Whereas automobile insurance coverage is obligatory in Malaysia, there are lots of incidents the place it’s discovered the opposite driver/automotive is uninsured within the occasion of an accident. So, the query is requested, what occurs subsequent?
We spoke to our mates in each the police Visitors Investigation and Enforcement Division (JSPT) and our buddy within the normal insurance coverage business specialising in automobile insurance coverage. Most of what they instructed us is just not new, however each forwarded completely different viewpoints and opinions on such an occasion.
“Abang, it’s like this, should you don’t have insurance coverage, you’re breaking the regulation, easy as that. There isn’t a excuse. Similar goes with not having a licence or highway tax, which makes your insurance coverage invalid instantly,” mentioned our JSPT contact. “For police, it’s clear, terus saman (straight summons),” he mentioned.
“As to whose fault it’s within the accident, after JSPT completes the investigation, the report is issued to all events involved,” he added.” “After that it’s as much as the insurance coverage corporations to course of the claims in response to the info within the report, or the courts if the accident includes harm or loss of life,” he mentioned in a matter of reality tone.
On the opposite facet of the difficulty, from the insurance coverage perspective, our insurance coverage business buddy, with over 20 years within the automobile insurance coverage section, mentioned a lot the identical factor. “Yeah, should you get hit by somebody with out insurance coverage, you have got little recourse for compensation,” he defined.
“Other than the police saman, which actually prices nothing within the grand scheme of issues, there’s nothing else you are able to do,” he mentioned, “besides file a civil swimsuit.” “The issue with many Malaysian drivers is that this preoccupation with the NCD (No Claims Low cost),” he provides.
The NCD is given as a “bonus” by the insurance coverage firm to the insurer for not making a declare through the interval of insurance coverage cowl. “Overlook concerning the NCD, you have got first get together insurance coverage cowl to care for any harm to your automotive, regardless of who causes it, your self, the opposite driver, some random stray canine crossing the road,” he mentioned.
Explaining additional, our buddy says, “no must cry if an accident occurs. So long as nobody is damage, simply do an personal harm (OD) declare.” Elaborating on the harm to at least one’s automobile attributable to an uninsured driver, our insurance coverage buddy says, “robust luck, it’s what it’s, the issue is considered one of enforcement however that’s outdoors my (insurance coverage firm’s) management. I can not drive anybody to purchase insurance coverage however you because the automobile proprietor is required to take action by regulation.”
“This Malaysian fixation on the NCD is not sensible. You may have an accident, simply declare. It’s only a automotive,” he provides. “If this have been my automobile, I’d let the regulation cope with the opposite driver, and I’d let my insurance coverage cope with the restore and betterment of my automobile, if any,” he elaborated.
“If you happen to lose your NCD after 5 years of driving, however the accident requires your automotive get a repaint, say your whole NCD misplaced is RM2,000… inform me, what sort of paint job are you going to get for RM2,000? However, you file an accident or OD declare, the automobile will get despatched to an accredited producer 4S centre, you get the manufacturing unit spec paint, all authentic components, the place are you going to get that for that value? Have you ever checked the worth for a headlight or tail mild recently?”
As for the Malaysian preoccupation with resale worth, he says, “sure, the resale worth of the automotive is affected if there’s an accident which is why I at all times inform my purchasers to go to both the producer’s 4S centre, or a good store.” He provides, “on the finish of the day, it’s only a automotive.”
“In fact nobody desires to have an accident, insured driver or not,” he says, “however typically it’s unavoidable and as accountable highway customers, we should always have sufficient insurance coverage protection.” Noting the case of third get together insurance coverage, he says should you solely have third get together insurance coverage which covers claims introduced by one other however doesn’t cowl your individual automobile, and the opposite driver has no insurance coverage, then that’s a foul flip of occasions.
“Then you definitely’re out of luck. If the opposite man has no insurance coverage and is at fault, and also you solely have third get together insurance coverage, then you definitely’re by yourself,” he says. That’s the reason complete insurance coverage ought to be bought at any time when and wherever potential, excluding the case of traditional and classic automobiles he mentioned.
“The opposite case is OD knock-for-knock (KFK) claims,” he says. That is the place each events will declare towards their respective coverage no matter who’s at fault, and it’s left to the insurance coverage corporations to file a declare towards one another for reimbursement the place relevant.
“Both approach, as the patron, let the insurance coverage firm cope with it, that’s what your coverage is for. You don’t want extra stress in what may be an already aggravating state of affairs,” says our insurance coverage business contact.
As for submitting a civil declare, our insurance coverage good friend says that’s at all times an possibility, besides it prices money and time, plus discovering a reliable lawyer to tackle the case. “When you’ve got the time and the cash to spend, nice,” says our buddy, “if not, simply declare towards your coverage and be performed with it.”
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