| "Theft claim will be settled based
on the market value of the vehicle at the time of loss, or the Sum
Insured, whichever is lower" |
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Types of Motor Policies and Coverage
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There are basically three types of motor policies
namely Third Party Cover, Third Party Fire & Theft Cover and
Comprehensive Cover.
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Third Party Cover - indemnifies the Insured
against legal liability arising from both bodily injury and property
damage to third party. This plan excludes protection for accidental
damage, theft or fire suffered by the insured's vehicle.
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Third Party Fire & Theft Cover - provides
cover as in "Third Party Cover", and also indemnifies
the Insured in the event that the Insured's vehicle is stolen or
damaged by fire.
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Comprehensive Cover - provides covers as in "Third
Party Fire & Theft Cover", plus physical damage to the
Insured's vehicle following accidental collision or over-turning.
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The theft protection offered in motor policies
cover different circumstances in which vehicle theft can occur.
In general, loss of vehicles due to accidental theft can be described
as an incident in which a vehicle is unlawfully taken away from
the insured party. If someone authorized by the vehicle owner uses
the vehicle for a certain time and disappears with it, then it
is not a straightforward theft claim. Such instances are excluded
in a standard motor policy and hence the theft claim will most
likely be rejected. Theft claims can also be rejected if the insurer
or police suspect foul play or negligence on the part of the driver.
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Note that theft claim will be settled based
on the market value of the vehicle at the time of loss, or the
Sum Insured, whichever is lower. As such, if the vehicle is under-insured,
the settlement will be based on the Sum Insured, likewise if the
vehicle is over-insured, the settlement will then depend on the
prevailing Market Value.
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Insurers do not compensate for loss of personal
belongings such as cash or valuable items left in the vehicle.
As such, vehicle owners must ensure that they do not leave their
personal belongings in the vehicle.
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| Making a theft claim |
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The process of making a theft claim is almost
similar to making an ordinary accident claim but making a theft
claim usually requires longer processing time. The period given
by Bank Negara Malaysia is stipulated to be processed within six
months. However, in most cases, claims are settled as soon as the
theft investigation is finalised without any irregularities being
detected and all documents required for claims processing with
payment have been processed.
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| In the event your vehicle is stolen/loss: |
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Report to the police within 24 hours as required by Law and
obtain a copy of the police report. |
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Collect the claim form from your insurance company. Complete,
sign accordingly and submit the claim form with supporting
documents stated below. |
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Original police report |
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Original certificate of insurance |
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Original vehicle registration card |
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Copies of Identity card and driving license of the
insured |
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Copies of Identity card and driving license of the
driver |
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Copy of Hire purchase agreement (if any) |
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Two sets of original vehicle keys |
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Two copies of JPJ's Transfer Form K3 (transfer of vehicle
ownership form to be completed by registered owner) and
Lampiran A1 (letter of indemnity) |
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Letter of release from the hire purchase company (if
any) |
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JPJ's Lampiran B duly signed and certified by a Commissioner
for Oaths (for certification of owner's identity card) |
Note: Some insurers may require additional or fewer supporting
documents |
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Insurers are required to finalise a theft claim,
either approve or reject it within six months from the date of
submission or when the police closes the investigation file, whichever
is earlier.
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After a vehicle theft claim is submitted to
the insurer, there are two possible outcomes, the police may recover
the vehicle or the insurer may decide to settle the claim based
on advice from the police.
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If your vehicle is recovered by the police before
the six-month time frame is up or prior to the settlement of the
claim, you should channel the said recovery information to the
insurance company for further advice on appropriate action. You
will have options to either:-
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Withdraw the claim (if the vehicle is recovered in good condition) |
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Withdraw the claim and undertake the repair at your own expense
(if the vehicle sustained minor damage and you wish to retain
your No Claim Discount (NCD) entitlement) |
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Withdraw the Theft Claim but pursue with Own Damage (OD)
Claim (if vehicle recovered sustained extensive damage or has
missing parts). If you pursue with OD, your NCD entitlement
will be affected. |
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If the vehicle is not recovered by the police
within six months from the date of the submitted theft claim, the
insurer can settle the claim or reject it based on valid grounds.
Generally, insurers would be able to decide whether the claim should
be accepted or rejected by obtaining substantial information from
the police investigations and adjuster findings. If the six months
have passed and the insurer decides to reject the theft claim,
it is required to inform you of it. You can then appeal to the
insurer or refer the matter to the Financial Mediation Bureau.
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Keep in mind that each insurer will have its
own procedures governing the claims process. If you have any uncertainties
on making a claim, contact your insurer for more details.
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While insurance coverage for vehicle theft protect
motorists with comprehensive policies, motorists should always
be cautious and ensure that their vehicle is protected with vehicle
alarm as well as gear and steering locks. Immobilisers or tracking
system can also be installed for extra protection.
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