Since 1995, the guidelines on claims settlement practices have been revised multiple times. Previously, you may have heard of the term ‘Loss of Use’, but just be aware that this is the same as ‘compensation for actual repair time’(CART).
Under a third party insurance claim, apart from the damages to your car, you can also claim for CART/compensation for the loss of use of your vehicle. While your vehicle is undergoing repairs, other unforeseen expenses may arise – such as paying for alternative modes of transportation from using ride hailing services/apps. In such cases, you can claim for CART to cover some, if not all, of these unexpected expenses.
Keep in mind, however, that this can only be claimed against the third party insurer when you are not at fault.
The 2 Types of CART
The first type of CART is purchased as additional cover (At P&O, we call it Endorsement 112) only for comprehensive private car policies. Regardless of if you are at fault or not, if your car is under repair, you can claim CART directly from us.
At P&O, the additional premium will be added based on 10% of the aggregate sum (the no. of CART days times by the amount per day you prefer). For the duration of the CART, you may choose between either 7, 14 or 21 days. As for the amount per day, you may decide between RM50, RM100 or RM200 for compensation.
For example, Ali has purchased a 7 day CART duration at RM100 per day. Ali’s aggregate sum is RM700, so Ali only pays an additional premium of RM70. During the policy period, if the loss adjuster’s assessment of Ali’s car repairs will take 5 days, he will be compensated with RM500. Additionally, since Ali has 2 days left in his CART cover, he can claim the remaining 2 CART days in the event of any future accidents. Note that the total number of CART days are refreshed upon policy renewal as well, keeping you covered under each new policy.
The second type of CART is a right of yours, but only applicable provided you are not at fault and you are claiming against the third party insurer. While no additional premium is required, the standardised scale of daily CART has been specified by PIAM as follows:
| Private Car | CART/Day |
| Up to 1500 cc | RM 30 |
| Above 1500 cc – 2000 cc | RM 40 |
| Above 2000 cc | RM 50 |
| Motorcycle | |
| Up to 250 cc | RM 10 |
| Above 250 cc | RM 15 |
Using Ali’s example earlier, assuming he didn’t purchase Endorsement 112 and is not at fault, he would only be compensated RM 150 to RM 250 (depending on the cc of his car) by the third party insurer.
How is CART/Loss of Use calculated?
The number of days that CART can be applied to will depend on the loss adjuster’s assessment. Independent adjusters use the number of working days required to repair the vehicle to calculate CART, not the number of days it remains in the workshop.
Some repairs take 1-3 days, while others might take 14 days or more. However, the exact sum you receive depends on whether you have also purchased Endorsement 112 from us.
How do you claim for CART?
Firstly, have you bought Endorsement 112 from us? If you have, just submit your claim to us and we will process this as part of your OD or OD-KFK claim.
If you didn’t buy Endorsement 112, and if you are not at fault, then submit your claim to the third party’s insurer.
Unfortunately, if you haven’t purchased Endorsement 112 and you are at fault, you are not eligible to claim for CART/loss of use.