New Rules Let Drivers Claim Own Insurance Without NCD Impact

Samuel Chua

2nd September 2025 - 3 min read

Motorists who are not at fault in road accidents can now make claims directly from their own insurer without affecting their No-Claim Discount (NCD). The requirement is part of a revised motor insurance claims policy introduced by Bank Negara Malaysia (BNM).

The initiative, known as the Own Damage Knock-for-Knock (OD-KFK) option, applies to drivers with comprehensive motor insurance. Instead of waiting for the at-fault driver’s insurer, policyholders may repair their vehicles through their own insurance company.

According to BNM’s Consumer and Market Conduct Department deputy director, Lailatul Akma Mohd Shukor, this process speeds up repairs, removes the need for upfront payments, and ensures NCD protection. To use the OD-KFK option, motorists must submit a police report along with supporting documents. The insurer will then handle the claim on their behalf.

When OD-KFK Does Not Apply

While OD-KFK provides a simpler route for many drivers, it does not cover every situation. Motorists cannot use this option if the accident involves a bus, a taxi, or results in personal injuries. In these cases, claims must still be filed against the at-fault driver’s insurer.

These exclusions ensure that more complex claims, particularly those involving public transport or injury compensation, continue to be managed under the existing system.

Faster Claim Processing Times

Another key change in the revised policy is the improvement in claim turnaround times. The average processing time for own damage claims has been reduced by up to 20 working days, while third-party property damage claims can now be settled as much as 80 working days sooner.

Lailatul Akma explained that these measures are designed to give consumers clearer expectations, reduce red tape, and address long-standing concerns about lengthy delays in motor insurance claims.

Digital Roadside Assistance for Policyholders

BNM has also introduced Digital Roadside Assistance as part of the reforms. Through their insurer’s mobile apps or websites, policyholders can request authorised tow trucks, locate nearby workshops, and submit documents electronically.

The service is available 24/7 and is not limited to accidents — motorists can also request help for breakdowns such as flat tyres. By ensuring access to authorised providers, this initiative aims to protect consumers from the risks of dealing with unauthorised tow trucks while offering a safer, more transparent experience.

Independent Support for Disputes

For cases that remain unresolved, policyholders may refer their complaints to the Financial Ombudsman Service (FOS). The FOS is an independent body that provides free dispute resolution for financial consumers.

According to BNM, the broader reforms are intended to make the motor insurance claims process fairer, faster, and more transparent, while also strengthening public confidence in the system.

Exploring new motor insurance options? You can compare car insurance plans available in Malaysia via RinggitPlus’s Car Insurance section.

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