Bank Negara Malaysia (BNM) has clarified that motorists who are not at fault in an accident may claim from their own insurance under the Own Damage Knock-For-Knock (ODKFK) policy without risking their No Claim Discount (NCD).
Speaking on a BFM podcast, Lailatul Akma, Deputy Director of Bank Negara Malaysia’s Consumer & Market Conduct Department, outlined how the new measures aim to help Malaysian consumers.
Faster repairs for vehicle owners
According to the central bank, motorists with a comprehensive motor insurance policy can file a claim directly with their own insurer, instead of waiting for the at-fault driver’s insurer to process the claim.
This allows vehicle owners to repair their vehicles more quickly without having to cover the repair costs upfront.
To initiate a claim, motorists are required to submit a police report along with the necessary supporting documents to their insurer.
Exception for ODKFK
BNM clarified that the ODKFK policy does not apply in all cases. If the accident involves a bus, a taxi, or results in injury, the affected motorist must claim directly from the at-fault party’s insurer.
In a move to protect consumers, Bank Negara has also directed all insurance companies to provide 24/7 roadside assistance services through their mobile apps or official websites.
This measure is aimed at reducing motorists’ reliance on unauthorised tow trucks that often approach accident scenes.
BNM further announced that insurance companies must respond to consumer complaints within 14 working days. Beginning April 2026, this timeline will be shortened to just five working days to ensure faster resolutions.
