This Policy Document sets out the minimum standards on handling and assessing general insurance and general takaful claims which must be met by licensed insurers carrying on general business and licensed takaful operators carrying on general takaful business (ITOs), as well as registered adjusters.
This Policy Document aims to:
(a) ensure fair, transparent and timely outcomes in claims settlement practices;
(b) set requirements and expectations for ITOs and registered adjusters to observe high standards of sound and responsible business conduct in the claim settlement process; and
(c) set requirements and expectations on ITOs with respect to their in-house assessors’ roles in carrying out objective assessments on motor insurance/takaful claims.
Given the various stakeholders involved in the claims settlement process, this Policy Document also addresses requirements and expectations around ITOs’ interactions with these stakeholders. This includes consumers, ITOs’ management of related or third-party service providers that deal with consumers during the claims settlement process.
This Policy Document also promotes wider adoption of digital solutions by ITOs to reduce frictions, enhance efficiencies and improve customer experience. For instance, the deployment of end-to-end digital claims solutions can potentially address long-standing customer pain points following a motor vehicle accident, by reducing long waiting times and documentary burdens to support their claims. This in turn will facilitate better management of claims costs and containment of fraud risk(s) by ITOs and contribute to continued access to affordable motor insurance/takaful by consumers in the long run.
The provisions in this Policy Document are in line with Bank Negara Malaysia (BNM)’s Financial Sector Blueprint 2022-2026 aspiration for ITOs to advance reforms that will transform the motor claims ecosystem to achieve the desired outcomes of timeliness, transparency and transformative customer experience.
This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking
