Accident 101 – Road Accidents Frequently Asked Questions

We have covered a lot about road accident in our Accident 101 series, from what to do at the scene of the accident and at the police station, to how to handle different kinds of insurance claims. Below are the articles in case you have missed them.

1 – What to do at the scene of an accident

2 – What to do at the police station

3 – Don’t fall victim to tow-truck scam

4 – Making a car insurance claim

5 – Making a Third Party Insurance Claim 

This is our last article in the 101 series where we will be summarizing some of what had been discussed in earlier titles and talk about other frequently asked questions relating to road accidents especially in Malaysia. So let’s begin!
 

Road Accidents: FAQ

1. I just crashed into a car, damaging it and my own. Can I claim from my insurance?

It depends on the policy that you have, assuming that it is your fault, if you own a:

• Third party policy: No. You have to pay for your own damages. The other party however can claim from your insurance.
• Comprehensive cover: Yes, your insurance can pay for damages for both cars, but you will lose your NCD if you make a claim to repair your car.

The table below will help you understand the types of policies and their coverage:

(Suggested reading: Understand Motor Insurance Policies and Coverage)

2. I just ran over somebody’s dog, injuring/ killing it. Can the owner claim damages from me? What if the owner is suing me for damages, can I claim from my insurance?

We will address this question in two parts:

a) I just ran over somebody’s dog, injuring/ killing it. Can the owner claim damages from me?

Yes, the dog is someone’s property, hence the dog owner can claim Third Party Property Damage (TPPD) from your motor insurance.  However,  he will have to provide documentary and undisputed proof that the dog belongs to him to your insurer.

b) What if the owner is suing me for damages, can I claim from my insurance?

Yes, your Motor insurance will protect you from claims like the above.  If your insurer is satisfied that the dog owner’s claim is valid, then your insurer will compensate the dog owner’s claim directly.  You do not need to pay the dog owner and then claim back from your insurer.

3. I crashed into a tree, suffering a few broken bones and had to be hospitalized. Can I claim from my motor insurance for treatment and hospitalization cost?

No, your motor insurance does not cover for your medical costs.  We recommend that you protect yourself by buying at least a Personal Accident (PA) cover. Some insurers bundle their PA with Motor insurance and it is called Drivers and Passengers Personal Accident (DPPA).

4. A motorbike crashed into my car and the police concluded that it was his fault. But I’ve been told I can’t I claim from his insurance for damages done to my car because it involves a motorbike!

This seems to be a common belief, but it isn’t true. You can in fact make a TPPD claim against the motorbike’s insurer, more so when the police are on your side. The instances where you cannot claim against the motorbike’s insurer are:

(a) his motor policy has expired or

(b) he has no motor insurance policy from the onset

In both instances, you can make a TPPD claim directly against the motorbike rider or owner, or appoint a lawyer to do so.

However, bear in mind that lawyers cost money, and the damages to your car have to be substantial enough to justify hiring a lawyer.  You also have to consider if the motorbike’s rider or owner have the ability to pay you if they lose the case in court.  For example, if your car’s damage is worth RM1,000 and your lawyer cost RM3,000, it may not be worthwhile to sue if the motorbike’s owner is a clerk earning RM900 month with a large family to feed.

The part where you have been told that you cannot claim from the motorbike’s insurer for damages done to your car is probably the confusion over the Knock for Knock (KFK) Agreement.  The KFK Agreement is an agreement among all general insurers and general takaful operators to eliminate disputes among themselves as to who is at fault.  You do not need to know about KFK as it is an internal matter among insurers and does not prejudice you from making a TPPD claim.

5. A taxi/ bus rammed my car from behind. Will I be able to claim from their insurance?

You can file a Third Party claim (link to our TP claim article), though claim involving public vehicles may not be as straightforward and could be time consuming and tedious. We highly advise you to engage a loss adjuster. You will also have to pay for the repair first and claim after.

(Suggested reading: http://www.loyarburok.com/2012/12/11/accidental-lessons/)

6. A friend who was in the car with me obtained an injury when the car I was driving skidded and hit a lamppost. He is demanding that I pay for his medical cost. What can I do?

(Suggested reading: Motor insurance additional coverage)

If you had purchased an additional cover to your motor policy called “Legal Liability to Passenger (LLP)”, your insurer company will pay for your passenger’s medical treatment cost up to a certain limit. This cover is not expensive, about RM30-50 per year depending on your car engine’s cubic capacity.

However if you don’t have LLP, you will have to bear the cost yourself, unless your passenger is able to prove that he is being carried in your car by reason of and in pursuance of a contract of employment.  In simpler words, your friend needs to sit in your car as you are driving him to his workplace.

