Own Damage Knock For Knock Claims Is Nothing New

---

 
RECENTLY, there were several media reports with headings such as “BNM: Faultless drivers can claim repairs without losing NCD”, and “No more long waits: Motorists will soon be able to claim direct from their insurer without losing NCD, says Bank Negara”.
Bank Negara Malaysia Consumer and Market Conduct Department deputy director Lailatul Akma Mohd Shukor said accidents involving buses, taxis, or cases where injuries occur still require claims to be made through the third-party insurer, as own damage claim in these cases could result in losing the no claim discount (NCD).
On Aug 13, my letter “Poor decisions justified by misleading media report” was published in Focus Malaysia.
I was prompted to write after reading a newspaper report that a senior citizen complained that he had lost his NCD after making an own-damage claim in an accident in which the other driver was at fault.
I pointed out that he could have made an “own damage knock-for-knock” (OD-KFK) claim, or been advised by the workshop to do so. I have made several such claims without losing the NCD, but lost it later when my car collided with a motorcycle that sped across my path.
The investigation officer wanted to know exactly who had crashed into whom. I replied that the motorcycle crashed into my car, and so I was not summoned.
However, the workshop supervisor informed me that if motorcyclists are injured, even if slightly, the no claim discount will no longer be granted upon renewal.
After enjoying 55% NCD for over a decade, I lost it not because of a cat or a dog that sprinted across my path, but because of a speeding motorcyclist. Mercifully, the insured value of my old car is low.

Otherwise, the full motor premium would be substantial for a new car with insured value 10 to 20 times more.
Now, back to OD-KFK. The concept is nothing new. As far back as 1987, all insurance and takaful companies in Malaysia signed the revised Knock-for-Knock agreement and revised it in 2001.
However, recent reports gave the impression that it is something new or will be introduced soon. 
YS Chan is master trainer for Mesra Malaysia and Travel and Tours Enhancement Course and an Asean Tourism Master Trainer. He is also a tourism and transport business consultant.
The views expressed are solely of the author and do not necessarily reflect those of  MMKtT.
- Focus Malaysia.

---