Should I buy Waiver of Betterment Contribution?

Waiver of Betterment Contribution is an add-on coverage that you can buy. But before we discuss about this add-on benefit, let us talk about betterment first. So, what is betterment?

Betterment is a term used when your car after repair is in a better position before repair. How can this happen? This is possible when your car is replaced with brand new part, instead of used-part. Example, your car before accident is already 10 year old, thus all parts and fitting of the car is actually 10 year old too. If you send for repair and it get replaced with brand new original part, that mean your car is now actually better than it original condition prior to the accident.

Insurance is about getting you back to your original position prior to the loss. Thus, if your car’s part is already 10 years old before an accident, your insurance is supposed to bring you back to its condition (10 year old). If new parts is used, then your insurance company will apply betterment charges to you depending on vehicle age.

Vehicle AgeRate of Betterment
Less than 5 Years0%
515%
620%
725%
830%
935%
10 and above40%

For vehicle age more than 5 years, insurance company usually advice you to send to their Panel Workshop for repair after accident. These panel workshop will repair or replace with similar part and no betterment will be charged. However, if you insist of replacing your damaged part with original parts, betterment will then be applied.

So, knowing about betterment now, you can actually add-on Wavier of betterment Contribution, and upon accident, have your vehicle replaced with new parts instead of used/re-condition parts.

Now, we shall discussed if you should buy this add-on (Wavier of Betterment Contribution).

You need to realize that there are times where used part may not be readily available for your vehicle model, and repairer are force to use new, original part to repair your vehicle, otherwise, your vehicle may be struck at the workshop for month due to lack of parts.

If your car model is those not very common on the road, and it is more than 5 years old, you are advice to take up this wavier of betterment contribution as it is very likely that used parts is not readily available.

Or you are those who only wanted the best and original parts on your car, then with this wavier of betterment contribution added, you can have your car repaired at your brand service centre and replaced with new original parts.

Can I claim insurance if my friend drove off my car and never return?

You have just taken ownership of a new car and was showing to your friends. As a new car owner, you invite your friend to test drive your car. Each of your friends take turn to drive it around, and you are so proud. You did not sit in the car when your friends took it for a round. After few round of driving, you too forgotten who actually is driving your car. Half and hour later, you realize that it has taken longer than expected. You start asking around who is driving your car? You then realize that a friend of your friends, whom you also know, but not too closed has drove off your car and cant be contacted now.

You started to get worried after few hours of not able to contact him, and you decided to make a police report for a stolen car. You too contacted your insurance agent to lodge a claim, since your comprehensive insurance cover loss from theft.

However, you are shock to be told that your insurance does not cover for such loss as it was not stolen, but a case of breach of trust. You are deceived by your friend, and you willingly hand-over your keys to other party whom you trusted. Your insurance policy has this exclusion clause that read:

Cheating or Criminal Breach of Trust
Any loss or damage, including theft, caused by or attributed to the act of Cheating or Criminal Breach of Trust by any person

So, your insurance will not cover for such losses. Below is a actual case study that was brought to OFS :

BACKGROUND
The participant’s claim for loss of his vehicle was repudiated by the takaful operator on the ground that the claim falls within the exclusion of the
certificate’s provision, i.e. the loss was due to ‘Cheating/Criminal Breach of Trust’ as defined in the Penal Code.

INVESTIGATION AND FINDINGS
It was observed that:
i) The takaful operator’s decision was based on the terms and conditions of the certificate which states as follows:
– ‘We will not pay for the following losses:
(ix) Any loss or damage, including theft, caused by or attributed to the act of cheating or criminal breach of trust by any person.’
– Criminal breach of trust is defined in paragraph 8 of Section F of the certificate as follows:
Criminal breach of trust
This follows the meaning as defined under Section 405 of the Penal Code:
Whoever, being in any manner entrusted with property, or with any dominion over property, either solely or jointly with any other person dishonestly misappropriates, or converts to his own use, that property, or dishonestly uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any legal contract, express or implied, which he has made touching the discharge of such trust, or wilfully suffers any other person so to do, commits ‘criminal breach of trust.’

ii) Findings by the loss adjuster:
– The insured vehicle was handed over by the participant to his friend, Mr A, voluntarily when he went for holiday during Hari Raya.
– Mr A subsequently surrendered the insured vehicle together with the car key to Mr C for safekeeping as he also went for holiday.
– Mr A realised that Mr C had absconded with the vehicle after he returned from holiday as he was unable to locate Mr C and the insured vehicle.
– Mr A and Mr C were known to each other as ‘friends’ for some time.

