Assuming your car is insured on a comprehensive insurance cover…. What if you were knocked by a vehicle that is licensed for commercial purposes, and specifically for hire or reward? Examples of such vehicle is taxis, buses and “A” permit….
There are two options under such circumstances :
Option (1) File a third party insurance claim. Submit all relevant documents (including police investigation report) to the third party insurer. If you do not have the details of the third party’s insurer, you will need to run a JPJ search (if your workshop has experience in dealing with cases like this, they will be able to assist you to run the search as well as the documentation required). Meantime, you will have to pay for all the repair work first.
In the meantime, do hire an independent licensed Loss Adjuster who will prepare a report on the extent of the damage and the Loss of Use of your vehicle. Loss of Use is information on the estimated repair time but does not include any waiting time; i.e. delay in obtaining spare parts, etc. The report will take about seven to fourteen days depending on the extent of the damages. You can hire a Loss Adjuster directly or through your workshop’s contacts. The fee is based on a schedule. Some may tend to inflate the cost of repair but this is not ethical and may put you in difficulties during negotiation…. Anyway the third party insurer will send a representative to verify the damages claimed.
The Downsides. Settling your repair bills yourself before proceeding with the rest of the tasks is already a setback.
Handling tasks may likely be difficult if the third party failed to report the accident to their insurer. This is common because the driver may not want to alert his or her employer over the incident if the damage to the vehicle is minor, and the driver is not about to pay the summons either. Somehow or rather there are going to be lots of resistance at this stage….
From another perspective, the driver or the third party Insured may refuse to admit fault on their part; this may likely pose severe challenges for you. The police may need longer time completing their investigation…. and in a more extreme situation the police may have to retain both cars for indepth investigation.
Issue may compound further if the the third party did not report the claim to their insurer. Another day, Another stumbling block…. Nevertheless, with full documentation including the outcome of police investigation being in your favour then the process to full settlement would be made easier.
Nonetheless the upside to things, your NCB is maintained.
Option 2) File a Own Damage claim. Bring your car to your insurer’s panel workshop and your insurer will pay for the damage. There is no worry about payment.
The Downsides. There is no provision for OD-KfK reprieval in the case where third party vehicle is a commercial vehicles for hire or reward. Henceforth your NCB will have to start from 0% on renewal of your motor insurance.
Nevertheless, you can proceed to search out the third party’s insurer and file for some of the recoverables from them…., namely, Loss of NCD, Loss Adjusters’ charges, Loss of Use of your car and even for some out-of-pocket expenses, like betterment although there may be challenges posed by the third party’s insurer.
“…. filing for loss of NCD, loss if use of car during the actual repairs and some out-of-pocket expenses are what follows on Option 2.”
We will not want to recommends the first option as the procedure is tedious unless the third party insurer is already known and the third party had reported to both their insurer and the police, then it is worthwhile for Option 1 as you get to keep your NCB, especially if it is already at 55%. The degree of cooperation on the part of the third party is paramount important, please gauge this aspect before deciding on Option 1.
Most people choose the easiest way out, opting for the least inconvenience as much as possible especially under the urge of their panel workshop. Panel workshop usually prefer Option 2, it makes the tasks lot more easier.
“Upon discovery that NCD is lost and being asked for a higher premium on renewal, most policyholders would start arguing that those claim options were not explained to them. The bottom line is, it is never an easy way to deal with accidents of this nature, but if you handle it properly from the start, it’ll save you from a rude awakening when you renew your insurance.”
“….different standards applied to insurance claims for private and public vehicles. Accordingly they are both assessed separately. Public vehicles especially those that are being used for hire and reward are on the road frequently and hence, the possibility of being involved in an accident is higher. This translates to higher risk which prompted insurance companies to deal with them separately. Likewise, the premiums for both types of vehicles are different and claims dealings are equally different….”
Do note some of the comments and quotes were taken from the following link: http://www.loyarburok.com/2012/12/11/accidental-lessons/