Whereas automobile insurance coverage is obligatory in Malaysia, there are various incidents the place it’s discovered the opposite driver/automobile is uninsured within the occasion of an accident. So, the query is requested, what occurs subsequent?

We spoke to our associates 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 isn’t new, however each forwarded totally different viewpoints and opinions on such an occasion.

“Abang, it’s like this, should you don’t have insurance coverage, you’re breaking the legislation, easy as that. There isn’t a excuse. Identical goes with not having a licence or street 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 firms to course of the claims based on the details within the report, or the courts if the accident includes harm or loss of life,” he mentioned in a matter of truth tone.

On the opposite aspect 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 will have 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 throughout the interval of insurance coverage cowl. “Overlook concerning the NCD, you will have first celebration insurance coverage cowl to deal with any injury to your automobile, irrespective of who causes it, your self, the opposite driver, some random stray canine crossing the road,” he mentioned.

Explaining additional, our buddy says, “no have to cry if an accident occurs. So long as nobody is harm, simply do an personal injury (OD) declare.” Elaborating on the injury to 1’s automobile attributable to an uninsured driver, our insurance coverage buddy says, “robust luck, it’s what it’s, the issue is one in every of enforcement however that’s outdoors my (insurance coverage firm’s) management. I can’t power anybody to purchase insurance coverage however you because the automobile proprietor is required to take action by legislation.”

“This Malaysian fixation on the NCD is unnecessary. You’ve gotten an accident, simply declare. It’s only a automobile,” he provides. “If this have been my automobile, I might let the legislation cope with the opposite driver, and I might let my insurance coverage cope with the restore and betterment of my automobile, if any,” he elaborated.

“For those who lose your NCD after 5 years of driving, however the accident requires your automobile get a repaint, say your complete 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 facility spec paint, all unique elements, the place are you going to get that for that value? Have you ever checked the value for a headlight or tail gentle currently?”

As for the Malaysian preoccupation with resale worth, he says, “sure, the resale worth of the automobile is affected if there’s an accident which is why I at all times inform my shoppers 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 automobile.”

“After all nobody desires to have an accident, insured driver or not,” he says, “however generally it’s unavoidable and as accountable street customers, we must always have enough insurance coverage protection.” Noting the case of third celebration insurance coverage, he says should you solely have third celebration 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 nasty flip of occasions.

“You then’re out of luck. If the opposite man has no insurance coverage and is at fault, and also you solely have third celebration insurance coverage, then you definitely’re by yourself,” he says. That’s the reason complete insurance coverage must be bought every time and wherever doable, excluding the case of basic 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 firms to file a declare towards one another for reimbursement the place relevant.

“Both means, 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 could be an already aggravating scenario,” says our insurance coverage business contact.

As for submitting a civil declare, our insurance coverage good friend says that’s at all times an choice, besides it prices money and time, plus discovering a reliable lawyer to tackle the case. “In case you have the time and the cash to spend, nice,” says our buddy, “if not, simply declare towards your coverage and be achieved with it.”

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