Accident with a car without insurance in Malaysia – what can you do? No choice but burn your own NCD?

Accident with a car without insurance in Malaysia – what can you do? No choice but burn your own NCD?

While vehicle insurance is compulsory in Malaysia, there are many incidents where it is found the other driver/car is uninsured in the event of an accident. So, the question is asked, what happens next?

We spoke to our friends in both the police Traffic Investigation and Enforcement Department (JSPT) and our buddy in the general insurance industry specialising in vehicle insurance. Most of what they told us is not new, but both forwarded different viewpoints and opinions on such an event.

Abang, it’s like this, if you don’t have insurance, you are breaking the law, simple as that. There is no excuse. Same goes with not having a licence or road tax, which makes your insurance invalid immediately,” said our JSPT contact. “For police, it is clear, terus saman (straight summons),” he said.

“As to whose fault it is in the accident, after JSPT completes the investigation, the report is issued to all parties concerned,” he added.” “After that it is up to the insurance companies to process the claims according to the facts in the report, or the courts if the accident involves injury or death,” he said in a matter of fact tone.

On the other side of the issue, from the insurance perspective, our insurance industry buddy, with over 20 years in the vehicle insurance segment, said much the same thing. “Yeah, if you get hit by someone without insurance, you have little recourse for compensation,” he explained.

Accident with a car without insurance in Malaysia – what can you do? No choice but burn your own NCD?

“Aside from the police saman, which really costs nothing in the grand scheme of things, there is nothing else you can do,” he said, “except file a civil suit.” “The problem with many Malaysian drivers is this preoccupation with the NCD (No Claims Discount),” he adds.

The NCD is given as a “bonus” by the insurance company to the insurer for not making a claim during the period of insurance cover. “Forget about the NCD, you have first party insurance cover to take care of any damage to your car, no matter who causes it, yourself, the other driver, some random stray dog crossing the street,” he said.

Explaining further, our buddy says, “no need to cry if an accident happens. As long as no one is hurt, just do an own damage (OD) claim.” Elaborating on the damage to one’s vehicle caused by an uninsured driver, our insurance buddy says, “tough luck, it is what it is, the problem is one of enforcement but that is outside my (insurance company’s) control. I cannot force anyone to buy insurance but you as the vehicle owner is required to do so by law.”

“This Malaysian fixation on the NCD makes no sense. You have an accident, just claim. It’s just a car,” he adds. “If this were my vehicle, I would let the law deal with the other driver, and I would let my insurance deal with the repair and betterment of my vehicle, if any,” he elaborated.

“If you lose your NCD after five years of driving, but the accident requires your car get a repaint, say your total NCD lost is RM2,000… tell me, what kind of paint job are you going to get for RM2,000? On the other hand, you file an accident or OD claim, the vehicle gets sent to an accredited manufacturer 4S centre, you get the factory spec paint, all original parts, where are you going to get that for that price? Have you checked the price for a headlight or tail light lately?”

As for the Malaysian preoccupation with resale value, he says, “yes, the resale value of the car is affected if there is an accident which is why I always tell my clients to go to either the manufacturer’s 4S centre, or a reputable shop.” He adds, “at the end of the day, it’s just a car.”

Accident with a car without insurance in Malaysia – what can you do? No choice but burn your own NCD?

“Of course no one wants to have an accident, insured driver or not,” he says, “but sometimes it’s unavoidable and as responsible road users, we should have adequate insurance coverage.” Noting the case of third party insurance, he says if you only have third party insurance which covers claims brought by another but does not cover your own vehicle, and the other driver has no insurance, then that’s a bad turn of events.

“Then you’re out of luck. If the other guy has no insurance and is at fault, and you only have third party insurance, then you’re on your own,” he says. That is why comprehensive insurance should be purchased whenever and wherever possible, excluding the case of classic and vintage vehicles he said.

“The other case is OD knock-for-knock (KFK) claims,” he says. This is where both parties will claim against their respective policy regardless of who is at fault, and it is left to the insurance companies to file a claim against each other for reimbursement where applicable.

“Either way, as the consumer, let the insurance company deal with it, that is what your policy is for. You don’t need more stress in what can be an already stressful situation,” says our insurance industry contact.

