In this article, we explain the Waiver of Betterment add-on. We will help you understand what this add-on is all about and if you need it. In the event of an accident, we often worry if the condition of our car will be good after the repair is done. A car which has been involved in an accident will most likely be less durable over time due to the effects of the damage. This causes the overall quality of the car to reduce and leads to car owners being unsatisfied. In most cases, they will consider selling off their car to get a new one.
The reason repaired cars become less durable is because most insurance coverage only covers for the cost of using second-hand spare parts in the repair work. The only way to solve this problem is to use brand new spare parts as replacement. This is called ‘betterment’ where the policyholder may choose to pay extra to use brand new spare parts to replace the damaged parts. Let us explain how you can get a waiver for the betterment charges by simply applying an add-on to your insurance policy.
What Is The Waiver Of Betterment Add-On?
Waiver of betterment is an add-on that waives the betterment charges in car repair works due to an accident. You can buy this add-on as an addition to your regular car insurance as it does not come with your insurance plan. A regular car insurance pays the cost of repair after an accident. However, if the car is old and new parts are used to repair the car, then the car is in better condition than before. This is called “betterment” and you pay for it extra. To avoid these extra charges, you can buy “Waiver of Betterment” Add-on, so you do not pay for new parts. You will no longer have to worry of getting second-hand parts in the repair work or pay extra for any betterment charges.
Here are some examples :
Example 1 : Body Part Damaged
You own a 6 year old Honda Civic and got into an accident.
Rear bumper is crushed from the accident
Left side door has a huge dent due to the accident
With the Waiver of Betterment add-on, the panel workshop mechanic will replace a brand new rear bumper and a brand new side door for you. The mechanic will NOT use any second hand bumpers or doors to repair your car.
Example 2 : Engine Part Damaged
You own a 7 year old Toyota Vios and got into an accident.
Gearbox is damaged due to accident
Clutch pads are damaged due to accident
With the Waiver of Betterment add-on, the panel workshop mechanic will replace a brand new gearbox and clutch pads for you. The mechanic will NOT use any second-hand gearbox or second-hand clutch pads to repair your car.
Example 3 : MSIG Waiver of Betterment
Here is an example of how MSIG compares an insurance plan with and without the waiver of betterment add-on :
In summary, here is an overview from us. The table shows what happens with and without the waiver of betterment add-on.
Motor Insurance Companies That Offer Waiver of Betterment?
Is Waiver of Betterment Similar To Maintain Like New?
The Waiver of Betterment is similar to Maintain Like New add-on from Etiqa. Both of these add-ons are somewhat similar. However, there is one very notable difference between both these add-ons.
The ‘Waiver of Betterment’ add-on is only available by some insurance companies in Malaysia. This add-on only comes with brand new spare parts for repair works. It does not include a whole car repaint after the repair work. You will most likely only get the affected area repainted after the repair work is done instead of a whole car repaint.
On the other hand, the ‘Maintain Like New’ add-on is only available in Etiqa Motor Takaful and Insurance plans. Despite the brand new spare parts, this add-on also comes with a whole car repaint if your car is between 5 to 10 years of age. Your car will not only have the affected area repainted, but the whole car will be repainted instead. As a result, your whole car might appear to be like new due to the new coat of paint.
Who Is Eligible For This Add-On?
The table shows an overview of who is eligible and not eligible for the add-on depending on the age of your car. Take a quick look.
Is The Waiver Of Betterment Add-On Worth It?
Verdict : Yes.
In short, yes. It is worth having this add-ons. Let us explain why.
When your car is involved in an accident and is towed to the workshop, the panel workshop mechanic will inform you on the list of parts that will be replaced. If your car is aged 5 years and above, you will only be eligible for second-hand car parts to replace the damaged parts.
Using second-hand parts will most likely make your car weaker compared to using brand new spare parts. In most cases, second-hand parts will be worn out by the time they need to be used on your car. This causes your car to be weaker as the parts may not last that long. With the ‘Waiver Of Betterment’ add-on, you will be eligible for brand new spare parts during the repair work. This guarantees that your car will be in good condition after the repair. In most cases, the condition of the car might be even better than before the accident repair work started.
Therefore, it is our opinion that this is a worthwhile add-on. In fact, it is a must-have for those who can afford it, because it can save the you a lot of stress and hassle after an accident.
We hope that you have a better idea of what the ‘Waiver of Betterment’ add-on is all about by now. In short, if you have a car that is between 5 and 10 years old, get this add-on.