Carefully consider this scenario:
Assuming you’re the typical everyday driver. You have a set route you commute. You’ve taken out what insurance policy you feel is most appropriate for you and you make sure you’re never tardy when it comes to making payments for your premium. Everything is good so far, right? Now imagine that one day, the worst happens and you get involved in a road accident. Maybe the other driver’s vehicle takes a nasty hit, or maybe the accident resulted in the damage of another person’s property.
The situation isn’t ideal, but you have insurance so everything should be fine, right? You get in touch with your insurer for the necessary payout to cover your expenses. Only for them to either deny your claims or delay your payout excessively. What do you do? This is where the Financial Mediation Bureau (FMB) comes in.
What Is The Financial Mediation Bureau (FMB) Exactly?
The Financial Mediation Bureau (FMB) is an independent organization that was established with the sole purpose of resolving disputes and conflict between financial bodies like banks or insurance providers and their clients. Should you find yourself in any difficult situation with your insurer, seeking out the Financial Mediation Bureau is a possible recourse for settling the problem. Under the close control and supervision of the Bank of Negara, Malaysia, the sole purpose of this institution is to ensure consumer (your) protection.
Why Should You Know How They Work?
As the insured party, knowing various bodies like the Financial Mediation Bureau and how they operate is only one of the many ways you do your due diligence. While it’s undoubtedly true that by taking on an insurance policy, you’ve done your part and things needn’t get more complicated, sometimes, matters don’t work that way. Having a clear picture of knowing what to do if your auto insurance company isn’t coming alive to its responsibilities help you take quick action and prevent matters from getting further out of hand.
For example, FMB as a body can get involved in your case only if the claim in question:
- Doesn’t exceed the sum of RM200, 000 in the case of auto and vehicle insurance.
- Doesn’t exceed the sum of RM5, 000 in the case of Third-Party damage to property.
With this kind of information, it is easier for you to plan your next line of action in other to achieve the result you desire.
Where And When FMB Stays Out (What to Expect)
In addition to the instances cited above, there are other occasions and times where FMB wouldn’t interfere. Some instances where they wouldn’t come include but aren’t strictly limited to:
- Disputes originating from complaints by an insurance agent and their principal,
- Cases of fraud,
- Disputes originating from the public against the insurer,
- Cases that have exceeded certain time limits.
Being able to appropriately identify which situations to call this organization in on and which to seek out other help channels better helps you fine-tune your decision-making process.
How Much Does It Cost To Take On The Services of FMB?
It’s absolutely cost-free! As they are dedicated to ensuring the fair treatment of the insured, should you ever need their services, you would get it at no charge at all. The best part is that whatever decision they make is final and binding on your insurer, not on you! This means that if you aren’t pleased with the outcome of their mediation, you can always choose to move elsewhere and plead your case.
So that’s it! If you ever find yourself in a tight spot with your insurer, you know what to do now!