A Complete Guide of Loss of Use Claim Malaysia 2023

Kali terakhir diperbaharui July 18, 2023 oleh Shafiq Wahab
A Complete Guide of Loss of Use Claim Malaysia 2023

In addition to the cost of repairing the car, you are also eligible to claim Loss of Use from the insurance company in the event of an accident. This loss of use claim will teach you the guide of that can be made by the party who was violated against the insurance company of the violating party.

6 Important Things You Need to Know About Loss of Use Claim Malaysia

Loss of Use claim is also known as Compensation for Actual Repair Time (CART). This compensation is provided by the insurance company to the vehicle owner as a reimbursement for the expenses incurred due to the unavailability of the car.

1. What is Lost of Use Claim?

Basically, Loss of Use claim refers to the demand made to the insurance company for the cost of a replacement vehicle while your car is in the workshop for repairs.

In other words, compensation will be provided for transportation expenses incurred during the period your vehicle is unusable.

Claim Loss of Use in Malaysia

2. Who is Eligible to Claim Loss of Use?

The Loss of Use claim can only be made if you are proven to be not at fault in an accident. In other words, you can only proceed with the loss of use claim procedure if the accident was caused by a third party.

3. What is the Compensation Rate Provided for Loss of Use Claim?

You can claim Loss of Use for the number of days assessed by the adjuster. The compensation rate follows the standard rates set by the General Insurance Association of Malaysia (PIAM) as follows:

Category of Vehicle Type/CC CART/Day
Own Vehicle Until 1,500 cc RM30
Exceed 1,500 cc – 2,000 cc RM40
Exceed 2,000 cc RM50
Commercial Vehicle Until 1 tan RM40
Exceed 1 tan – 2 tan RM60
Exceed 2 tan RM90
Trailer Lorry RM120
Bas (Persendirian) RM90
Bas Lain (Ekspress) RM180
Taxi RM40
Motorcycle Until 250 cc RM10
Exceed 250 cc RM15

In addition to claiming based on the number of days, you can also claim the cost of renting a similar type and car capacity (CC) for the duration of your car repair.

If you want to make this claim, it is advisable to keep all payment proofs, such as taxi fare receipts or car rental receipts. Choose the option that best suits you – you can either claim Loss of Use or opt for a workshop that provides a replacement car for your use. Check with your authorized workshop for further information.

4. How is the Loss of Use Compensation Calculated?

The compensation amount to be paid by the insurance company is calculated based on the number of days required for car repairs. It is based on the estimated or assessed repair period provided by the adjuster, not the actual number of days the car stays in the workshop.

Loss of Use = Taxi Fare Receipt/Car Rental Agreement Rate X Number of Days Needed for Car Repair

loss of use claim in malaysia

5. How to Claim Loss of Use When an Accident Occurs?

To make a loss of use claim, you can follow these steps:

  • After your car is repaired by the authorized workshop, inform them that you intend to make a Loss of Use claim.
  • The workshop will provide a comprehensive report along with the necessary documents for your claim.
  • Submit the documents and the claim report to the third-party insurance company for processing.
  • Ensure you have the contact information of the responsible officer and follow up periodically to track the progress of your claim.

6. How Long Does the Claim Process Take?

Typically, the loss of use claim process takes about five days to two weeks of business days to process the claim before the payment is made to you.

Loss of use in Malaysia

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It is important to know your rights as a policyholder – understand your policy to maximize your protection and avoid losses. If you want to get the best car insurance coverage, visit Qoala’s website for more information.

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About Writer
Syazwani Yahya
As a proud tourism graduate turned content writer, I've taken my love for writing and combined it with my passion for educating others about finance and insurance.

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