7. I was involved in a road accident with another car but I am sure it was not my fault. However, I was found guilty by the investigating officer. What can I do?

You have two choices:

(a) Appoint a lawyer and fight it out in court.  Nowadays, courts are quite efficient, however, you will still need to take time off from your daily activities to attend the court hearing.  Inform your insurer that you want to litigate this matter as your insurer will pay up to RM2,000 in legal fees if you get their consent in writing.  It does not matter if you have Comprehensive, Third Party Fire & Theft or Third Party Cover.  Usually your insurer will provide a lawyer from their panel of lawyers for ease of communication.

However, your insurer will not entertain you if this is a murder case or due to non-accident matters like speeding tickets, parking on the yellow lines, car got clamped, etc as these does not fall under the scope of motor insurance coverage.

Please bear in mind too that the court’s decision may vary greatly depending on the facts of the case.  Do not be surprised if the court sided with the opposite view. We covered about this here.

(b) Take no action, as going to court is a hassle and not worth the time or effort especially if the amount involved is small.   However, before you pay the traffic fine, please notify your insurer to seek their feedback especially if the police charge you under Section 41, 42 or 43 of the Road Transport Act 1987 as these are serious offenses and can carry a jail term. Please refer to question No 1 for conditions on claiming for your car’s repair costs and NCD entitlement.  For an understanding of NCD, click here.

8. I was involved in a minor road accident. I paid the other party off since the amount is small and paid for my own repair without claiming from my insurance company. Do I still need to inform my insurer?

By law, all accidents must be reported to the police within 24 hours, failing which you will be fined from RM120 onwards by the police for late reporting.  In addition, the motor policy stated that you have to notify your insurer accordingly, even if you have settled the matter amicably with the other motorist and you have no intention to claim.  The reason is that your insurer will have early warning of an accident involving your car in case the other motorist reneged and files a Third Party Property Damage (TPPD) or Third Party Bodily Injury claim (TPBI) against your insurer.

However, realistically it is a consideration you have to take, as some insurer will immediately remove your NCD, even though you are clearly not claiming. This is galling especially if your NCD is already at 55%.

9. My brother drove my car one day and met with an accident. Will I be able to claim insurance?

With a TP cover, you cannot claim insurance from your own insurer. But if you have a TPFT, you can only claim from your own insurer if your car is damaged by fire, explosion, lightning or is stolen.

If you have Comprehensive cover, you can claim insurance from your own insurer.  Take note that under Comprehensive cover, there is the “Compulsory Excess” or “Endorsement 2F”.  This excess states that for any cost of repairs claim, the first RM 400 will be borne by your driver or you (if you are the one driving) under the following conditions:

a) Under 21 years old
b) Holds an “L” license
c) Holds a “P” license
d) Not a named driver
e) Any combination of (a) to (d)

In order to prevent being charged RM 400, please ensure that the driver is at least 21 years old, holds a regular driving license and is a named driver.  A “Named Driver” is someone whom you have named in your motor policy.  You can name two drivers free of charge and the third person onwards will cost an extra RM 10 each.  Read more about it here.

Kindly note that this Compulsory Excess of RM 400 is not applicable if your car catches fire, explodes, struck by lightning, or is stolen.

10. What if my insurance company declines my claim and does not pay for damages?

You have two main options:

(a) File your grievance with the Ombudsman for Financial Services. They are located at:

Level 14, Main Block,
Menara Takaful Malaysia,
No 4, Jalan Sultan Sulaiman,
50000 Kuala Lumpur.
Tel: 03-2272 2811
Fax: 03-2272 1577
Online: http://www.ofs.org.my/en/feedback.html

The Ombudsman’s jurisdiction can be found at http://www.ofs.org.my/en/scope#jurisdiction. They will try to resolve your complaints within 3-6 months if the documents are complete. Their decision is binding on the insurer but not you if you accept the decision.  If you do not accept the Ombudsman’s decision, you may proceed with other means including litigating the matter or via Arbitration.

(b) File a complaint to Bank Negara Malaysia at:

Jabatan Komunikasi Korporat,
Bank Negara Malaysia,
P.O Box 10922,
50929 Kuala Lumpur.
Tel: 1-300-88-5465
Fax 03-21741515
Email:bnmtelelink@bnm.gov.my

Upon receiving your complaint, BNM will compel the insurer to respond to your complaint. However, BNM cannot force your insurer to pay your claim.
Have a scenario you would like us to answer? Let us know! Just drop us a comment and we would be more than happy to assist. Alternatively, you can email your queries at: ops@ibanding.my

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