Road Accident Insurance Claim Guide with Uninsured Vehicle

Malaysia recorded more than 631,000 road accidents in 2024, according to reports by Royal Malaysia Police (PDRM). While insurance is legally required, accidents involving uninsured or unregistered vehicles complicate the claims process.

The General Insurance Association of Malaysia (PIAM) has raised concerns about the rising number of uninsured private vehicles, posing serious road risks.

This guide outlines key steps drivers should take after an accident, especially when uninsured vehicles are involved, and explains how to manage the insurance claim process effectively.

But first… What Is an Uninsured Vehicle?

Any car on the road at that time without a valid motor insurance policy is an uninsured vehicle. In Malaysia, it is mandated that all vehicles carry at least third-party insurance. Insurance should include damage or injury imposed on others in accidents.

A vehicle may be considered uninsured if:

• The insurance policy has expired and was not renewed.
• The car was never insured after purchase or transfer of ownership.
• The vehicle is unregistered or has a fake registration number.
• The insurance was cancelled or invalidated due to false information.

Driving without insurance violates Malaysian law and can lead to fines or license revocation. A victim may battle to get compensation via normal insurance channels. It can happen if such a car causes an accident.

What to Do Immediately After an Accident with an Uninsured Vehicle?

If you are involved in an accident with an uninsured vehicle, the claims process can be more complex. However, it is not impossible though. Here’s what you need to know:

1. Check Your Own Insurance Coverage

If you have thorough insurance, your policy may cover vehicle damage even if the other party lacks insurance. Your No Claim Discount (NCD) could be affected in some way, and you may need to make payment of an excess fee.

Your policy will not cover damage to your own vehicle in the case that only third-party insurance applies to you. You may need to pursue compensation through legal means.

2. File a Police Report

Some documentation is needed for all claims. That documentation is as a police report. File it within a time frame of 24 hours. The filing must be made after the accident occurs. This report will help in establishing faults and documenting the other vehicle being uninsured.

3. Notify Your Insurance Provider

Reach out to your insurer currently. Provide them with:

1. The police report
2. Accident photos
3. Details of the other driver and the vehicle
4. Any witness statements

Advice regarding future steps will be given for when your insurer does assess the claim.

4. Consider Legal Action

To recover the costs, you might need to consider taking legal action against the uninsured driver if your insurance does not cover the damage. A civil claim enables this, though legal fees as well as time may be involved.

5. Use Available Support Channels

Advice can be sought from these resources:

• PIAM (General Insurance Association of Malaysia) offers insurance advice to customers.
• Legal Aid Centres can provide some help for you if a claim requires pursuing
• MyCarInfo or MyJPJ App lets you check vehicle insurance status.

Will Your No Claim Discount (NCD) Be Affected?

No—if your car insurance policy includes the additional NCD protection.

Yes—if you claim through your comprehensive insurance, your No Claim Discount (NCD) will likely be reduced, even if the other driver was uninsured. This is because the claim is made under your policy.

Can I Still Claim Damages to My Car?

In Malaysia, there still are available ways for you to seek compensation if you are involved in an accident. The accident does involve an uninsured vehicle then. Here are three possible routes:

1. Claim Through Your Own Insurance

To address costs related to repair, you can submit a claim for “Own Damage (OD)” to the insurer that you have if the coverage is thorough. Even if the other driver caused the accident, this applies.

2. Take Legal Action

You can file in court a civil lawsuit directed against an uninsured driver in the event they are responsible. A lawsuit is an option if the driver refuses to pay for the damage. Even though pursuing compensation is formally enabled, legal costs and time may still be involved.

3. Apply Through the Motor Insurers’ Bureau of Malaysia (MIB)

You may be eligible to claim from the MIB in cases where the other vehicle is uninsured or the driver cannot be identified—such as in a hit-and-run. When the responsible party lacks insurance, this bureau helps accident victims toward compensation recovery.

Reduce Risk Through Responsible Vehicle Ownership

Accidents with vehicles uninsured may create stress financially plus legal issues. Prevention offers the finest way toward avoiding those issues. Responsible ownership also helps.

All Malaysia vehicle owners must legally have third-party motor insurance under the Road Transport Act 1987. If you drive without any valid insurance, you do not only put others at risk, but you also expose yourself to some fines, a license suspension, and possible legal action.

To stay protected:

1. Be certain you renew your car insurance with a comprehensive plan quickly. Road tax renewal should also be handled promptly.
2. MyCarInfo or MyJPJ App platforms verify your coverage using these tools.
3. You must be sure that you can easily have access to a copy of your insurance policy. Put it into your mobile devices.
4. Educate others about the importance of having a car insurance coverage for their vehicles.

Being insured is not just about following the law but ensuring safety and fairness for all road users. Be safe on the road!

‍