PUTRAJAYA: Bank Negara Malaysia (BNM) has clarified that drivers who were not at fault in an accident can now claim repairs through their own comprehensive insurance policies without jeopardizing their No Claim Discount (NCD), under the Own Damage Knock-for-Knock (ODKFK) provision.
How It Works
The ODKFK provision allows faultless motorists to:
- File a claim with their own insurer directly—without making a claim against the at-fault party.
- Receive repair assistance quickly, avoiding upfront expenses.
- Retain their NCD, as long as the accident is clearly documented and confirmed through a police report.
To process such claims, motorists must submit a police report and necessary investigation documents to their insurer.
Exceptions Apply
BNM cautions that the ODKFK policy does not cover all scenarios. You cannot claim under ODKFK if:
- The accident involves public hire or reward vehicles (e.g., taxis, buses, Grab/Uber).
- The incident results in bodily injury, regardless of fault.
- The third-party vehicle is uninsured.
In these cases, the affected motorist must file a traditional claim against the at-fault party’s insurer—a more complex and potentially costly process.
Consumer Protections and Expectations
In addition to simplifying claims, BNM is bolstering motorist support by mandating:
- 24/7 roadside assistance through insurer apps or official websites to reduce reliance on unauthorized tow services.
- Complaint resolution within 14 working days, with a goal to shorten that to five days starting April 2026.
Why This Matters
Malaysians are familiar with the value of NCD, which can reduce your insurance premium by up to 55% after six claim-free years. Previously, making any own-damage claim—even if you weren’t at fault—would reset the NCD to 0%. The ODKFK framework now safeguards diligent motorists from losing these benefits unfairly.
This move is especially timely amid rising public concerns over fairness, transparency, and resilience in insurance practices—especially when accidents involve vehicles outside personal control like public transport.
