Time to stop unfair car insurance claims – FOMCA

Time to stop unfair car insurance claims – FOMCA

Cases where motorists are forced to claim from their own insurance in the event of a vehicle accident instead of the cover from a liable party are becoming more regular, and the Federation of Malaysian Consumers Associations (FOMCA) says the matter is something authorities need to address.

Its CEO, Saravanan Thambirajah, said that in the event of an accident, both parties needed to lodge a police report. “This will enable the victim to claim from the offender’s insurance, in the event the offender does not want to pay for the damage. Unfortunately, some offenders do not lodge reports, making it difficult for victims to claim on insurance,” he said in a statement.

Under these circumstances, many have had to claim from their own insurance, paying the penalty for someone else’s actions. “In this event, the victims will lose their no-claim bonus (NCB), which is unfair. Why do victims have to go through this agony because of mistakes made by others?”

Time to stop unfair car insurance claims – FOMCA

Saravanan also said there were many cases where motorists drove around without valid vehicle insurance, and were not penalised for it in the event of an accident. He said that such offenders would get off scot-free, without any action taken against them, eventually being able to renew their vehicle insurance without issue.

He said that measures need to be taken to curb the long-standing issue, and urged authorities to address the matter. “Offenders need to be punished and victims need to be protected by providing them insurance coverage without losing their NCB.”

“Bank Negara, as the regulator of insurance, should work with the General Insurance Association of Malaysia (PIAM), police and the road transport department (JPJ) to form a task force to eradicate this menace,” he explained.

How should corrective measures be implemented, and what action should be taken? Share your thoughts with us in the comments section.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Logical Deduction on Dec 14, 2021 at 11:31 am

    Only car is hurt, no human is hurt. so no problem

    Like or Dislike: Thumb up 6 Thumb down 81
    • Ghani on Dec 14, 2021 at 3:02 pm

      When car hurt, wallet & bank account oso sakit, tahu tak?!?

      Like or Dislike: Thumb up 46 Thumb down 2
      • Civic Turbo 2018 on Dec 14, 2021 at 4:44 pm

        And hit by motorbike how?

        Like or Dislike: Thumb up 4 Thumb down 0
        • Colin on Dec 16, 2021 at 12:08 am

          Motorbike hit car, motorbike no need to pay car because motorcycle insurance policy coverage not enough to cover car damage. The authority should look into this too.

          Like or Dislike: Thumb up 19 Thumb down 0
        • Latokseli Nakjeep Rayzack on Sep 04, 2022 at 3:04 am

          Yeah.. this issue – if motorbike hit car, the motorbike is at fault but the bike insurance is not enough to cover car repairs so car owner has to claim from own insurance so NCB gone case. One solution is the car owner should not claim from own insurance first. Relek.. Try to claim wateva is possible from bike insurance & then to sue the bike owner in personal capacity

          Like or Dislike: Thumb up 0 Thumb down 0
    • Teslaa Corp on Dec 14, 2021 at 3:18 pm

      Wallet & bank account hurt, automatically we oso hurting inside.

      Like or Dislike: Thumb up 16 Thumb down 0
    • zero knowledge, wait until u kena…

      Like or Dislike: Thumb up 5 Thumb down 1
    • oricon666 on Dec 15, 2021 at 2:57 pm

      This guy must be Taukeh bengkel repair car… He want to see you guys hurt your cars..

      Like or Dislike: Thumb up 0 Thumb down 0
    • Amran on Dec 18, 2021 at 3:10 pm

      Hi, John

      Like or Dislike: Thumb up 0 Thumb down 0
  • Bob the builder on Dec 14, 2021 at 11:42 am

    Learn from other first world countries on how they handle car insurance. There are so many scams regarding claim of insurance. End up the loser will be the customers losing their NCD.

    Like or Dislike: Thumb up 16 Thumb down 0
  • Exactly, please do something about it!!!!!!

    Like or Dislike: Thumb up 15 Thumb down 0
  • Angry Voters on Dec 14, 2021 at 12:35 pm

    This caring government is already allowing 80% discounts on summons to help lighten the burden of the rakyat which compensate for any extra cost incurred. We are well on track to a better nation.

    Like or Dislike: Thumb up 30 Thumb down 37
    • Bro, saman is not insurance la.. If everyone follows traffic rules & road safety, don’t have to worry about insurance cover. Giving 80% discount on saman is not deterrent enough for repeat offenders.

