Total loss vehicles: PIAM calls for transparent repairs, certification

KUALA LUMPUR: General insurance and takaful companies are working closely with key stakeholders on the issue of total loss vehicles, said the General Insurance Association of Malaysia (PIAM).

It said the stakeholders include Bank Negara Malaysia, the Transport Ministry, the Road Transport Department (RTD), Insurance Services Malaysia, Puspakom and the Malaysian Takaful Association.

PIAM said it supports RTD's initiative to enforce stringent checks on repaired accident-damaged vehicles and strongly advocates for transparency in ensuring that only vehicles deemed safe and fit for road use are allowed back into service.

"Our primary concern is the safety of all road users.

"As such, the vehicles declared beyond economic repair (BER) by insurers must be assessed and repaired appropriately, with all necessary documentation including the roadworthiness certification by a credible vehicle inspection provider before the vehicles are permitted on the road," it said.

It was responding to RTD director-general Datuk Aedy Fadly Ramli's recent statement regarding stricter compliance with auction standards for vehicles categorised as BER and authorised automotive treatment facilities (AATF).

The association also urges vehicle owners to ensure their machines are adequately covered by motor insurance, either considering options from different insurers or returning to the original insurer that declared the BER vehicle.