RECOMMENDATION
Based on the facts and circumstances of the case, the Case Manager was of the view that the takaful operator had repudiated the claim in accordance with the terms and conditions of the certificate on the following grounds:
i) The loss of the insured vehicle was not a theft as the vehicle was voluntarily handed over to a Mr C. Mr A had committed a breach of entrustment by surrendering the insured vehicle and its key to Mr C who absconded with the vehicle.
ii) The participant failed to establish that the loss was a peril that is payable and not excluded by the certificate. Based on the investigation carried out by the loss adjuster, the loss is attributable to criminal breach of trust which is an event excluded by clause 1(b)(ix) of Section A of the certificate.

should you renew insurance yourself or through an agent?

Many people are now connected and comfortable conducting their business online, online banking, e-commence, online ordering of food, hotel booking, purchase of air tickets etc, so what is renewing insurance online?

This site allow instant renewal of your motor insurance, and soon will expand to include other insurance services such as travel insurance, fire insurance, Personal Accident etc So, if you are comfortable of renewing insurance online, you can get your insurance sorted fast without hunting for an agent’s office. Renew your insurance anytime and anywhere.

But there are incidents that you will need agent to assist you, such as transfer your NCD from another car to your new car, extending your car insurance for a few month to facilitate sale of the car, pass endorsement to add additional name driver, withdraw your NCD for another car etc

Also, there are time you cannot renew your insurance online due to some specific reason such as lapsed policy, high risk vehicle, company registered vehicle, special classes, such as Taxi, A-permit, C-permit, tour bus, school bus etc. These will usually need agent to quote and issue. At anytime you need help, reach out to us at 016 3333 513, and we will assist you.

If you are confident of renewing online yourselves, then go ahead and get your cover note issued instantly without waiting for us to manual send you a quote. Bear in mind, this is a website build by us whom are agents representing a few insurers.

By renewing insurance online through our site, you get instant cover note and servicing of an agent. Any mistake or assistance needed, you can also contact us for help.

Top 5 general insurers in Malaysia

There are about 22 general insurance companies in Malaysia. Some focus more on motor insurance, well other maybe are not so interested in motor insurance. But, motor insurance is highest premium contributor at about 48%, followed by fire insurance at about 19%.

Based on figures from PIAM (General Insurance Association of Malaysia), the following are the Top 5 Insurers in Malaysia for year 2019 for the motor insurance. Knowing the top 5 general insurers in Malaysia will help you to decide who you should insured your car insurance with.

Top 1 – Allianz General Insurance (16.3%)

Top 2 – AmGeneral (15.2%)

Top 3 – AXA Affin General (8.9%)

Top 4 – MSIG (7.3%)

Top 5 – Zurich General (6.6%)

Interestingly, the top 5 insurers already commanded over 54% of the total motor insurance market. Leaving the remaining 43% among the 17 insurers. Thus, if you are looking for insurer to insured your vehicle. Consider these Top 5, they are among the top for a reason. Either they are actively promoting themselves as a serious insurer or their service level must be good to be able to remain at the top position.

If you are comparing insurers, do not just look at price only. Pricing should not be the considering factors, you should also consider the following:

  1. Reputation – Insurer who promptly pay out claim without delay
  2. High service level – Insurer who are able to respond to you quickly
  3. Superior product – Added features, road assist, towing mileage etc
  4. Nationwide Network – Good choice of Panel workshops
  5. Financial Strength – Ability to pay fast

Like buying a car, you cannot expect the price of a proton and performance of an Audi. They are designed for different needs. Proton is build for the economy usage, easy available of parts while Audi is about speed, control and respond. Thus, if you can afford, stick to the more reputable insurers for a better piece of mind.

If you are not sure whom you should insure with, consult your agent, they would be in a better position to advice you. Sometime, you can get thing done faster and better with their professional help. This bring the next topic, should you renew insurance yourself or through an agent?

Why is the insurance premium for a same car difference?

You may have been asking around, and realized that every insurance company quote you differently although the coverage is the same. This is because Bank Negara Malaysia has actually started to de-tariff the general insurance, meaning that the insurance company are now allow to set the premium as they wish due to market condition.

In the past, general insurance is tariff, meaning that Bank Negara fixed the rate, thus, all insurance company will quote the same premium for a same coverage. But now, with the de-tariff, insurance company has a free hand on how much their wish to charge as long as it is within the allowed range.

This actually make sense and allow more competition to benefit the consumer. You now can shop around to find a insurer that suit you. Similarly to telco, you will have difference needs and lifestyle, thus, no one plan suit all coverage.

With the flexibility to determine the insurance premium, insurance company can now offer innovative products or add-on for extra premium, thus, allowing insurance company to differentiate themselves.

