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Message: <blockquote data-quote="ozone" data-source="post: 296010" data-attributes="member: 71">In Malaysia, we have what we call "Knock for knock Agreement" between all insurance companies. This basically means that if an insurance company insures a car on a comprehensive basis, then in the event of an accident, the same insurance company will have to pay for the claim regardless of whether the customer is at fault or not.If it is your fault, then you make a claim for repairs to your car from your insurance policy and you will lose your NCB. This part is clear and simple.However, if it is not your fault, you can make an ODKFK claim which means you still report the accident to your own insurer and they will handle your claim in the usual manner but you will not lose your NCB. So the repair cost is actually borne by your own insurance company.Alternatively, you may chose to report the claim to the third party insurer who will then approve and " seem" to pay for repairs to your car. If the repairs is less than RM 10k, the agreement allows the third party to approve repairs without reference to your insurance company. If it is more than RM 10k, then all documents are actually sent to your own insurance company who will study the documents and will let the third party insurance company know how much to approve. Later, the third party insurance company will recover the amount paid for the repairs to your car from your own insurer as a result of the Knock for Knock agreement.Why do we have knock for knock agreement - this is so that insurance companies do not sue each other in court trying to determine whose customer is at fault otherwise the only people who makes money will be the lawyers.The knock for knock agreement does not apply to cars which are used for hire and reward ie buses and taxis and as suc if you have an accident with them, you can only make a claim directly from the bus/taxi insurance company. In this case, there will be no recovery from your own insurance company once the third party company pays your claim.It is quite complicated and I hope readers understand what I am trying to say.</blockquote>

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