Got involved in an accident caused by fault of other road users? Here’s How to Make a Third-Party Claim in Malaysia
You were driving carefully, obeying the rules of the road, when another driver crashed into you. Your vehicle is damaged, you may be injured, and now you’re faced with the daunting task of figuring out how to get compensated.
If the accident was not your fault, you have the right to make a third-party claim — a claim against the insurance policy of the driver who caused the accident. You should not have to pay out of pocket for someone else’s negligence, and you should not have to make a claim on your own policy and risk losing your No-Claim Discount (NCD).
This guide walks you through everything you need to know about making a third-party motor insurance claim in Malaysia, step by step.
What Is a Third-Party Claim?
In motor insurance, the term “third party” refers to someone other than you (the first party) and your insurer (the second party). When you make a third-party claim, you are claiming compensation directly from the at-fault driver’s insurance company, rather than from your own insurer.
This is important because:
- Your own No-Claim Discount (NCD) is not affected — since you are not claiming on your own policy
- The at-fault driver’s insurer bears the cost of compensating you
- It places financial responsibility squarely on the party who caused the accident
Third-party claims can cover vehicle repair costs, personal injury, medical expenses, and in tragic cases, compensation for death.
Before You Do Anything: At the Accident Scene
How you handle the moments immediately after an accident has a significant impact on the success of any future claim. Stay calm and take the following steps:
Do not admit fault or apologise, even casually. Any admission of liability — even a polite “sorry” — can be used against you later.
Exchange information with the other driver. Collect:
- Full name and IC (identity card) number
- Contact number
- Vehicle registration number
- Insurance company name and policy number (if they are willing to share)
Document everything at the scene. Use your phone to photograph:
- Both vehicles and the damage sustained
- The position of the vehicles before they are moved
- Skid marks, road signs, traffic lights, and any other relevant surroundings
- Injuries you or your passengers have sustained
Speak to witnesses. If bystanders saw what happened, politely request their name and contact number. Independent witness accounts can be extremely valuable if the other driver disputes liability.
Call the police if necessary. Under Malaysian law, you are required to report a road accident to the police. Even if the other party tries to negotiate an out-of-court settlement at the scene, it is strongly advisable to file a police report — this protects you legally and supports your insurance claim.
Step-by-Step: Making Your Third-Party Claim
Step 1: Lodge a Police Report
File your police report as soon as possible, and ideally within 24 hours of the accident. Visit the nearest police station and provide a clear, factual account of what happened. Obtain a copy of the police report — you will need it throughout the claims process.
Be accurate and consistent in your account. Any discrepancies between your police report and your later insurance claim can create complications.
Step 2: Seek Medical Attention
Even if you feel fine initially, visit a doctor or hospital promptly. Some injuries — particularly whiplash, soft tissue damage, and internal injuries — may not be immediately apparent. A medical report obtained early is far more credible than one sought days or weeks after the accident.
Keep all receipts for consultation fees, medication, treatment, and any transport costs related to your medical care.
Step 3: Get a Repair Estimate for Your Vehicle
Take your vehicle to a reputable workshop and obtain a written repair estimate. Do not commence repairs yet — the at-fault party’s insurer will typically want to send their own assessor or approve repairs before work begins.
If your vehicle is not roadworthy after the accident, you may also be entitled to claim loss of use compensation for the period your vehicle is off the road. Keep records of any alternative transport costs incurred.
Step 4: Notify Your Own Insurer
Even though you intend to claim from the other party’s insurer, you should still inform your own insurance company about the accident. This is usually a policy requirement, and failing to do so could cause issues with your coverage. Your own insurer may also be able to assist you in pursuing the third-party claim.
Step 5: Contact the At-Fault Driver’s Insurer
Armed with your police report, photographs, medical documentation, and repair estimate, contact the other driver’s insurance company to register your third-party claim. You will typically need to provide:
- Your police report
- Your identity card (IC) or driving licence
- Vehicle registration documents (Geran)
- Photographs of the accident and damage
- The repair estimate from your workshop
- Medical reports and receipts (if claiming for personal injury)
- Witness statements (if available)
The insurer will assign a claims adjuster to investigate the circumstances of the accident and assess the quantum of your claim.
