Disagreeing with the Adjuster: How to Appeal a Low Repair Estimate

As of 2025, the Ombudsman for Financial Services has merged into the Financial Markets Ombudsman Service (FMOS). This new body handles insurance disputes of up to RM250,000 in most cases (motor third-party property damage claims have a separate, lower threshold of RM10,000).

If you believe your insurer is under-calculating your claim, FMOS uses an "inquisitorial approach" — they don't just wait for evidence; they actively investigate the fairness of the offer.

Car Repair and Maintenance Workshop

Betterment: The "Hidden" Cost

For cars older than 5 years, adjusters often apply Betterment. This means if they fit a brand-new original part on your old car, you have to pay a percentage of the part's cost — because your car is now considered "better" than it was before the accident. According to the industry-standard Betterment rate table, this charge can go up to 40% for cars aged 10 years and above.

How PolicyStreet Can Guide You

Step-by-Step Claim Guidance: Drive+ members get personalised, step-by-step support when submitting an insurance claim through our Customer Service channel.
Priority Renewal Support: Drive+ members also get priority assistance for car insurance renewals.

Note: PolicyStreet does not submit claims on your behalf or provide legal advice. For disputes, FMOS or a qualified professional is the right channel.

Get your quote with PolicyStreet, and if you need assistance, contact our customer service via WhatsApp.

Frequently Asked Questions:

1. 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.

2. 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 FMOS first.

3. 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.