Road accidents can occur at any time and to anyone, regardless of whether or not you are the one behind the wheel. Your negligence, or that of others, can affect several parties.

What should you do if an accident occurs because of your own mistake? Can you claim for any damage you cause?

When it comes to car insurance, there are several types of claims you could consider, such as third-party accident, knock-for-knock, and own-damage claims.

The latter refers to a claim for damage to, or loss of, your own vehicle covered by car insurance, owing to negligence or fault on your part.

Say you accidentally caused significant damage to your car while reversing out of your driveway. You could then use your own-damage insurance coverage to cover the repair cost.

Here are more questions, asked and answered, about own-damage claims.

1. Are you really eligible for a claim if you’re the one at fault?

In Malaysia, car insurance coverage is divided into three types: comprehensive; third-party, fire and theft; and third-party.

If you caused an accident and wished to make a claim to repair the damage, you could do so by filing an own-damage claim. However, this can only be made under the following conditions:

• your car insurance policy is still valid/active, and
• you are the holder of a comprehensive policy that provides coverage for yourself and third parties.

In essence, only cars protected by comprehensive or first-party insurance can make an own-damage claim. But do note that doing so would result in the loss of your no claim discount (NCD) or no claims bonus, causing it to be reset to 0% during your policy renewal the following year.

If your car is covered by third-party insurance, you cannot make an own-damage claim. You would then need to bear all repair costs on your own.

2. What about the other party?

Any party that has been affected by the accident can also make a claim under your insurance policy. Whether you have comprehensive car insurance or third-party coverage, the affected party does not need to make a claim for own damage because the accident was not their fault.

Once the affected party makes a claim under your policy, you will automatically lose your NCD for the following year, causing your premium to be higher when you renew your insurance.

That said, there are situations where you will not lose your NCD even if you make a claim for own damage:

• non-fault damage: this refers to accidents that were not caused by your negligence, as verified by the police;
• car mirror insurance: if you have additional coverage for car mirrors, your NCD will not be affected even if you make this claim.

3. How do you make a claim?

• Assess the damage

First, assess the extent of the damage to your vehicle. Contact your insurance company if the damage is severe and you require a tow truck.

• Take photos

Document the accident scene through photos, including damage to your car and other vehicles involved.

• Record important details

Take down important information about the parties involved, such as full names, phone numbers, IC numbers, vehicle registration numbers, road tax details, and any other relevant info.

• Make a police report

Bring your car to the nearest police station to make a report. To avoid your claim being rejected by the insurance company, this must be made within 24 hours of the accident.

• Repair your car

Take your car to the insurance company’s panel workshop for repairs to be carried out under your own-damage claim. Prepare the necessary documents for the claims process, including:

• original copy of the police report;
• insurance policy (cover note);
• copy of IC and driver’s licence;
• copy of vehicle ownership certificate (car grant);
• photos of the accident; and
• a diagram sketch provided by the police.

4. What situations allow you to make a claim?

• Collision with an object

If your car is damaged due to a collision with an object such as a tree, lamp post or pole, you can make an own-damage claim. Again, bear in mind that your NCD will be affected and reset to 0% the following year.

• Collision with an animal

If your car collides with an animal while driving, you can claim for own damage.

• Broken car mirrors

You can make a claim if your car side mirrors are cracked, broken, or damaged, even if you don’t have additional mirror coverage. In this case, your NCD will be reset to 0%.

As stated above, you can make these claims without affecting NCD if you have additional car mirror coverage. Also bear in mind that own-damage claims can only be made if you have comprehensive or first-party coverage.

Having a general understanding of insurance will allow your claims to be processed smoothly, reducing the chances of rejection by your insurance company. So, if your policy is nearing its expiration date, do make sure to renew it promptly.

This article was written by Hariz Hafiz for Qoala Malaysia.