Bank Negara Malaysia (BNM) has issued the Insurers and Takaful Operators-Repairers Code of Conduct (the Code) today, effective from 2 January 2025. The Code is a cross-sector industry-driven initiative consisting of the general insurers and takaful operators (ITOs), repairers and industry associations such as Persatuan Insurans Am Malaysia (PIAM), Malaysian Takaful Association (MTA) and the Federation of Automobile Workshop Owners' Association of Malaysia (FAWOAM). The Code is aimed at fostering public trust and confidence in the motor claims and repairs industry. The Code reflected inputs from the relevant authorities such as Malaysia Competition Commission (MyCC), Road Transport Department Malaysia (Jabatan Pengangkutan Jalan, JPJ) and Malaysia Automotive Robotics and IoT Institute (MARii).

The Code sets out the minimum standards that ITOs and repairers must comply with when handling matters pertaining to motor claims settlements. It is mandatory for Panel Repairers to become participants of the Code by virtue of its Service Level Agreements with respective ITOs. However, Non-Panel Repairers may participate on a voluntary basis. Non-Panel Repairers who voluntarily sign up to become participants in the Code must agree to comply with the minimum standards in the Code.

Additionally, the Code also requires ITOs to establish a dedicated Internal Dispute Resolution (IDR) process to ensure disputes between ITOs and repairers are resolved in a fair, transparent and timely manner. The Code sets the minimum terms and conditions to foster effective collaboration between ITOs and repairers to ensure a quicker and fairer motor claims and repairs process for the benefit of consumers who rely on their services.

To ensure the Code remains effective and relevant, a post-launch review will be conducted 12 months from the effective date of the Code. This review will evaluate the effectiveness of the Code in meeting its intended objectives. This includes the need and feasibility of establishing a second-stage External Dispute Resolution process, as well as repairers’ satisfaction with the scope of the Code and how it has been administered. BNM will work closely with the Secretariat and the Code Administration Committee for the conduct and analysis of findings from this post-launch review.

Documents

• Insurers and Takaful Operators-Repairers Code of Conduct
• Policy Document on Claims Settlement Practices

Issuance Date
23 December 2024

Issuing Department
Consumer and Market Conduct