      Like or Dislike: Thumb up 9 Thumb down 1
  • YB Albert on Dec 14, 2021 at 1:04 pm

    Times have been covidic now,I notice more of my neighbours have been laid off and many on the verge of bankruptcy.
    But may I ask,what are those gomen vvips doing with this issue as raised by Fomca?
    Are they counting the days,for a fat pension where they can fly to Langkawi to splash on the four figure Rm siakap ?

    Like or Dislike: Thumb up 50 Thumb down 28
    • Stop being Anti Government on Dec 14, 2021 at 3:37 pm

      VVIP or not at least they are doing something.
      What are you doing other than watching your neighbours being laid off? Are you even a working citizen contributing to LHDN and how much?
      You sound like an entitled old man doing nothing but blaming the government every day for your own shortfalls.

      Like or Dislike: Thumb up 35 Thumb down 27
      • Amran on Dec 14, 2021 at 6:04 pm

        YB tak salah, u pun tak salah. Rakyat tak salah. Penguatkuasa yg buat silap.

        Like or Dislike: Thumb up 2 Thumb down 1
      • Sam Loo on Dec 14, 2021 at 8:27 pm

        The question of being anti gomen doesnt arise.
        Fomca has been voicing not now…for quite a while and nothing concrete seen.
        The usual answer is ‘kami akan memantau” until the cow comes home.
        If you r so capable,go and help the laid off folks.
        Dont be a lapdog just cos someone like Fomca is telling the truth.

        Like or Dislike: Thumb up 4 Thumb down 2
        • Why defend a person who got so much free time to ogle their neighbours affairs and come here to complain?

          Like or Dislike: Thumb up 1 Thumb down 0
          • Ghani on Dec 16, 2021 at 6:53 pm

            That’s right. If u pikir mana2 jiran u ada kutuk gomen, sila buat report.

            Like or Dislike: Thumb up 0 Thumb down 0
      • Everyday he come here sounding like bitter person who failed in life and blaming everyone else but himself for those failures.

        Like or Dislike: Thumb up 3 Thumb down 2
        • Ghani on Dec 15, 2021 at 9:33 pm

          Success & fail is part of life but don’t worry. Better Nation gomen always accept criticism no matter how harsh.

          Like or Dislike: Thumb up 2 Thumb down 1
          • Rakyat Malaysia on Dec 16, 2021 at 3:05 pm

            Correct! We Rakyat Malaysia supports!

            Like or Dislike: Thumb up 0 Thumb down 0
          • Amran on Dec 16, 2021 at 6:56 pm

            Aku pun support! (Er.. ada free nasi bungkus ke?)

            Like or Dislike: Thumb up 0 Thumb down 0
  • Dredd on Dec 14, 2021 at 1:17 pm

    If the question is about claiming the other party, it should be allowed regardless if the offender had lodged a police report or not. The victim’s insurance agent just need to get a police report copy and forward it plus claim documents to the insurance provider of the offender.
    As for those going around without insurance, it could be due to the effects of MCO extension but otherwise if intentional, they must be made to pay or else be hauled to court.
    Dredd agrees.

    Like or Dislike: Thumb up 21 Thumb down 0
  • I think the spotlight should also be on motorcyclist as well. How to go about if they were to get into an accident with a motor vehicle and found to be wrong? What will be the procedures like? Would the motor vehicle lose their NCB even though they are not at fault (ie traffic light incidents).

    Like or Dislike: Thumb up 12 Thumb down 2
    • Arnie on Dec 15, 2021 at 3:23 am

      Even if u can claim, but how much? A simple knock & spray dy cost much higher than a motor insurance coverage. So how?

      Like or Dislike: Thumb up 1 Thumb down 1
  • Richard on Dec 14, 2021 at 1:30 pm

    The government should start from the bottom… i.e motorcycle. I believe we have encountered such nuisance whereby we were knock by the motorcycle and even the Police claim that it’s the rider fault, you just cant claim from his/her motorcycle’s insurance!!! Make any sense??? End up claiming own insurance & NCB is gone….

    Like or Dislike: Thumb up 32 Thumb down 0
    • Kancil Hybrid on Dec 14, 2021 at 2:26 pm

      Betul. Moto langgar and then chow. Nombor plate pun tak sempat nampak.

      Like or Dislike: Thumb up 11 Thumb down 0
      • Car lover on Dec 15, 2021 at 9:48 am

        I kena langgar , sempat nampak and take picture , show , report , after a week , kena Marah because that’s car number not Motorcycle number, ….kena game kau kau , insurances, claim sendiri, NCb reset and Kena marah for gave wrong number plate … putih putih mati

        Like or Dislike: Thumb up 3 Thumb down 0
      • oricon666 on Dec 15, 2021 at 3:00 pm

        Nombor plate pun fake punya bro….

