The 2026 Shift: From OFS to FMOS
As of 2025, the Ombudsman for Financial Services has merged into the Financial Markets Ombudsman Service (FMOS). This new body handles disputes up to RM250,000.
If you believe your insurer is under-calculating your claim, the FMOS uses an "inquisitorial approach". They don't just wait for evidence; they actively investigate the fairness of the offer.
Betterment: The "Hidden" Cost
For cars older than 5 years, adjusters often apply Betterment. This means if they put a brand-new original part on your old car, you must pay a percentage (up to 40% for 10-year-old cars) because your car is now "better" than it was before the accident.
PolicyStreet: Your Reliable Expert
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Talk to a PolicyStreet expert about your claim today.
Frequently Asked Questions:
What is a car insurance adjuster?
An adjuster is an independent professional (or insurance employee) who investigates claims to determine the extent of the insurer's liability and the cost of repairs.
Can I sue my insurance company over a low estimate?
You can, but it's expensive and slow. Most Malaysians find better success escalating the issue to the OFS first.
What is "Betterment" in insurance?
If your car is older than 5 years and the repair uses brand-new original parts, you may have to pay a percentage of the part's cost because your car is being "improved" beyond its pre-accident state.
How long does an adjuster have to finish the report?
Under PIAM guidelines, adjusters should typically complete their assessment within 2-4 working days of receiving all necessary documents.
