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<blockquote data-quote="armereth" data-source="post: 122193"><p>HI.</p><p></p><p>OK. Here you go.</p><p></p><p>"Betterment fee" is what the owner has to pay because of him getting a new parts due to the repair when the actual parts weren't new before the accident. For example, A was driving with a tyre that has 60% of thread left. He then met with an accident and the tyre need to be replaced. So the workshop ask for a new tyre in the claims. However from the insurance point of view, it is their policy to repair the car to its <strong>pre-accident </strong>condition only (whatever it may be) which means that they will only give you a tyre with 60% thread. But this is not feasible, so what the insurance will do is they approve a new tyre but they will pay 60% of the costand the balance of the 40% has to come from the owner. Go it? Simply put it, an insurance will not allow you to profit from any accident.</p><p></p><p>Now since it is very difficult to determined the percentage, Bank negara came out with a standard percentage i.e. if your car is 6 years old then you need to pay 20% of the cost of all NEW parts, 7 years old you need to pay 25% and so on until a maximum of 55% (10 years). Remember, only NEW parts will have betterment. Old or used parts or non-original parts (aka taiwan parts) will be fully paid by the insurance. But then, franchise service center like AB will not do it because they have to provide warranty.</p><p></p><p>Because of this, franchise service centre like AB sometime are reluctant to repair car that are more than 5 years old because they will need to collect the betterment from the owner. Not a problem if the owner understand the concept of betterment but not all undertands it let alone willing to accept it. So what to do? They cannot put in old parts like what outside workshop do so they ask the owner to go elsewhere i.e outside workshop.</p><p></p><p>Like I said, some insurance already started to waive the betterment if the car is repair by those franchise service center as long as they are getting the bulk business from the particular manufacturer. How true for AB I am not sure.</p><p></p><p>Arms</p></blockquote><p></p>
[QUOTE="armereth, post: 122193"] HI. OK. Here you go. "Betterment fee" is what the owner has to pay because of him getting a new parts due to the repair when the actual parts weren't new before the accident. For example, A was driving with a tyre that has 60% of thread left. He then met with an accident and the tyre need to be replaced. So the workshop ask for a new tyre in the claims. However from the insurance point of view, it is their policy to repair the car to its [b]pre-accident [/b]condition only (whatever it may be) which means that they will only give you a tyre with 60% thread. But this is not feasible, so what the insurance will do is they approve a new tyre but they will pay 60% of the costand the balance of the 40% has to come from the owner. Go it? Simply put it, an insurance will not allow you to profit from any accident. Now since it is very difficult to determined the percentage, Bank negara came out with a standard percentage i.e. if your car is 6 years old then you need to pay 20% of the cost of all NEW parts, 7 years old you need to pay 25% and so on until a maximum of 55% (10 years). Remember, only NEW parts will have betterment. Old or used parts or non-original parts (aka taiwan parts) will be fully paid by the insurance. But then, franchise service center like AB will not do it because they have to provide warranty. Because of this, franchise service centre like AB sometime are reluctant to repair car that are more than 5 years old because they will need to collect the betterment from the owner. Not a problem if the owner understand the concept of betterment but not all undertands it let alone willing to accept it. So what to do? They cannot put in old parts like what outside workshop do so they ask the owner to go elsewhere i.e outside workshop. Like I said, some insurance already started to waive the betterment if the car is repair by those franchise service center as long as they are getting the bulk business from the particular manufacturer. How true for AB I am not sure. Arms [/QUOTE]
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