Why Car Insurance Claims Sometimes Take So Long in Malaysia

Summary: Car insurance claims in Malaysia can feel slow because they depend on several outside parties — the police (for the accident report and fault outcome), spare parts suppliers, and an independent adjuster — not just your insurer. Official BNM standards actually require fairly fast turnarounds (claims decisions within 5 working days, repairs starting within 15 working days of approval), so if your claim is dragging well past that, it's worth asking your insurer why.

You've just been in a minor fender-bender. You did everything right — exchanged details, snapped photos, filed a police report. But three weeks later, your car is still sitting in the workshop with no clear answer on when it'll be ready. Here's what's actually happening behind the scenes.

1. The Police Report & Result Bottleneck

Under Section 52 of the Road Transport Act 1987, you must lodge a police report within 24 hours of an accident. But your insurer usually can't approve repairs until they receive the "Keputusan Repot" — the official police outcome confirming who was at fault. This can take the investigating officer anywhere from a few days to over a week to finalise, and without it, the insurer's hands are tied.

2. Spare Parts Availability & Inflation

This is one of the more common causes of long workshop stays. If you drive a newer or less common model, parts may not be stocked locally — waiting for a part to ship from overseas can add weeks. Insurers may also take extra time to verify repair cost estimates as parts prices continue to rise.

3. The Adjuster’s Inspection

Once the workshop submits a repair estimate, the insurer sends an independent adjuster to verify the damage before approving it. During peak periods, adjusters can face backlogs. If your car is at a non-panel workshop, this takes even longer, since the insurer also needs to verify the workshop's credentials first.

What BNM's Official Standards Actually Say

Under BNM's Policy Document on Claims Settlement Practices, insurers are required to decide on straightforward motor Own Damage claims within 5 working days, and begin repairs within 15 working days of approval. The 60-working-day timeline you may have heard of applies specifically to theft claim investigations, not standard accident repairs.

BNM has also been tightening this further: under the Own Damage Knock-for-Knock (OD-KFK) reform, faultless drivers can now claim repairs directly from their own insurer (without waiting on the third-party insurer) if the police report confirms they weren't at fault, and their NCD stays intact. This can cut OD claim processing time by around 20 working days.

How to Fast Track Your Insurance Claim

• Use e-Police Reporting if eligible: PDRM's e-Police Reporting pilot lets you file online for accidents on the PLUS highway — but only if it's a single-vehicle accident with no injuries and no damage to another vehicle or public property. Check the criteria before relying on it.

• Stick to panel workshops: They use a shared digital claims system with the insurer, allowing instant submission of photos and estimates.

• Consider CART cover: Compensation for Assessed Repair Time pays you a daily cash amount while your car is in the shop. Exact amounts and coverage days vary by insurer, so check your policy schedule.

Renew Smarter to Avoid Future Stress

The best way to handle a claim well is to renew with an insurer that responds quickly in the first place. When you renew via PolicyStreet, you get access to a curated list of insurers plus support through the claims process. PolicyStreet's Drive+ membership also offers road tax discounts and other perks depending on your tier.

Check the current tier benefits on our Terms and Conditions before renewing, as exact amounts per tier may be updated from time to time.

Frequently Asked Questions

1. How long does a car insurance claim usually take in Malaysia?

Under BNM standards, straightforward OD claims should get a decision within 5 working days, with repairs starting within 15 working days of approval. Complex cases or theft claims can take longer (up to 60 working days for theft investigation decisions).

2. What is "Keputusan Repot" and why does my claim wait for it?

It's the police's official outcome on who was at fault. Insurers generally need this before approving repairs, especially for third-party claims.

3. Do I really need to file a police report within 24 hours?

Yes. It's a legal requirement under Section 52 of the Road Transport Act 1987, and most insurers require it before processing your claim.

4. What is e-Police Reporting and can I use it for any PLUS highway accident?

e-Police Reporting is PDRM's online reporting pilot, but it only applies to single-vehicle accidents with no injuries and no damage to other vehicles or property.

5. What is CART and is it worth adding to my policy?

CART (Compensation for Assessed Repair Time) pays you a daily cash amount while your car is being repaired, based on the adjuster's assessed repair time. It's worth considering if you rely on your car daily, but confirm the exact daily rate with your insurer.

6. Why do non-panel workshops take longer to process claims?

The insurer needs to separately verify the workshop's credentials before approving repairs, on top of the usual adjuster inspection.

7. Can I do anything myself to speed up the process?

Submit your police report, photos, and documents promptly, use a panel workshop where possible, and follow up with your insurer if the claim exceeds BNM's standard turnaround times.