As for filing a civil claim, our insurance friend says that is always an option, except it costs time and money, plus finding a competent lawyer to take on the case. “If you have the time and the money to spend, great,” says our buddy, “if not, just claim against your policy and be done with it.”

Looking to sell your car? Sell it with myTukar.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Mohan K Ramanujam

Coming with diverse and extensive experience in heavy engineering, Mohan enjoys making anything with wheels go fast, especially motorcycles. His weapon of choice is the Desmoquattro engine, and he has a penchant for anything with a dash of Italian design. Strangely enough, he insists he's a slow rider.

 

Comments

  • Ben Yap on Feb 05, 2024 at 2:35 pm

    what happens if the person hit your car and you claim against the other party’s insurance. The other party’s insurance sat on it for 3 months and still under review. the person that hit your car renewed his car insurance with a different insurance provider. Can the claim still go through?

    Like or Dislike: Thumb up 18 Thumb down 2
    • PlainBS on Feb 05, 2024 at 5:38 pm

      Nowadays Loke is pushing for paperless, how to know someone has valid insurance when you might not even know if he got valid road tax as it no more need to display on windscreen? This gomen only thinks with his ass and instead of solving problems they create new ones.

      Like or Dislike: Thumb up 26 Thumb down 7
      • im from /k on Feb 05, 2024 at 11:26 pm

        woi bodo, polis can check digitally la. Loke is the best minister, even BN politicians wanted him to join their side during PH 1.0 era

        Like or Dislike: Thumb up 3 Thumb down 10
        • Amran on Feb 06, 2024 at 12:36 pm

          Woi bodo, polis saja bole check you polis ke? Rakyat marhaen manade bole tau dorang ada lesen, roadtax, insurans yang sah.

          Like or Dislike: Thumb up 6 Thumb down 3
          • Jonathan on Feb 09, 2024 at 10:35 am

            If you got hit by insured car or not, you still have to repair your car, it’s just a matter of you use your own insurance or another car insurance.

            Like or Dislike: Thumb up 0 Thumb down 0
  • Dah Menang Semua on Feb 05, 2024 at 2:36 pm

    Similar to the article before
    No practical solution
    Read = No Read

    https://paultan.org/2024/01/17/car-vs-bike-accident-in-malaysia-always-the-car-at-fault-why-cant-we-claim-from-the-bikes-insurance/

    Like or Dislike: Thumb up 39 Thumb down 0
  • Bob Mal on Feb 05, 2024 at 3:40 pm

    SO basically now everyone can become their own law its up to you get saman and take the chance including bribe and you did save about Rm1k every year for cars after 5 years.

    Like or Dislike: Thumb up 8 Thumb down 1
  • davenport on Feb 05, 2024 at 4:04 pm

    moto langgar – burn NCD
    car with no inso langgar – burn NCD

    Grabcar je lah.

    Like or Dislike: Thumb up 17 Thumb down 1
    • Whoami on Feb 05, 2024 at 4:57 pm

      That why drive old car less than 10k has advantage compared to 200k car

      Like or Dislike: Thumb up 13 Thumb down 1
  • Daim-ler on Feb 05, 2024 at 4:23 pm

    Better drive without road tax and insurance like those foreigners, just pay saman RM300 cheaper than paying thousands for yearly renewals with no NCB to worry about. saman alsa can wait for discounts

    My XV kena last year, got hit by indon foreigner driving old iswara buruk. i have to lose my NCB, the indon fella kena saman only. call the f he never pick up said he wanna pay. whats the point of having nice overpriced cars in malaysia

    Like or Dislike: Thumb up 32 Thumb down 1
    • Alfonso Romeo bin Kelembai on Feb 05, 2024 at 6:04 pm

      Indeed. No worries.

      Just yakk yakk yeayy… Yakk yakk yeayy

      Like or Dislike: Thumb up 4 Thumb down 1
    • Uk camper van couple on Feb 05, 2024 at 9:18 pm

      100 if you pay on the spot. Lagi jimat. U didn’t watch our video?

      Like or Dislike: Thumb up 10 Thumb down 1
  • long story short. Nthg will change the current situation until our enforcer really do their job. No use telling all kind of glamour stories about our law, our insurance policy. All those are pretty much non sense. Our enforcer r usually in hibernation mode.

