Persatuan Insurance Am Malaysia Statement on “Total Loss” Vehicles Spotted on the Road

Kuala Lumpur, 27 January 2025 – Persatuan Insurans Am Malaysia (PIAM) welcomes the recent statement by Road Transport Department (RTD) Director-General Datuk Aedy Fadly Ramli, regarding the need for stricter compliance with auction standards for vehicles categorised as Beyond Economic Repair (BER) and Approved Automotive Treatment Facility (AATF) on 19 January 2025. General insurance and takaful companies are working closely with key stakeholders like Bank Negara Malaysia (BNM), Ministry of Transport (MOT), Jabatan Pengangkutan Jalan Raya (JPJ), Insurance Services Malaysia (ISM), PUSPAKOM and Malaysian Takaful Association (MTA) on the issue of total loss vehicles.

We support RTD’s initiative to enforce stringent checks on repaired accident damaged vehicles and strongly advocate 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, and as such, it is crucial that the vehicles declared BER¹ by insurers, is assessed and repaired appropriately, with all necessary documentation including the roadworthiness certification by a credible Vehicle Inspection Provider (VIP) before the vehicles are permitted on the road.

Vehicle owners are encouraged to ensure that their vehicles are adequately insured by motor insurance, either by considering options from insurers or returning to the original insurer that declared the BER vehicle. For vehicles declared as Actual Total Loss (ATL)², this refers to vehicles sustained severe damage, compromising the structural integrity of the main chassis, to the extent that the damaged motor vehicle cannot be repaired or restored to a safe state, are to be scrapped.

The insurance industry remains committed to working closely with relevant authorities to ensure public safety including running a consumer education awareness campaign to address common misperceptions on ATL and BER vehicles. More information can be found at https://jomlevelup.my/atl-ber/#ATL and PIAM social media accounts.