Different insurance company will have different risk appetite and risk strategies. Their evaluation of risk profile & weightage will affect the overall premium. Generally, insurance company will take the following consideration:

  • Driver Age
  • Driver Gender
  • marriage status
  • Location
  • Car model
  • Car age
  • etc

So, based on a driver profile, insurance company will offer their premium to provider coverage. But it is not just you – the driver. There are about 20+ general insurance companies in Malaysia, and each insurer has it strength and coverage etc. A leading insurer with many branches, support network, panel workshop all over Malaysia can definitely charge a higher premium. An insurer with well recognized branding and high service level can also command a higher premium. Thus, customer should not just compare premium.

It is like buying a car. A reputable and reliable brand with many service centres and high resell value will cost more compared to a smaller brand with limited features and low resell value.

If pricing is your main concern, then, by all means look for the cheapest, since it is your priority, but if you are not too cost sensitive, then, we suggest you insured with the top 5 insurers in Malaysia. They became Top 5 insurer for a reason. Read here if you wish to know the Top 5 insurers in Malaysia

What you should do in the event of an accident/loss

Accident does happen, don’t get overly upset. With million of cars on the road, it is sometime unavoidable, thus the importance of motor insurance. You will soon get back to your original position. So, stay claim and let your insurance help you get back in your feet.

Take notes of the accident – If you are involved in a motor accident, take notes of the accident, i.e. the names and addresses of all drivers and passengers involved, vehicle registration numbers, make and model of each vehicle involved, the drivers’ licence numbers and insurance identification as well as the names and addresses of as many witnesses as possible.

Take photos of the surrounding, your cars as well as other’s party, road conditions, junctions etc. Remember the road name, traffic direction etc. These will be helpful when making a police report later.

Make a police report – You are required by law to lodge a police report within 24 hours of a road accident. Unless you are seriously injured and was hospitalized then you can make a police report when you are able to. Otherwise, the general rule 24 hours. Check the jurisdiction of the traffic police station. Every traffic station has its own area of jurisdiction, so avoid going to station that is not under their jurisdiction.

Inform your insurance – Notify your insurance as soon as possible. If you have a agent, notify your agent is equal to notifying your insurance company as the agent represent the insurance company. They can advice you the next course of action. Get your car towed if it is severely damaged and need towing. ONLY have your car towed by authorized tow truck arranged by your insurer. NOT anyone claimed to represent your insurer. Call 15500 accident assist or your specific insurer care-line and wait for the specific tow truck to arrive. Read HERE why you should not get anyone to tow your car.

Repair at Panel Workshop – You must send your damaged vehicle to a workshop approved by your insurance company. If the accident occurs during office hours, you may call the hotline/ emergency assistance numbers provided by your insurance company. Otherwise, you may call your insurance company for the nearest approved workshop. Should the accident occur outside office hours and you are making a claim against your policy, i.e. an own damage claim, you should ensure that your vehicle is towed to your insurer panel workshop. See Insurer Panel workshop list here.

If only your car is less than 5 years old, you can send to franchise workshop like Honda, Toyota, Mercedes, Proton, Perodua.

Making a claim against an insurance company

When you are involved in an accident, you may either make an own damage claim or a third party claim:

Own damage claim
• This refers to making a claim on your own insurance policy, i.e. you have a comprehensive policy. However, you will lose your NCD entitlement.
• In notifying your insurance company of the accident, enquire about the names of approved workshops to send your vehicle for repair.
• Submit the fully completed Motor Accident Report Form together with all supporting documents as soon as possible to your insurance company.
• The workshop will commence repairs on your vehicle upon the approval of your insurance company.
• Upon completion of repairs, you will be informed by the workshop to collect your vehicle.

Third party claim
• You may make a third party claim if you are not the party at fault in the accident and you can retain your NCD entitlement.
• There are two ways of making a third party claim, i.e. submit the claim directly to the insurance company of the party at fault or, if you have a comprehensive policy, submit the claim to your insurance company under ODKFK (Own Damage, Knock for Knock). You are encouraged to submit your claim to your own insurance company for speedier claims processing.
• As the third party claimant, you are required to mitigate your loss i.e. you must act to minimise your loss.
• Appoint a licensed adjuster to assess the loss. The workshop or the third party insurance company may advise you on this.
• Submit the adjuster’s report and the fully completed Motor Accident Report Form together with all supporting documents as soon as possible.
• You are eligible to claim from the third party insurance company for `compensation for actual repair time’ (CART) and compensation of excess.

For the actual repair time of your vehicle, this is based on the adjuster’s recommendation on the number of days required for your car to be repaired. Insurance companies, at their own discretion, may allow an additional seven working days for any unforeseen or unavoidable delay.