Bank Negara Malaysia (BNM) has updated its Claims Settlement Practices Policy Document (PDCSP) to simplify procedures, enhance service standards, and accelerate approvals for motor insurance claims, making the process faster and more transparent for motorists.
According to Lailatul Akma, Deputy Director of BNM’s Consumer & Market Conduct Department, the central bank collaborated with insurers, the Ministry of Transport, JPJ, Puspakom, and repairers to revise the policy. The updated framework aims to cut turnaround times for claims and provide clearer expectations for insurers.
Key improvements include:
Faster Claims Processing: The revised policy reduces timelines for own damage claims by 20 working days and theft claims by 80 working days, effectively halving the average settlement time.
Digital Submissions: Motorists can now submit claims online through the Digital Roadside Assistance (DRA) via insurer apps or websites, streamlining the process to just a few clicks.
Customer Service Charter: Insurers are required to publish a motor customer service charter detailing service standards, claim process timelines, and criteria for expedited claims, allowing motorists to hold providers accountable.
24/7 Roadside Assistance: All insurance companies must provide round-the-clock roadside support to reduce reliance on unauthorised tow services.
Own Damage Knock-For-Knock (OD-KFK) Option: Motorists not at fault in an accident can claim directly through their own comprehensive insurance provider by submitting a police report and required documents, simplifying the reimbursement process.
“The revised policy ensures motorists are no longer left waiting in the dark,” said Lailatul. “With faster turnaround times, accessible online claims, and clear service standards, BNM aims to enhance fairness, transparency, and efficiency in motor insurance settlements.”
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