Better Insurance Plan
- What is an insurance betterment?
- What is excess?
- What is theft claims
- Bereavement Expenses
- Flood Damage
- Emergency Services
Betterment is a portion of cost you have to bear when your damaged parts are replaced with brand new, original part. In this case, you car appears to be in a better condition prior to accident. In fact, it is against the insurance principle of indemnity. Insurance is intended to indemnify your loss, and no profit should be obtainable. But, in the case of repair where old parts (damaged) are replaced with new parts, the car owner actually benefits.
Thus, as a car owner, your insurance company may require you to bear the difference in costs. Application of betterment is at the discretion of the insurance company, but should they apply for betterment, it will be according to the standard scale of betterment adopted by the industry.
For Car below 5 year – 0%
5 years – 15%
6 years – 20%
7 years – 25%
8 years – 30%
9 years – 35%
10 years and above – 40%
For vehicle age below 5 years, Insurance companies may allow you to send your damage car to franchise workshop (Car Authorised Service Centre), where your damaged part will usually be replaced by brand new original parts, but for vehicle age above 5 years, you are required to send your car to respective insurance panel workshop.
Insisting to get your damaged part replaced with brand new original parts may trigger your insurance to apply for Betterment in your claim. There could also be possible in a situation where there are no re-condition parts available, and the only option is to replaced with brand new parts, in such cases, betterment may still be applied.
Excess refers to the amount that you are require to pay as per the policy terms & conditions in respect of each and every claim payable (including cost and expenditure incurred by the insurance company to conduct, defense and settlement of any claim for the loss or damage to your vehicle, and damage to third party resulted from the accident arising out of the use of your vehicle for liability to third parties), in addition to any other excess that may be applicable. For example, the excess of your policy is RM100 and the total claim amount is RM2,000. Your car insurance company will pay out RM1,900 for the claim while you have to pay the remaining RM100.
The above refers to policy excess, that is imposed by the car insurance company. Take note that there will be Compulsory Excess Fee, in situation outlined by PIAM Motor Tariff as below:
– A person with a probationer license (“L” license).
– A person with a “P” license.
– A person below 21 years old.
– A person who is not a named driver.
This compulsory Excess is fixed at RM400.
So, check your insurance policy to see if you have an ‘excess’ on your policy, and in an unfortunate event which you have to make a claim, you will have to borne part of the claim as per your excess fee. In the event that you allow anyone to drive your vehicle as mentioned above, example, anyone below 21 years old etc, and it resulted in an insurance claim, you will be responsible for the compulsory excess of RM400.
After submission of the claim form, you must cooperate fully with your insurance company or its representative during the course of investigation of the theft claim.
In view that the police and your insurance company will require time to investigate your claim, you should receive the offer of settlement from your insurance company normally within six months from your theft notification or upon completion of the police investigations into your theft, whichever is earlier.
If your vehicle is recovered before your claim is settled, you may withdraw your claim if the vehicle is in good condition. If it is damaged, you may convert your claim into a repair claim instead. If it is seriously damaged, you may be offered a “total loss” settlement instead.
In the event the police has charged the thief and your vehicle is produced as an exhibit, you may be called to court to identify your vehicle during trial.
- In the event of an accident, the next of kin member shall be entitled to the sum up to RM500 as payment of bereavement expenses upon the demise of the member resulting from a road accident involving member’s car.
- The reimbursement shall be applicable to the member subject to the following:-
- Police Report of Accident
- Death Certificate
- Medical report
- Identity Card of Next of Kin
In the event of breakdown due to flood, the member shall be entitled to reimbursement for the towing services with additional up to a limit of RM100 only. Subject to the following conditions:-
- Vehicle is repaired at authorised service centre.
- Official receipt of the payment made by the member for the towing services.
- Auto Assist member or its authorised driver is eligible for Emergency Medical Services, provided always that the claim for the Emergency Medical Services Benefit in a particular year of membership is only made by one (1) person per Perodua vehicle.
- The Emergency Medical Benefit by Auto Assist will be in the form of reimbursement of the hospitalization fees up to RM150 a day, limited 5 days maximum (outpatient treatment shall not be covered).
- The member must provide evidence that he/she is warded for the injuries suffered arising from an accident whilst driving his car, provided the car is being repaired by authorised Perodua service centre.
- The hospitalization fees shall include the room and board charges, medical and surgery cost due to injuries suffered in the accident. Outpatient treatment cost shall not be covered.
- Documents required:-
- Medical Bill/Report
- Police Report
- Warded Slip