Bank Negara Malaysia issues code of conduct for insurers and takaful operators-repairers

23 January 2025

On 23 December 2024, Bank Negara Malaysia (“BNM”) issued the Insurers and Takaful Operators-Repairers Code of Conduct (“Code”), which took effect on 2 January 2025. This initiative aims to enhance public trust in the motor claims and repairs sector.

The Code outlines the minimum and mandatory standards for general insurers and takaful operators (“ITOs”), and repairers in handling motor claims. Panel repairers must comply with the Code through service level agreements with ITOs, while non-panel repairers may participate voluntarily. The Code requires ITOs to establish an internal dispute resolution process to resolve disputes fairly and promptly.

BNM will conduct a review of the Code 12 months after its launch. The review will evaluate the Code’s effectiveness in meeting its objectives and repairers’ satisfaction with its scope. Additionally, BNM will consider whether it is necessary to implement a second-stage, external dispute resolution process, in addition to the initial internal process mentioned above.

The Code is developed in collaboration with industry associations such as Persatuan Insurans Am Malaysia, the Malaysia Takaful Association, and the Federation of Automobile Workshop Owners' Association of Malaysia.