I WISH to highlight a major gap in Malaysia’s motor insurance framework that unfairly penalises car owners who are not at fault in accidents involving motorcycles or unlicensed drivers, for which I was an unfortunate victim.
Currently, when a motorcycle causes damage, car owners cannot claim repairs from the motorcyclist’s insurer due to the low sum insured amount. This forces car owners to either pay out-of-pocket or claim under their own policy, resulting in the loss of no-claim discount (NCD).
Even if the motorcyclist is clearly at fault, the financial burden falls on the car owner. Even more so if the motorcyclist suffers bodily injuries, the claim is directed to the car owner’s policy, too, resulting in the loss of NCD, again even though the motorcyclist was at fault.
Similarly, when accidents involve unlicensed drivers, insurers often reject claims entirely, leaving innocent parties without recourse despite the vehicle being driven by the unlicensed driver having a valid insurance. The innocent party then has to bear the repair costs or claim from their own insurance and lose their NCD.
I seek Bank Negara Malaysia (BNM)’s clarification and intervention on these issues. Why are OD-KFK (own damage-knock-for-knock) protections not extended to motorcycle-related accidents? Can measures be introduced to preserve NCD for faultless drivers and ensure victims are protected when the at-fault party is unlicensed?
Responsible motorists who pay premiums and comply with the law should not be left vulnerable due to systemic loopholes. I urge BNM to review these practices and consider regulatory reforms to ensure fairness and adequate consumer protection.
It is sad enough that this has been allowed to go on for so long, with thousands of car owners ending up on the losing side for so many years, especially so with the number of motorcycles on the road now, including illegally on highways’ car lanes due to poor enforcement by the authorities.
Apparently, all insurance companies in Malaysia practise the same approach, leaving affected parties with little recourse but to take the matter to court – a route that is unlikely to succeed due to policy clauses. Anyhow, the legal costs and lengthy court process alone deter affected owners, with no guarantee the other party can pay even if they win.
Concerned Malaysian