Malaysian motorists who are not at fault in an accident may claim compensation for the period their vehicle is being repaired without having purchased additional CART coverage.
According to a Sept 19 report by The Star, citing the General Insurance Association of Malaysia (PIAM), Compensation for Assessed Repair Time (CART) can be claimed from the insurer of the party responsible for the accident.
Bank Negara Malaysia (BNM) says CART compensates motorists for loss of use of their vehicle while it is under accident repair. Eligibility requires the motorist to be found not at fault by the police.
For private-use cars, BNM sets minimum daily amounts of RM50 for vehicles up to 1,500cc, RM65 for those above 1,500cc and up to 2,000cc, and RM85 for vehicles above 2,000cc.
Motorcycles qualify for RM15 a day up to 250cc and RM25 above 250cc.
These amounts apply as minimum starting points when the claimant cannot produce satisfactory supporting documents such as public-transport, ride-hailing or vehicle-rental receipts. Insurers may make upward adjustments depending on the circumstances.
Where satisfactory receipts are produced, BNM requires the insurer to pay the documented amount. For vehicle rentals, this may be adjusted to the cost of renting an equivalent type and capacity of vehicle.
One important limitation is how the repair period is calculated. CART is based on the repair time recommended by a registered adjuster or assessed by an insurer’s in-house assessor, rather than simply the total number of days the vehicle remains at the workshop.
BNM also requires reasonable provision for additional repair days caused by unforeseen delays beyond the claimant’s control.
Motorists with comprehensive insurance may alternatively be eligible for an Own Damage Knock-for-Knock (OD KfK) claim through their own insurer. This can speed up the repair process without affecting the No Claim Discount, subject to eligibility requirements.
For eligible OD KfK claims, the motorist’s insurer can also settle uninsured losses including CART and the applicable excess before recovering the amount from the at-fault party’s insurer.
Optional CART extensions sold with motor policies are separate products. They provide benefits according to their respective policy terms and are among the additional covers available from insurers for an extra premium.
