Bank Negara Malaysia (BNM) has introduced the Insurers and Takaful Operators-Repairers Code of Conduct, effective January 2, 2025, to foster public trust in the motor claims and repairs industry. The Code establishes minimum standards for insurers, Takaful operators, and repairers, promoting fair practices and efficient dispute resolution.

Bank Negara Malaysia (BNM) issued the Insurers and Takaful Operators-Repairers Code of Conduct (the Code) on December 23, 2024, which took effect on January 2, 2025. This cross-sector initiative involves general insurers and Takaful operators (ITOs), repairers, and industry associations like Persatuan Insurans Am Malaysia (PIAM), the Malaysian Takaful Association (MTA), and the Federation of Automobile Workshop Owners’ Association of Malaysia (FAWOAM). The Code aims to enhance public trust and confidence in the motor claims and repairs industry. Input from authorities such as the Malaysia Competition Commission (MyCC), the Road Transport Department Malaysia (JPJ), and the Malaysia Automotive Robotics and IoT Institute (MARii) was reflected in the Code.

The Code sets out the minimum standards that ITOs and repairers must comply with when handling motor claims settlements. Panel Repairers are required to participate in the Code through their Service Level Agreements with ITOs, while Non-Panel Repairers may participate voluntarily. Non-Panel Repairers who voluntarily sign up must adhere to the Code's minimum standards.

The Code also requires ITOs to establish a dedicated Internal Dispute Resolution (IDR) process to ensure fair, transparent, and timely resolution of disputes between ITOs and repairers. It sets minimum terms and conditions to foster effective collaboration between ITOs and repairers, ensuring a quicker and fairer motor claims and repairs process for consumers.

A post-launch review will be conducted 12 months after the Code's effective date to ensure its continued relevance and efficacy. This review will evaluate the Code’s effectiveness in meeting its objectives and assess the feasibility of establishing a second-stage External Dispute Resolution process, as well as repairers’ satisfaction with the Code’s scope and administration. BNM will collaborate with the Secretariat and the Code Administration Committee to conduct and analyze the findings from this review.

Please click on the Bank Negara Malaysia link for more details on COC -