BNM: Accident Victims Can Claim Insurance Without Losing NCD

Image Credit : Malaysian central bank holds policy rate

Bank Negara Malaysia (BNM) now allows drivers who are not at fault in road accidents to claim vehicle repairs directly through their own insurance without losing their No Claim Discount (NCD). This system is called Own Damage Knock-for-Knock (OD-KFK). It was introduced to speed up claims and reduce financial burdens while waiting for the at-fault party. Previously, drivers had to wait for the other party’s insurer, causing delays and upfront costs.

With OD-KFK, comprehensive policyholders can file claims directly with their own insurer. All that is required is a police report and relevant vehicle documents. The insurance company will handle repairs without affecting the driver’s NCD. This gives drivers peace of mind because their annual discount remains intact.

How OD-KFK Works

Image Credit : https://www.kurnia.com/blog/odkfk-knock-for-knock

OD-KFK allows not-at-fault drivers to speed up vehicle repairs. To use the system, drivers submit a police report along with vehicle documents to their own insurer. The insurer evaluates the damage and immediately starts repairs. Drivers do not need to wait for approval or payment from the at-fault party. Importantly, the NCD remains intact even when claiming under a comprehensive policy. This system also reduces the risk of upfront costs that drivers previously had to cover, making the insurance process more user-friendly and transparent.

Limits and Exceptions of OD-KFK

OD-KFK simplifies claims, but it has limits. The system does not apply to accidents involving buses, taxis, or public transport vehicles. Claims involving personal injuries must be made to the at-fault party’s insurer. Additionally, claims for third-party property damage still follow specific policy procedures. Understanding these limits ensures that claims proceed smoothly. Following the rules protects your NCD and guarantees proper vehicle repairs.

Claim Timeframes

BNM introduced clearer timelines for insurance claims. Own vehicle damage claims are generally settled within 20 working days. Third-party property damage claims are resolved up to 80 days faster than before. These timelines reduce waiting time and stress for drivers dealing with vehicle damage.

Statistics show that more drivers now use comprehensive policies since OD-KFK allows claiming without affecting NCD. Drivers feel confident filing claims immediately when they are not at fault. Insurers track claim volumes and resolution times to ensure processes are efficient and transparent.

How to Claim Motor Insurance

Image Claim : A guide to understanding Own Damage Knock-for-Knock (OD-KFK) – Jom Level Up

The claim process under OD-KFK is straightforward. Drivers first contact their insurer and explain the accident, specifying that they are not at fault. They then provide a police report and vehicle documents. These documents can be submitted via the insurer’s app or website. The insurer manages the repair and keeps the driver updated on claim status. This approach allows drivers to claim without waiting for the other party and ensures that NCD is preserved.

Claim Time for Car Insurance

With OD-KFK, claims are faster and more predictable. Insurers have clear guidelines to resolve each claim within a set timeframe. Drivers can generally expect repairs or payment within 20 working days for their own vehicle damage. This speed is a significant improvement compared to traditional claims processes.

Digital Roadside Assistance

Image Credit : https://jomlevelup.my/the-future-of-insurance-takaful-claims-is-digital/

BNM also introduced Digital Roadside Assistance for policyholders. Drivers can request registered tow trucks digitally and locate nearby repair workshops. Claim documents can also be submitted through the insurer’s app or website. This service helps drivers handle accidents at any time and reduces the risk of using unregistered towing services.

If a dispute arises with an insurer, drivers can contact the Financial Ombudsman Service (FOS). FOS provides free and independent dispute resolution. This ensures that drivers’ rights are protected and claims are handled fairly.

Netizens Doubt Implementation of ‘No-Fault’ Insurance Claims

Source: https://x.com/adamyusuf88/status/1962319347852136602

https://www.tiktok.com/@rozmalmalakan/photo/7544735724373904661

Public reaction to the announcement that “pemandu tidak bersalah boleh tuntut insurans sendiri, NCD kekal” has been mixed, with many netizens expressing skepticism and frustration. Some users shared personal experiences of losing their NCD despite being the innocent party in accidents, pointing out that insurance policies often require victims to claim under their own coverage if the other driver’s insurance is insufficient. Others questioned whether the new measure will truly be implemented, with comments suggesting it may only look good “on paper” while enforcement remains slow. Concerns were also raised about whether this policy might lead to higher insurance premiums in the future, adding to public doubts about the sincerity of insurers.

Beyond skepticism, many comments reflected a lack of understanding about the technicalities of NCD protection, refunds, and transferability, showing that clear communication is still needed. Some users even described the system as a subtle form of discrimination, while others used sarcasm, saying there might be “udang di sebalik mee” (a hidden agenda). Overall, the responses highlight a trust gap between consumers, insurers, and regulators. To bridge this gap, stronger enforcement and transparent explanations from BNM and insurance companies are necessary to reassure the public that this policy will genuinely protect drivers who are not at fault.

Conclusion

OD-KFK allows drivers who are not at fault to claim insurance without losing NCD. The process is faster, transparent, and reduces financial burdens while waiting for the at-fault party. Clear guidelines, digital services, and free dispute resolution make claims easier and fairer. Drivers now have the confidence to repair their vehicles without affecting NCD, creating a more user-friendly insurance system.

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