MLY CB issued the policy document on claims settlement practices, to set out the minimum standards on handling and assessment of general insurance, takaful claims.
Follows MLY CB Jun. 2023 consulted on claims settlement standards, see #178304.
Policy Document
Applies to licensed insurers carrying on general business and licensed takaful operators carrying on general takaful business (ITOs), as well as registered adjusters.
Aims to ensure fair, transparent, timely outcomes in claims settlement practices through regulatory requirements and expectations for ITOs and registered adjusters.
In addition, to promote the wider adoption of digital solutions by ITOs and facilitate better management of claims costs and containment of fraud risks by ITOs.
Regarding motor claims, specifies requirements for ITOs, including roles of the board for claims settlement practices; publication of a motor consumer service charter in branches and websites; shortened turnaround time for claims settlement process.
Effectiveness
Policy document takes effect Jan. 2, 2025, but certain paras take effect Jul. 1, 2024.
