Claiming against another driver: third-party claims and the Ombudsman
When the other driver is at fault, you usually have a choice between claiming against them and claiming from your own insurer. Here is how each route works, and where to go if the outcome is disputed.
If another driver damages your car and the accident was clearly not your fault, you are not limited to pursuing a claim against that driver's insurer. Malaysian motor insurers and takaful operators are all signatories to a Knock-for-Knock arrangement that lets you claim from your own insurer instead, in many cases with real practical advantages. Knowing the difference matters before you decide which route to take, and knowing where to escalate a dispute matters if either route goes wrong.
Your two options after a not-at-fault accident
If there are no commercial vehicles involved, nobody is hurt, and a police report confirms the accident was not your fault, you generally have two ways to get your car repaired:
- Third-Party Property Damage (TPPD), where you claim against the other driver's insurer for the damage they caused.
- Own Damage, Knock-for-Knock (OD-KFK), where you claim from your own comprehensive insurer instead, even though the accident was not your fault.
Why OD-KFK is usually the more convenient route
Under the industry-wide Knock-for-Knock Agreement, signed by insurers and takaful operators in Malaysia, you deal directly with your own insurer rather than the other party's. That means you do not need to appoint your own claims adjuster to negotiate compensation, and you typically avoid the longer process that can come with pursuing a claim through someone else's insurer. Importantly, if the accident was confirmed by the police report to be the other driver's fault, claiming under OD-KFK does not cost you your No Claim Discount — the discount that reduces your premium for every claim-free year, and which otherwise resets when you make a claim.
OD-KFK only applies where you were not at fault; if you damaged your own car through your own carelessness, that is a standard Own Damage claim, a different category with different NCD consequences, and the "Knock-for-Knock" label does not apply to it.
What to check before choosing a route
- Whether your policy is comprehensive. OD-KFK generally requires you to hold comprehensive cover on your own vehicle; a third-party-only policy has no "own damage" component to claim under.
- Whether the police report clearly attributes fault to the other driver. This is usually the key document that supports either route.
- The condition of the other vehicles involved. Commercial vehicles, hire-and-drive cars, or injuries change which process applies and can rule out a straightforward OD-KFK claim.
- Agreed value versus market value on your own policy, since this determines your payout if your car is deemed a total loss regardless of which route you claim through.
If you disagree with how your claim was handled
If your own insurer's or takaful operator's assessment, offer, or claim decision does not satisfy you, the process is to raise it formally rather than assume the decision is final:
- Lodge a written complaint with the Complaints Unit of your insurance company or takaful operator first. State the policy or certificate number, vehicle registration, relevant dates, and attach supporting documents.
- If the Complaints Unit's decision still does not resolve it, escalate to the Financial Markets Ombudsman Service (FMOS) — the body that succeeded the former Ombudsman for Financial Services and now also covers what SIDREC used to handle, resolving disputes between financial consumers and their insurer, takaful operator or other financial service provider.
- Act within the time limit. A dispute should be brought to FMOS within six months of the date of the insurer's or takaful operator's final decision letter.
- FMOS's dispute resolution service is free to consumers, and where it decides in your favour, the financial service provider is bound by that decision.
FMOS's scope covers insurance and takaful disputes, alongside banking and capital market matters, and it works through a case management stage followed, if unresolved, by an adjudication stage. It is a genuine alternative to going to court for a dispute over a claim decision, not a substitute for the insurer's own complaints process, which you should exhaust first.
A word of caution
Be alert to messages or websites that misuse the names or logos of the Ombudsman or other regulators to appear official — genuine dispute resolution through FMOS is free, and you should only use FMOS's own verified contact channels if you decide to escalate a complaint.
Talk to an advisor
Choosing between a third-party claim and an OD-KFK claim, and knowing when and how to escalate a dispute, is easier with someone who has handled motor claims before. A licensed advisor matched through this portal can talk you through your options after an accident, and our assistant can explain the claims process for your specific policy.
Sources
This content is educational information from a licensed advisor, not financial advice. Product details vary by insurer — verify specifics with an advisor.
