Road Accident Compensation in Malaysia: How to Claim Step by Step
After a road accident in Malaysia, you claim compensation for vehicle damage from your own insurer or from the other driver's insurer, and you claim for injuries by a negligence claim that the other driver's insurer usually pays. Every route starts with a police report, which must be made within 24 hours.
This article explains the first steps, the difference between an own damage claim, a knock-for-knock claim and a third party claim, how personal injury and fatal accident compensation is assessed, the time limits that apply, and when it is worth filing a court action instead of waiting on an insurer. It covers Peninsular Malaysia.
Key takeaways
- In Malaysia, a road accident must be reported to the police within 24 hours, and a late report without good reason is an offence under section 52 of the Road Transport Act 1987.
- A driver who was not at fault and holds a comprehensive policy can claim repairs from their own insurer under a knock-for-knock claim without losing the no claim discount.
- Compensation for injury or death is claimed from the at-fault driver, and the driver's insurer must generally satisfy the judgment under section 96 of the Road Transport Act 1987.
- A personal injury claim must generally be filed within six years of the accident, but a fatal accident dependency claim under the Civil Law Act 1956 must be filed within three years of the death.
- Motor accident claims can be filed in the Sessions Court whatever their value, because the RM1 million ceiling does not apply to them.
On this page
- What should you do in the first 24 hours after an accident?
- Which claim should you make?
- How do knock-for-knock and third party property damage claims work?
- How much compensation can you get for an injury or a death?
- What are the time limits for an accident claim?
- When should you sue instead of waiting for the insurer?
- Frequently asked questions
What should you do in the first 24 hours after an accident?
Make sure everyone is safe, gather evidence at the scene, and lodge a police report within 24 hours. Under section 52 of the Road Transport Act 1987 (Act 333), reporting an accident more than 24 hours after it happened without a valid reason is an offence, even if the drivers have agreed a settlement between themselves.
- If anyone is hurt, get medical treatment, even for minor injuries. Hospital records made on the day are key evidence.
- Photograph the vehicles, number plates, road layout, skid marks, traffic lights and damage. Note the other driver's name, identity card, phone number and insurer, and the names of witnesses.
- Lodge the report at the nearest police station, or the traffic police station, and keep the report number.
- Inform your own insurer promptly. Most policies set a short deadline for notice, so check yours.
Be careful with unauthorised tow trucks that arrive first at the scene, and do not sign any document offered by a runner or agent at the scene or in hospital before you have taken advice.
Ask the police for the outcome of their investigation, because insurers usually need it to decide who was at fault.
Which claim should you make?
The right claim depends on what was damaged, whether anyone was hurt, and who was at fault. The table below sets out the main routes.
| Claim | Who pays | When it is used |
|---|---|---|
| Own damage | Your own insurer, under a comprehensive policy | Your car was damaged, whoever was at fault. Your no claim discount may be affected |
| Own damage knock-for-knock | Your own insurer | You were not at fault, you hold a comprehensive policy, and no bus, taxi or injury is involved. Your no claim discount stays |
| Third party property damage | The at-fault driver's insurer | Your car or property was damaged by another driver, and you choose to claim from that driver's insurer |
| Personal injury | The at-fault driver, whose insurer satisfies the judgment or settles | You were injured as a driver, passenger, motorcyclist, cyclist or pedestrian |
| Fatal accident | The at-fault driver and their insurer | A family member died. Dependants claim loss of support and bereavement |
Passengers, including those in the car that caused the accident, usually claim against the driver who was at fault.
If you were injured travelling to or from work, or for work, also check your SOCSO benefits under the Employees' Social Security Act 1969 (Act 4), which are separate from a negligence claim.
How do knock-for-knock and third party property damage claims work?
If the accident was not your fault, you can either claim your repairs from your own insurer under the own damage knock-for-knock (OD-KfK) arrangement or claim from the other driver's insurer as a third party property damage claim. The knock-for-knock route is usually faster.
In August 2025, Bank Negara Malaysia announced measures to make the knock-for-knock route easier to use. As announced, the conditions are:
- you hold a comprehensive motor policy;
- the police report or investigation confirms you were not at fault;
- the accident does not involve a bus or taxi, and no one was injured; and
- you submit the police report and supporting documents to your own insurer.
Your no claim discount remains intact.
A third party property damage claim is made against the other driver's insurer, usually with your police report, the police investigation outcome, repair estimates, photographs and an adjuster's report.
If an insurer rejects your claim or offers too little, first complain to the insurer in writing. If you are still dissatisfied, you can refer the dispute to the Financial Markets Ombudsman Service, formerly the Ombudsman for Financial Services, generally within six months of the insurer's final reply. For third party property damage claims its limit is RM10,000; larger disputes go to court.
How much compensation can you get for an injury or a death?
Compensation for injury is assessed by the court under the law of negligence and the Civil Law Act 1956 (Act 67), based mainly on the medical evidence.
