Bank Negara Malaysia issues Code of Conduct setting minimum standards and dispute resolution expectations for motor claims handling by insurers, takaful operators and repairers

Bank Negara Malaysia (BNM) has issued the Insurers and Takaful Operators-Repairers Code of Conduct, effective from 2 January 2025, setting minimum standards for how insurers and takaful operators (ITOs) and repairers handle motor claims settlements. The Code is presented as a cross-sector, industry-driven initiative involving ITOs, repairers and industry associations, with inputs reflected from the Malaysia Competition Commission, Road Transport Department Malaysia and the Malaysia Automotive Robotics and IoT Institute. The Code is mandatory for Panel Repairers through their service level agreements with ITOs, while Non-Panel Repairers may opt in voluntarily but must comply with the Code’s minimum standards if they participate. It also requires ITOs to establish a dedicated Internal Dispute Resolution process to address disputes with repairers in a fair, transparent and timely manner, alongside minimum terms and conditions intended to support more effective collaboration and a quicker, fairer motor claims and repairs process for consumers. A post-launch review is due 12 months from the Code’s effective date to assess whether it is meeting its objectives, including the need and feasibility of a second-stage External Dispute Resolution process and repairers’ satisfaction with the Code’s scope and administration. BNM will work with the Secretariat and the Code Administration Committee on the review and analysis.