While the internet is still raining praises on the Royal Malaysian Police’s (PDRM) swift arrests of both suspects in the Proton Waja drama that happened last week, others were impressed by the Perodua Myvi’s composure in the video when the Waja was doing its best to ram it aside. But, the question remains, what of the Myvi’s repairs? Can the owner claim insurance?
From what we can see in the viral video, the Myvi sustained the most damage when the Waja was desperately trying to squeeze between the Myvi and a Tesco delivery truck to escape PDRM.
Repair costs will definitely be high and most of us would expect that the Myvi owner will have to claim his/ her own insurance or takaful and have their hard-earned No-Claim Discount (NCD) deducted for the repairs.
But according to the Etiqa blog, that’s not the case. The Myvi owner can put in a claim as Knock-for-Knock Own Damage (KFK-OD) and this claim would not affect the owner’s NCD.
What is Knock-for-Knock Own Damage?
KFK-OD can only be claimed if the accident was not caused by the Myvi owner. This is usually hard to prove but, in this case, videos have already gone viral so the Myvi owner has plenty of evidence that the damage to the car was not caused by another party.
For KFK-OD, the insurance or takaful will not affect the NCD value of the Myvi driver. But this also depends on a few points listed below:
- The Myvi’s insurance or takaful is still valid during the time of accident
- A police report must be made within 24 hours of the accident
- The owner must contact the insurance / takaful provider within 14 days of the accident
How much will the Myvi owner be able to claim?
The amount that can be claimed depends on the insurance / takaful plan the owner purchased. Depending on the plan, the owner can claim according to the vehicle’s Agreed Value or Market Value.
If the value of the Myvi when new is RM 45,000.
The owner chooses to renew their insurance / takaful plan based on the Agreed Value of the vehicle in the second year. For this case, the Myvi agreed value in its second year is RM 42,000.
So, in an accident case like the Waja crash, the Myvi owner can make a claim of up to RM 42,000.
If the owner decides to renew their insurance / takaful plan based on the market value, even though the price of the vehicle was renewed at RM 42,000, the owner might not be able to claim the same amount.
If during the accident, the market value of the Myvi has dropped to RM 40,000, then, unfortunately, the Myvi owner can only claim RM 40,000 according to the market value of the vehicle.
The stated value in this article is purely an example, the total value might be different as it also depends on the terms and conditions listed by the insurance / takaful company.