The General Insurance Association of Malaysia (PIAM) has said it welcomes the recent statement by road transport department (JPJ) director-general Datuk Aedy Fadly Ramli regarding the need for stricter compliance with auction standards for vehicles categorised as Beyond Economic Repair (BER) and Approved Automotive Treatment Facility (AATF). This comes following the department’s investigation into the issue of “total loss” vehicles being reused on the road.
In a press release, the association said general insurance and takaful companies are working closely with key stakeholders like Bank Negara Malaysia (BNM), the ministry of transport (MOT), JPJ, Insurance Services Malaysia (ISM), Puspakom and Malaysian Takaful Association (MTA) on the issue of total loss vehicles.
“We support RTD’s initiative to enforce stringent checks on repaired accident damaged vehicles and strongly advocate for transparency in ensuring that only vehicles deemed safe and fit for road use are allowed back into service,” the association wrote in its release.
“Our primary concern is the safety of all road users, and as such, it is crucial that the vehicles declared BER by insurers, is assessed and repaired appropriately, with all necessary documentation including the roadworthiness certification by a credible vehicle inspection provider before the vehicles are permitted on the road,” it added.
BER refers to the condition of a damaged motor vehicle which is repairable but not financially feasible to be repaired or restored to a roadworthy condition – repair costs exceed the vehicle’s market value of sum insured.
There’s also Actual Total Loss (ATL) that refers to vehicles that have sustained severe damage which has compromised the structural integrity of the main chassis or to an extent that repairing or restoring it to a safe state is not possible.
Vehicle owners are encouraged to ensure that their vehicles are adequately insured, either by considering options from insurers or returning to the original insurer that declared the BER vehicle. For vehicles declared as ATL, the association says insurance or takaful operators must report to the JPJ, managing the registration card and overseeing disposal.
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If puspakom is doing those checks then what’s the point? Workshop will engage make up agents again
My neighbour’s SubaruXV went into a ditch.Not too badly damaged.The “adjuster” insisted to treat it as total loss,dingdong here n there,in the end,win win..my neighbour got fair compensation and adjuster with his cartel do the magic…thats how total loss cars r on the road in no time.
The hantu and “good samaritan” are a gang…a cartel.
But who is going to physically ensure these “totally written off” cars are off road? JPJ,Puspakom…oh no..
My brother’s sporty car rear ended. Insurance and worshop convinced him to accept total loss claim. According to jpj regulations once classified as total loss, owner need to deregister… My brother received a stern warning by insurance personnel not to do that. According to them once you agree to total loss claim, ownership belongs to company. But in jpj records its still under my brother’s name… They even went so far as to threaten legal action if he go to deregister. So why this double standard? Is there aloop hole in law thats being exploited? Transport ministry need to study this issue.