Bank Negara Malaysia (BNM) has officially rolled out the Insurers and Takaful Operators-Repairers Code of Conduct, effective January 2. This new initiative aims to bolster public trust and confidence in the country’s motor claims and repair sector.
The code is the result of a collaborative effort involving general insurers, takaful operators (ITOs), repairers, and several key industry bodies, including the Persatuan Insurans Am Malaysia, the Malaysian Takaful Association, and the Federation of Automobile Workshop Owners’ Association of Malaysia.
Designed to set clear standards for handling motor claims settlements, the code outlines the minimum expectations for ITOs and repairers in their interactions. This initiative is particularly focused on enhancing transparency and efficiency within the motor claims and repair process.
For repairers, participation in the code is compulsory for those on the ITOs’ approved panels, as per their service level agreements. While non-panel repairers are not required to join, they may choose to participate voluntarily, provided they adhere to the code’s established standards.
A key feature of the code is the requirement for ITOs to establish a dedicated internal dispute resolution process. This mechanism aims to ensure that any conflicts between ITOs and repairers are handled in a fair, transparent, and prompt manner. In addition, the code defines minimum terms and conditions for collaboration between ITOs and repairers, which are intended to expedite the claims and repair process for consumers.
The code also benefits from the input of various regulatory bodies, including the Malaysia Competition Commission, the Road Transport Department Malaysia, and the Malaysia Automotive Robotics and IoT Institute.
To ensure the code’s effectiveness, a review will be conducted 12 months after its launch. The review will assess the feasibility of introducing an external dispute resolution system and gauge repairers’ satisfaction with the code’s administration. BNM, in collaboration with the Secretariat and the Code Administration Committee, will analyze the feedback from the review to ensure the code remains relevant and impactful.
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