How to Claim Third-Party Car Insurance in Malaysia: Step-by-Step Guide
Summary: If another driver is at fault, you claim from their insurer, not yours, so your NCD stays intact. Third-party claims depend on the other insurer confirming liability, which can take weeks. Lodge your police report within 24 hours, keep your documents organised, and ask about an Own Damage Knock-for-Knock (OD-KFK) claim if you have comprehensive cover and the accident didn't involve a bus, taxi, or injury.
Being hit by another driver is stressful. Unlike your own damage claim, a third-party claim involves claiming from the at-fault driver's insurer. This can take longer due to investigations and liability confirmation. Understanding the process, documents required, and timeline is key to making the experience manageable.
What Is a Third-Party Claim?
A third-party claim means you're claiming compensation from the other driver's insurer for damage to your car, instead of claiming under your own policy.
Advantage: Your NCD isn't touched.
Disadvantage: You're relying on another company's timeline and approval process, so it's usually slower than claiming through your own insurer.
Step-by-Step Process
Collect evidence at the scene. Take photos of all vehicles, number plates, damage, road conditions, and traffic signs. Note the other driver's details and any witnesses.
File a police report within 24 hours. Keep your report number and the investigating officer's details.
Submit your claim to the third-party insurer. You'll need the police report, vehicle details, repair estimate, and photos. The insurer may ask for more information to confirm liability.
Vehicle assessment. An adjuster will assess your car's damage before repairs are approved. This is usually coordinated through the insurer or panel workshop rather than something you arrange and pay for independently.
Procedures differ between insurers, so check with the third-party insurer before sending your car for repair.
Why Third-Party Claims Take Longer, and What’s Changing
Delays usually come down to liability disputes, repair costs you may need to pay upfront before claiming back, and longer waiting times compared to Own Damage claims.
The good news: Bank Negara Malaysia (BNM) has said the reforms are expected to cut third-party property damage claim processing time by up to 80 working days, on top of faster own damage claims. If your claim is taking unusually long, you can escalate to the Financial Markets Ombudsman Service (FMOS) once you've gone through your insurer's internal complaints process.
Tip: If the other party is clearly at fault and you have comprehensive insurance, an OD-KFK claim is usually faster and also protects your NCD. Note that OD-KFK doesn't apply if the accident involves a bus or taxi, or if anyone is injured — those cases still go through the at-fault driver's insurer.
Learn how an OD-KFK claim works.
Drive+ Support
Drive+ members get extra help when making a claim:
Step-by-step guidance and follow-up through PolicyStreet's Customer Service channel (PolicyStreet guides the process but doesn't submit claims on your behalf)
Priority support for car insurance renewals
Up to RM360 worth of Loyalty Rewards per year, including up to RM120 off road tax renewal, depending on your membership tier
Drive+ membership starts from RM49.90 a year. See the full terms for tier details and conditions.
Conclusion
Third-party claims in Malaysia work, but they take patience — and that's slowly improving under BNM's latest reforms. Collecting the right documents early and understanding the process helps it move faster. Make sure your car insurance is comprehensive before your next renewal, so an OD-KFK claim is an option if you ever need it.
Compare car insurance plans on PolicyStreet.
Frequently Asked Questions
1. Who pays in a third-party claim?
The at-fault driver's insurer. You may need to pay repair costs upfront and claim reimbursement later; procedures vary between insurers.
2. Is a police report required for third-party claims?
Yes. It's a legal requirement within 24 hours of the accident, and it's essential for establishing liability.
3. Is a third-party claim faster than an OD-KFK claim?
No. Third-party claims usually take longer because they depend on another insurer confirming liability.
4. How long does a third-party claim usually take?
It varies by case complexity and insurer, though BNM's 2025 reforms aim to shorten this. Ask your insurer for an expected timeline when you submit your claim.
6. What if the third-party insurer rejects my claim?
You can raise a complaint with the insurer first. If unresolved, you may escalate to the Financial Markets Ombudsman Service (FMOS).
7. Does a third-party claim affect my NCD?
No. Since you're claiming against the other driver's insurer, your own NCD is not affected.