The usual heads of claim are:
- pain and suffering, and loss of amenities;
- medical, hospital and transport expenses already paid, supported by receipts;
- the cost of future treatment and care;
- loss of earnings up to trial; and
- loss of future earnings, which since the Civil Law (Amendment) Act 2019 can be claimed up to age 60, not 55.
If a family member is killed, the dependants, such as a spouse, child or parent, can claim loss of support under section 7 of the Civil Law Act 1956. The 2019 amendment raised the age limit for the deceased's earnings to 60 and raised bereavement damages to RM30,000, payable only to the spouse, child or parents. Funeral expenses can also be claimed.
If you were partly to blame, for example by not wearing a seat belt or helmet, the court can reduce your damages in proportion to your share of the fault.
Keep every medical report and receipt, and attend follow-up appointments. Our article on medical negligence compensation explains similar heads of damages.
What are the time limits for an accident claim?
Several deadlines apply, and the shortest ones come first.
| Deadline | What it applies to | Source |
|---|---|---|
| 24 hours | Lodging the police report | Section 52, Road Transport Act 1987 |
| Set by your policy | Notifying your own insurer | Policy conditions |
| 6 months | Referring a dispute to the ombudsman after the insurer's final reply | Ombudsman scheme rules |
| 3 years | Filing a dependency claim after a death | Section 7(5), Civil Law Act 1956 |
| 6 years | Filing a claim for personal injury or property damage caused by negligence | Section 6(1), Limitation Act 1953 (Act 254) |
The three-year limit for fatal accident claims catches many families out. In a 2023 Johor Bahru case, a mother's dependency claim was struck out by the Sessions Court for being out of time and was reinstated by the High Court only because of the special Covid-19 measures in force in 2021.
A shorter limit can apply if the other vehicle belonged to the government or another public authority, and Sabah and Sarawak have their own limitation laws. If you are close to any deadline, take advice immediately, because once a claim is time-barred the court cannot hear it.
When should you sue instead of waiting for the insurer?
File a court action when liability is disputed, when the insurer's offer does not reflect your injuries or losses, or when a limitation deadline is approaching.
Motor accident claims of up to RM100,000 can be heard in the Magistrates' Court. The Sessions Court has unlimited jurisdiction in motor vehicle accident cases, so even a large injury claim is usually filed there rather than in the High Court.
- Your lawyer obtains the police report, the investigation outcome, sketch plan and photographs, and your medical reports.
- A letter of demand is sent to the driver and owner, and notice is given to their insurer.
- If there is no acceptable offer, a writ is filed and served. Notice of the action must be given to the insurer, because under section 96 of the Road Transport Act 1987 the insurer can resist paying the judgment if it was not notified.
- If the case does not settle at case management or mediation, the court decides liability and damages at trial.
- The judgment is paid by the insurer, or enforced if it is not.
Our civil disputes team can review your documents at a consultation and tell you which route fits your case.
Frequently Asked Questions
Do I need to make a police report for a minor accident in Malaysia?
Yes. In Malaysia, every road accident should be reported to the police within 24 hours, even a minor one and even if the drivers have agreed to settle privately. Under section 52 of the Road Transport Act 1987, a report made later than 24 hours without a valid reason is an offence. Insurers also need the report before they consider any claim.
Can I claim from my own insurer if the accident was not my fault in Malaysia?
Yes. In Malaysia, a driver who was not at fault and holds a comprehensive policy can claim repairs from their own insurer under an own damage knock-for-knock claim, and the no claim discount remains intact. The police report must show that the driver was not at fault. As announced by Bank Negara Malaysia in 2025, this route does not apply to accidents involving buses, taxis or injuries.
How long do I have to claim compensation after a road accident in Malaysia?
In Peninsular Malaysia, a claim for personal injury or vehicle damage caused by another driver's negligence must generally be filed in court within six years of the accident under the Limitation Act 1953. A fatal accident dependency claim under section 7 of the Civil Law Act 1956 must be filed within three years of the death. Shorter limits can apply to claims against public authorities, so take advice early.
How much compensation can I get for a road accident injury in Malaysia?
There is no fixed amount for a road accident injury in Malaysia. The court assesses damages for pain and suffering by reference to the medical reports and past awards for similar injuries, and adds proven expenses, the cost of future care and loss of earnings. Since 2019, loss of future earnings can be claimed up to age 60. Damages are reduced if the injured person was partly at fault.
Can I still claim if I was partly at fault for the accident in Malaysia?
Yes. In Malaysia, a person who was partly at fault in a road accident can still claim compensation, but the court reduces the damages by the percentage of fault it attributes to them. Failing to wear a seat belt or a helmet can also lead to a reduction if it made the injuries worse.
Need advice on your own situation?
Every case turns on its own facts and documents. Our lawyers in Puchong and Mont Kiara advise once we have reviewed your documents at a consultation, online or in person.
Related reading
This article is general information on Malaysian law as at October 2026 and is not legal advice. Laws and procedures change, so please seek advice on your own facts before acting.