Step 6: The Assessment and Negotiation Process
The claims adjuster from the at-fault driver’s insurer will evaluate the evidence and determine liability. If liability is clear and not disputed, the process tends to move relatively smoothly. If the other driver’s insurer disputes their client’s fault — or if fault is shared — negotiations may be required.
During this stage:
- Respond to requests for information promptly
- Keep copies of all correspondence
- Do not accept a settlement offer hastily if you believe it undervalues your losses
- Seek independent advice if you are unsure whether an offer is fair
Step 7: Settlement or Legal Action
Once liability and quantum are agreed, the insurer will issue a settlement offer. Review it carefully against your actual losses before accepting.
If the insurer refuses to settle, disputes liability unfairly, or offers inadequate compensation, you have the option to escalate the matter. In Malaysia, you can:
- File a complaint with Bank Negara Malaysia (BNM) via the Integrated Financial Industry and Business Operations System (IFFIAS) or the BNM LINK portal
- Refer your dispute to the Ombudsman for Financial Services (OFS), which provides free, independent dispute resolution for insurance matters
- Seek legal advice and pursue the matter through the courts
What Can You Claim For?
A successful third-party claim can include compensation for a range of losses, depending on the circumstances:
Vehicle damage — the cost of repairing your vehicle to its pre-accident condition, or its market value if the vehicle is declared a total loss.
Loss of use — compensation for being without your vehicle during the repair period, often calculated based on reasonable alternative transport costs or a daily rate.
Personal injury — general damages for pain, suffering, and loss of amenity, as well as special damages covering medical expenses, rehabilitation costs, and loss of earnings if your injury prevented you from working.
Passenger injuries — your passengers who were injured may also have their own rights to claim compensation.
Death and dependency claims — in the tragic event of a fatality, the deceased’s dependants may be entitled to claim compensation under the Civil Law Act 1956.
Common Mistakes to Avoid
Admitting fault at the scene. As mentioned, never apologise or accept blame, even if you feel it was polite to do so. Let the evidence and the insurers determine liability.
Failing to lodge a police report. This is both a legal obligation and a practical necessity for any insurance claim.
Delaying medical treatment. Gaps in medical records can be used to challenge the severity of your injuries.
Accepting the first settlement offer without scrutiny. Insurers aim to settle claims efficiently, but their first offer may not fully reflect your actual losses. Take your time to review it carefully.
Repairing your vehicle before the insurer’s assessment. Always obtain approval before commencing repairs, or the insurer may dispute the costs.
Losing track of your documents. Keep every receipt, report, photograph, and piece of correspondence in a safe, organised place throughout the claims process.
What If Both Parties Share Fault?
Malaysian law operates on the principle of contributory negligence. This means that if both drivers were partially at fault — for example, if you were slightly speeding but the other driver ran a red light — compensation may be reduced proportionately based on your share of the fault.
In such cases, the final settlement will reflect each party’s degree of responsibility as determined by the insurers or, if necessary, the courts.
Protecting Yourself for the Future
This experience is a reminder of the importance of having the right motor insurance in place. While a standard third-party policy is the minimum legal requirement in Malaysia, it only covers damage or injury you cause to others — it does not cover your own vehicle or your own injuries.
A comprehensive motor insurance policy provides far broader protection, covering your own vehicle damage regardless of who is at fault. It also typically includes:
- Own damage cover
- Windscreen cover
- Special perils cover (flood, storm damage)
- Personal accident benefits for the driver
- Passenger liability cover
Review your current policy with your insurer or agent to ensure your coverage matches your actual needs and the value of your vehicle.
Key Takeaways
- A third-party claim lets you seek compensation from the at-fault driver’s insurer without affecting your own NCD
- Always lodge a police report and seek medical attention promptly after an accident
- Document everything — photographs, witness details, receipts, and medical records all strengthen your claim
- Do not admit fault, accept premature settlements, or repair your vehicle before the insurer’s assessment
- If your claim is disputed unfairly, the Ombudsman for Financial Services (OFS) and Bank Negara Malaysia provide accessible escalation routes
- Consider upgrading to a comprehensive motor insurance policy for fuller protection on the road
