15/04/2022
Three Different Types of Insurance Claims
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There are generally two types of motor claims you can file for. They are as follows:
1. Own damage claim
This is when your own car is damaged due to an accident. You will want to claim for own damage if the accident was your fault with the condition that you have a comprehensive policy. If the accident was not caused by you, then there is no need for you to claim Own Damage since you would be able to claim from the other party’s third party cover. Unfortunately, if you do not have a comprehensive cover, you would not be able to claim from any insurance. Which means that you will have to bear the cost of repair yourself.
The claim from: Own comprehensive cover
Condition: Accident was your fault
Pros: Speedy process
Cons: You lose your NCD, additional charges will apply (betterment, excess) (Click here to understand these terms)
2. No-Fault Damage
You can make a No-Fault Damage claim from your own insurance company when the accident was not caused by you also with the condition that you have a Comprehensive cover. Doing this, instead of claiming from the other party’s Third Party cover, is usually to save you time as the latter may take a longer time.
The claim from: Own comprehensive cover
Condition: Accident was NOT your fault
Pros: Faster claim process, retain your NCD
Cons: Additional charges will apply (betterment, excess)
This is one of the many benefits of owning a comprehensive cover, whereby when an accident takes place, you do not worry about having to handle the claims process yourself. Such as chasing after the other party’s insurance company, filing forms and necessary information. Having a comprehensive cover means all this is being done on your behalf by your insurer.
3. Third party claim
Who is this third party we are always talking about?
The third party simply means the other party that is involved in the accident. In Malaysia, every motorised 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.
1st party (You)
2nd party (the intermediary/insurer)
3rd party (the other who involved in the collision)
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.
When the fault is undecided…
There are cases when the fault of the accident cannot be determined by the police or the court. In which case, you should still proceed with claiming under No-Fault Damage to received the biggest advance it offers. Often times, the decision would be that the fault is split evenly between the two parties. In which case, both parties will now have to bear the cost of their own damages. When this happens, the No-Fault Damage claim that you have made earlier would be automatically converted to Own Damage claim (and you will lose your NCD).