        Like or Dislike: Thumb up 3 Thumb down 0
    • 4G63T DSM on Dec 14, 2021 at 2:40 pm

      The problem lies deeper.

      In order to claim the motorcylist’s insurace, likely thier rates will have to be much higher. And you know how our government is reluctant to offend a certain demographic.

      For what it’s worth, my motorcycle insurance is higher than my car’s insurance, so I dont see why my motorbike insurance wont/cant cover the other motorist. Its only the smaller capacity kapchais that is the problem. And those grab riders should pay higher premiums for thier commercial use of thier private vehicles.

      It does not make sense why I need to forgo my NCB for someone else’ mistake. When overseas, a not-at-fault accident wont impact my own insurance, even if my own insurance pays out for it (minus the deductible or any “betterment clause”… I had 2 not-at-fault insurance claims that even had the deductible waived.

      loosing one’s NCB for someone else’ mistake will never fly when we have strong consumer rights.

      Like or Dislike: Thumb up 25 Thumb down 3
      • Uber vs Grab on Dec 14, 2021 at 4:46 pm

        Grab drivers already have their e-hailing insurance either from Grab or their own car’s insurance before being allowed to drive. So know your fact before commenting here.

        Like or Dislike: Thumb up 2 Thumb down 1
      • Commenter on Dec 15, 2021 at 10:18 pm

        Kapcai insurance aint cheap too, without NCD discount. RM7-8k bike already more than RM400. No reason car cannot claims from bike. By percentage of insurance price and vehicle value, its already higher than car.

        Like or Dislike: Thumb up 2 Thumb down 0
      • Yong Yew on Dec 20, 2021 at 11:22 am

        Indeed. The problem lies with the fact that most motorcyclists are on the lower income bracket. Seeking to claim insurance from them may look like the rich harassing the poor, which may cause other problems to emerge.

        Like or Dislike: Thumb up 1 Thumb down 1
    • Always Kena Knocked on Dec 14, 2021 at 2:54 pm

      Not true. Car drivers CAN claim against motorcyclists if the latter are found to be at fault by the police investigation officer (IO). It is a common myth that even many car workshops believe. I once claimed against a motorcyclist who knocked on me during a traffic jam. I showed my dashcam video to the IO and almost immediately he said it was the other party’s fault. The IO told me if in another 24 hours that guy didn’t make a police report, he would issue a summon and the outcome (keputusan) of the investigation would be the motorcyclist’s fault. With this outcome, u can submit it to your own insurance company and they will claim against the motorcyclist’s insurance. There was another time a long trailer knocked on me. Same thing applies and I managed to claim against the trailer company’s insurance.

      P/s: my insurance is under Etiqa.

      Like or Dislike: Thumb up 30 Thumb down 4
      • Yes. You need photo or video evidence and then make a claim against the other. It is acceptable.

        Like or Dislike: Thumb up 0 Thumb down 0
      • This is very informative. All these years driving (and some riding) with passenger car couldn’t claim motorcycles’ insurance.

        How about cyclists? I saw a Youtube clip cyclist dented a car rear bonnet.

        Like or Dislike: Thumb up 0 Thumb down 0
  • kereta_lembu on Dec 14, 2021 at 2:14 pm

    Its about time and the right move but don’t stop there. There were many horror stories about getting involved in an accident with a motorcyclist or even bus kilang and the offender will most likely get off the hook, leaving the car owners to deal with the misery.

    This also encourages motorcyclist and bus drivers to be more reckless knowing that they will most likely get off the hook.

    Maybe if they too can feel the burden, then they will be more responsible on the road.

    Like or Dislike: Thumb up 4 Thumb down 0
  • Think on Dec 14, 2021 at 2:27 pm

    It’s not only self insurance claims burden the insurer ,who is not faulty. There must be special sum to be introduced on motorbike insurance coverage, in order to handle the coverage that is not enough to pay the third party and end up using own insurance claims or own money. In the event that the biker is not involved in any claims by the third party, then the sum should be refunded or deducted of certain percentage.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Gloon on Dec 14, 2021 at 2:59 pm

    Well. It’s totally unfair to car victims which unable to claim motorcyclist insurance due to amount of motor insured not enough to cover car repair fees. Motorcyclist insurance should be covered up to at least 10k claim no matter what motorcycle they bought to prevent reckless attitude which usually motorcyclist had now a day.

