How to make a third party insurance or takaful claim (comprehensive guideline)

There are few things that you need to know when making a third party insurance/Takaful claim

First thing first we need to understand who are actually the thirdy party?

Third party means the other party that actually involved in the accident. According to Malaysia’s law every single motorized vehicle must have at least third party insurance policy.It covers
you against third party claims for injury or death in the event of accident.Instead of that it also cover against losses or damages to the third party’s Property that cause by your
vehicle.

When you can file a third party claim?

You can file a third party claim when you are involved in the accident which is not your fault and the third party needs to pay for the damages.The damages that can be claimed
from third party insurance

1. Bodily injure or death
2. Your property ( Example car ran in to your house/shop) or to your car.

If you claim from third party insurance/takaful , your NCD wont be affected.

What to do if you involved in the accident that caused by you ( your fault)

In this scenario the the third party has the right to file a third party claim against you. It depends on the policy they can claim from your insurance company directly or their insurance
company will act on their behalf.

As usual you will have to do police report and notify your insurer about he accident. You don’t have to worry about the claim from the third party because the insurance company
will handle the tedious part of the process.They will contact you if they need more information for the claim process.

Since you only have third party coverage then you will have to pay for you own damage.

What to do if you are involved in the accident that caused by third party ( not your fault)

The process would be pretty similar , you need to do police report within 24 hours after the accident. You also need to inform your insurance company about the accident.Unlike
comprehensive coverage , the insurance company will not act on your behalf. You yourself needs to arrange in filing claims against the third party.

Usually if you only have third party insurance , you will need to pay the repair cost and then file the third party claim against other party.The process is going to be tedious because you
need all documents necessary to be submitted by both parties and their insurance company needs to agree to bear the cost of the damage.It may takes weeks or month before the whole process can be completed.

Procedure in filing third party claim

1. Police report within 24 hours
2. Send the car to panel workshop of other party insurance ( Very importat)
3. Appoint adjuster to evaluate cost of the damages to your vehicle.

– The adjuster will prepare the report regarding the damage of the vehicle. Instead of that adjuser also will estimate how long you will not able to use your vehicle. The specific term
would be “Loss of Use” or CART ( Compensation for actual repair time).The third party insurance company will pay you money to cover the loss on not to able to use your vehicle. The report usually will take around 7-14 days and you will have to pay first the cost upfront. Usualy you can use your own adjuster or you can use adjuster that assigned by the workshop.

4. Send all documents needed to the third party insurance company.

Documents needed:

  • Original copy of the police report made by you
  • The Keputusan report issued by the police department
  • Copy of your NRIC
  • Copy of your driver’s license
  • Car registration card
  • Adjuster report including bill of repair cost for your car (or your damaged property)
  • Photo if any, of the damaged car (or property)

5. If there are lot of money involved then it is advisable to hire a lawyer to act on your behalf in claiming
from third party insurance company.

Loss of use of CART Table

You can actually claim for Compensation for the Actual Repair Time (CART). The third party insurance company will compensate you for the loss of use of vehicle.It will estimate the number of days to have the vehicle repaired.Please bear in mind loss of use is calculated on the days where all documents completely submitted and approved by insurance company.It will not compensate when the vehicle left stationary in the workshop after the accident.

Credit : ibanding.com
How to make a third party insurance or takaful claim (comprehensive guideline)

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