    Like or Dislike: Thumb up 16 Thumb down 0
  • Najib on Feb 05, 2024 at 5:51 pm

    Talk = no talk article

    So ko nak settle sini atau balai?
    Settle sini rm100..settle balai rm300

    Klo vip dpt pardon 50%

    Like or Dislike: Thumb up 16 Thumb down 2
    • Bossku on Feb 05, 2024 at 9:22 pm

      Masa dalam penjara diskaun 50%
      Saman 210 juta diakaun 75% bayar 50 juta je
      Rasuah 2.1 billion masih dalam poket
      Who’s getting the best deal?

      Like or Dislike: Thumb up 9 Thumb down 0
    • Zahid on Feb 06, 2024 at 8:07 am

      50% diskaun kecik je. Haritu PMX bagi 70% tak bagi bossku pulak. Masa utk tukar PMX!

      Like or Dislike: Thumb up 2 Thumb down 0
  • Spoken like a true insurance agent hungry for signups.

    Like or Dislike: Thumb up 11 Thumb down 0
  • Insurance agent said: it is just a car. Not insurance agent’s car of course said like this. Do u know car is one’s person biggest purchase. Don’t talk like car is a cheap thing

    Like or Dislike: Thumb up 17 Thumb down 0
  • Insurance agent said. It is just a car. Not your car of course said like this. Do u know car is one’s biggest purchase. Don’t talk like car is a cheap thing

    Like or Dislike: Thumb up 12 Thumb down 0
  • Ethan on Feb 05, 2024 at 8:32 pm

    It’s not just 1 year but ncd. The subsequent years are also affected

    Like or Dislike: Thumb up 2 Thumb down 0
    • Jonathan on Feb 09, 2024 at 10:46 am

      That’s from insurance agent that always accident, his or her NCD is in the lowest and may even with loading on the policy. No feel already

      Like or Dislike: Thumb up 0 Thumb down 0
  • hitman4hire on Feb 05, 2024 at 9:46 pm

    The legal way isnt going to help? useless law where only the people following the law lost no matter what.

    No worry, theres always the gangsters way.
    Last resort u might not get your money back, but theres gonna be satisfaction

    Like or Dislike: Thumb up 1 Thumb down 1
  • nagaganas on Feb 05, 2024 at 10:05 pm

    sorry but this a dumb article that doesn’t really help

    Like or Dislike: Thumb up 6 Thumb down 1
  • They forget to mention that, if your car is more than 5 years and you send to 4S center – your will be personally charge with 25% on the cost of the repair and not cover by the insurance – no matter who fault it is.

    Like or Dislike: Thumb up 4 Thumb down 1
  • DonkeyKong on Feb 05, 2024 at 11:48 pm

    Of course the dumb insurance agent will play down the fixation with NCD. Without NCD the premium will be higher and so are their commissions. Insurance salespeople are just as untrustworthy as credit card salespeople, MLM cult members and UNICEF/UNHCR/WWF donation collectors.

    Like or Dislike: Thumb up 5 Thumb down 2
  • komarad on Feb 06, 2024 at 9:22 am

    when car without r/tax being used on the road police/jpj must confiscated and issue hefty summon; only after renew r/tax can release the car.. not just summon and let go…

    Like or Dislike: Thumb up 6 Thumb down 0
  • Lance Chau on Feb 06, 2024 at 11:11 am

    Yes, some bros here might be right. Bayar saman saja, RM300 compared with yearly insurance and road tax.

    Like or Dislike: Thumb up 3 Thumb down 0
  • hazri on Feb 06, 2024 at 12:02 pm

    last year, february, my honda city was hit at the back by mazda 3. go to police report and after investigation, not my fault. so do claim kfk. use my insurance first to repair, then claim back. my ncd not affected. do at honda body paint centre. was quoted by honda rm35,000. markup kaw2. but etiqa adjuster just give rm17,000. claim using honda insurance package, so theres no betterment. all done in march, a month before raya. get 6 month warranty body paint job. my honda city look like new again. the only thing i hate is bumper gap.

    Like or Dislike: Thumb up 1 Thumb down 0
  • Setipu on Feb 10, 2024 at 11:45 am

    Luckily I only used normal and not over priced car, and pay affordable insurance. When accident happen last year the insurance cover all. If using overpriced car then need to pay high insurance to proportion to the value.

    Dont use overpriced car. Unless you use it for business that bring profits. Better invest buy home (asset) that you can enjoy when at home.

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required