    Like or Dislike: Thumb up 5 Thumb down 0
    • jalan kenangan '91 on Dec 14, 2021 at 3:35 pm

      yeah it happen to me… twice being hit by motorcyclist.. twice i’m the only one being issued summons as both times motorcyclist never bother to make report even though you already taken their particulars and gave it to the police.. the second time lost my NCB as the repair cost to high to fork out my own money ..sigh

      Like or Dislike: Thumb up 5 Thumb down 1
  • Drove through cross junction, I was at straight line, motorcyclist hit red light and bang on my car. Claimed my insurance lost NCD even clear evidence with picture and video and even police report wrote fault on motorcyclist and summon issued. Still because it was motorcyclist, my NCD was zeroised. Bought under P&O. Apparently this policy very grey. Some insurance allows not to zerolise NCD. Hence, my advice for now, go for reputable insurance. P&O don’t even dare to reply my email, calling them was basically useless as well.

    Like or Dislike: Thumb up 2 Thumb down 0
  • You will need photographas of the two cars in a accident for cops and your insurance to take action against the other owner. No photos, you cannot fd anything.

    Like or Dislike: Thumb up 0 Thumb down 0
  • I thinks its about time all car should install dashcam/rear cam. But this time, maybe put it lower near bumper height especially at rear of car.
    Next time someone hit your back or front, easier to identify plate number.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Shah khan on Dec 14, 2021 at 8:29 pm

    This is truly a failure by the govt as by right none of this should had happen.
    The police force and JPJ should be sued for these non compliant.Any cars or bike without insurance should vanished from the streets permanently.

    Like or Dislike: Thumb up 1 Thumb down 1
  • Semi-Value (Member) on Dec 14, 2021 at 10:43 pm

    yea man. time to stop this scam industry.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Albert Teow on Dec 15, 2021 at 8:34 am

    2 years ago my car was hit by a van pekerja from behind. As the other party refused to compensate me, I’ve to claim his insurance but cannot as he did not make a Police report and ended up claiming my own insurance !! This is road bullying !!

    Like or Dislike: Thumb up 0 Thumb down 0
  • Kasim on Dec 16, 2021 at 4:41 pm

    Firstly the police has to take setern action against motorbikes as this are the ones that create accident. The do not use motorcycle lanes that is allocated to them but ride in highways without following rules.
    If they knock ur car they just go off and car owners have to manage their damage and loose their ncd

    Same on lorry drivers who use fast lanes.
    Law should be enforced that both parties should make police report and if they fail to report action should be taken.

    Like or Dislike: Thumb up 2 Thumb down 0
  • Mohamad bin Abdul Malik on Dec 16, 2021 at 5:02 pm

    I have the experience where a motorbike knocked my car from behind. Although both of us filed Police Reports, my Insurer refused to claim from the other party’s Insurer and I lost my NCB as a result. I was told by them that “one cannot claim if the accident was with a motorcycle”. I was the victim here.

    Like or Dislike: Thumb up 3 Thumb down 0
  • Unfortunately I think the only way to properly recover the loss is through civil proceedings, which will take up more time and money than most would probably wanted to (unless you are driving a bespoke Maybach or something).

    Maybe if somebody super rich but also super vindictive decided to file a suit to waste the offender’s time and money so that he can feel hell.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Hmmmm… on Dec 18, 2021 at 1:53 pm

    I have had such unfortunate incidences in the past. But in both occasions, I have always managed to make a claim against the culprit even when he/she did not make a police report. I waited for the inspector’s report to state that I was not at fault then proceeded to submit all docs to my insurer. Then voila, all fixed & my NCD remains. Isn’t that the normal practice?

    Like or Dislike: Thumb up 2 Thumb down 0
    • aiyoyo on Oct 04, 2022 at 11:46 am

      fyi, my case hit by a motor from behind in federal highway fastlane, and the motor lied to the police by saying me emergency break, i wait for the IO to complete his investigation took about 6 months time, by that time i already claim it on own damage and NCD gone, just because we cant force police to do their job faster. Tried to call or text the IO always not available.

      Gov should just enforce the motor to pay more premium, so problem solved easily. low income is not an excuse for them, they should pay for their mistake. IF EVERYONE IS EQUAL BEFORE LAW

      Like or Dislike: Thumb up 0 Thumb down 0
  • Calvin on Feb 16, 2022 at 5:11 pm

    Workshop buy some illegal motorcycle and look for Ferrari BMW and hit then can earn tons of money.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Calvin on Feb 16, 2022 at 5:15 pm

    Got a big business opportunities here. Buy illegal motorcycle or motorcycle without valid insurance. Go look for Ferrari or BMW to hit. Workshop can make tons of money

    Like or Dislike: Thumb up 0 Thumb down 0
 

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