
Yana
January 25, 2018 12:17 amHi…i was involved in the accident and not my fault..the person hit back my car and cause my car total loss…so can i claim any loss of use from his insurance?or already include in my total loss voucher?if possible please reply in my email..thank you sir
Indra
March 23, 2018 9:24 amHi, just wanna ask, if third party insurance found out we were doing fraud for insurance claim n rejected our insurance claim, what will happen next? Tq.
luke
March 23, 2018 7:29 pmClaim will not be paid out. The insurance company can decide to lodge a police report. In public cases, the police will pick up the case themselves and investigate.
Chris
October 24, 2019 8:34 pmCan i claim t/p insurance if the driver don’t have a driving license?
Rae
October 28, 2019 6:10 amYou need to provide us with more details. Who does not have a driving license? You as the driver or the other party?
Khor
February 29, 2020 4:13 pmIf someone hit pedestrian, do the driver need to compensate or the pedestrian can claim this third party insurance from the driver?
Rae
March 6, 2020 8:15 pmYes, the pedestrian can claim from the third party insurance of the car. both parties would need to make a police report.
Stephanie
March 9, 2020 5:19 pmHi, if a car was hit from the back by a motorcyclist, the motorcyclist was injured while the car driver wasn’t but car damage, in this case, who are eligible to claiming the TP insurance?
ilham
May 6, 2020 6:45 pmwhat if my car got in accident but the driver(not me) of my car do not have license but not at fault. can i claim the insurance?
Rae
May 26, 2020 12:36 amYes, you can claim. You might not be able to get the full amount, because the driver does not have valid license.
li
July 19, 2020 8:38 pmCan i claim t/p insurance if the t/p driver don’t have a driving licence?
Rae
July 28, 2020 7:19 pmYes.
Ong yu jien
November 23, 2020 10:53 pmHi there, if the driver(cause of accident) of the accident is not the policy owner nor the owner of the car, the other party in the accident wanted to claim a TP claim, will the policy owner be informed or the driver alone will be informed?
luke
December 15, 2020 6:31 amThe policy owner will be informed.
Stan
November 30, 2020 8:11 pmA motorbike foodpanda rider smashed into me whilst I was cycling on a road where no cars are currently allowed to ride due to housing construction works. Whilst laying on the floor he looked at me and drove away. I was helped by other persons who passed. 10mins later he so he returned after he realised his number plate came off when he smashed into he. He also admitted to being on the hadnphone whilst navigating. I emailed Food panda and they don’t seem interested in any public liability however making their money on the roads of Malaysia .
I lodge a police report and the rider seems to ignore me after sending messages to enquire about his insurance.
What options to I have to get some money for medial expenses as my spine and pelvis is in alot of pain and already 1 week later.
Also around RM1000 to RM4000 damages on my racing bike.
luke
December 15, 2020 6:30 amWe are sorry to hear about your unfortunate event. We cannot provide legal advice so that it is best to ask your questions on this wepbage. https://forum.kamibantu.com.my/
bavitiran ragavan
March 14, 2021 6:48 pmHI,
MY BROTHER with his pillion involves in a bike accident 5years back(fault on car driver). it cost him hospitalized and the glass from the vehicle do many damages to his skin from face to toe. The car driver went to police station and paid the penalty. but my father appoint a lawyer for make a claim in respect of the bodily injuries sustained in the accident. as per that we have receive a phone call(not even any official letter) from the law firm and ask us to pay some legal fees so that they can transfer the claim amount.(legal fees around RM2k per person, Claim per person was around RM8k.)
thus my father passed away three years back, my brother and I have no idea of this case and the detail, totally forgotten, when we ask the lawyer for the details they refuse to give, and they used to call and talk instead of any black and white, can advise me so i entitle to see the letter from the insurance company about the claim amount? is that normal procedure a lawyer deliver the claim to client?
Thanks in advance
Justine
March 16, 2021 10:10 amYou can contact the insurance company directly to find out about the settlement amount. It is best to go to the office and submit your request. If you have received already money upfront from the lawyer then it might be that you need to pay. However, it is unusual, because the lawyer can subtract his cost from the settlement and pay you out the remaining amount. Thus, we suggest to check with the insurance company first before paying any money.
Gevan
April 20, 2021 12:05 amHi,
I met in accident last year February.. and its not my fault.. a car hit a bike and that bike slide to my lane hit my bike(1000above big bike). After police report and all, police investigation paper result said cause of accident is the car. Well I claim the car insurance for my bike repair.
I hired adjuster to get damage report. Adjuster gave loss report for about 25k. 1st the car insurance company approve 4k only. After I appeal they gave 17k. What about the balance? Please advice me on this matter. My bike already in garage for 1 year and 2months..
Thanks in advance
BaoBao
May 28, 2021 8:44 amHi, let’s say :
I’m an the owner of the car and policy.
My sibling drove my car and hit other driver’s car.
But the driver was speeding at a T-junction.
The driver does not have driving license, we lodged police report.
What will happen here ?
Can the other driver still claim my policy ? Because the other driver is not willing to go to police station to report.
Can I claim his ? Seems like he was driving someone’s car without license.
Justine
June 22, 2021 12:37 pmIf the other driver’s car is insured, the insurance will have to pay. It does not matter if the driver has a license or not for you.
Meez88
January 3, 2022 2:35 pmHi, what about if someone hit my car at the back… and i want to claim from the 3rd party due to damage of the camera recorder and also medical..can that both be claim or not?
Justine
January 3, 2022 7:37 pmYou can claim for medical but not for the camera recorder.
Tan Tan
January 10, 2022 9:56 pmHow about hit n run case?
Have good evidence pho
Justine
January 25, 2022 10:42 pmYes. You need to make a police report and make a claim against the insurance company of the car.