BNM recommends strategies to improve motor claims process

Bank Negara Malaysia (BNM) recommends that insurers and takaful operators provide motorists with a standardised guide on the appropriate steps to take with regard to motor policies in case of an accident.

It views such effort as among the strategies to render the motor claims process more efficient for motorists.

"These guides are also available on the websites of insurers and takaful operators," it noted in its Annual Report 2019 released today, which also featured a deliberation on "Improving the Motor Claims Process".

In 2013, the insurance industry came together to establish Accident Assist (1300-22-11-88), a helpline that provides around-the-clock roadside assistance whereby callers could also enquire about coverage and claims procedures.

Another strategy recommended by BNM is for the industry to further simplify and rationalise internal processes for managing claims.

"BNM is reviewing its existing standards on timelines to be met by insurers and takaful operators in processing claims. The aim is to reduce the time taken by leveraging on better information and disclosures," it said.

In this regard, BNM backs efforts by the industry to establish a central database on the costs of motor parts and repair times and to promote consistency in the quality of repairs.

"BNM also continues to provide a regulatory environment that encourages the industry to adopt digital solutions to further shorten claims turnaround times,” it said.

Thirdly, BNM asserts that public sector agencies involved in overseeing the transportation and motor sectors in Malaysia also have a critical role to play.

“Effective regulation and enforcement to promote professional conduct and prohibit fraud and abuse are key to protecting the integrity of motor repairs, treatment of injury and the claims process.

“For instance, setting and enforcing clear minimum standards for repairs will elevate the overall level of professionalism of workshops, increase consumer confidence and minimise the scope for disputes during claims settlements.

“These arrangements are supported by industry agreements and legislative changes, which define responsibilities of relevant parties to conduct pre-inspection of the damaged vehicle(s) prior to repairs, and govern the apportionment of liability to the parties involved in an accident,” the central bank pointed out.

It said an effective dispute resolution mechanism involving independent arbiters to resolve any grievances was also critical.

“For claimants, this means quicker claims processing, trustworthy repairs, and swift financial relief in the event of injury,” it added.

- Bernama