, Malaysia
205 view s
/Freepik

Bank Negara sets new claims standards for insurers

It also promotes the adoption of digital solutions to enhance efficiency.

The Bank Negara Malaysia (central bank) released the Policy Document on Claims Settlement Practices (PD CSP), which unveils the insurance industry’s minimum standards when handling and assessing claims (general and general takaful).

The PD CSP aims to ensure fair, transparent, and timely claims settlements by imposing regulatory requirements and expectations. 

It also promotes the adoption of digital solutions to enhance efficiency, reduce fraud risk, and improve customer experience, thereby maintaining affordable motor insurance and takaful for consumers.

Key enhancements include:

  • Clear roles and responsibilities for Board and Senior Management in claims settlement.
  • Mandatory display of a Motor Consumer Service Charter (MCSC) outlining expected turnaround times.
  • Shortened turnaround times for motor and non-motor claims.
  • Transparency in motor repair estimates.
  • High standards of professionalism for in-house assessors.
  • Guidance on Own Damage Knock-for-Knock (OD KfK) claims to expedite processing.
  • Proper handling of Actual Total Loss (ATL) and Beyond Economic Repairs (BER) vehicles.
  • Fair treatment for consumers purchasing BER vehicles.

The policy is effective from 2 January 2025, with certain provisions starting on 1 July 2024.

Follow the link s for more news on

Join Insurance Asia community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Income-Allianz failed merger shows popular opinion is king
The deal faced backlash from Singaporeans who thought it betrayed Income’s social mission.
Filipino gamers hold promise for FWD
The insurer plans to support other games and aspects of the gaming ecosystem beyond esports.