If you have been in an accident, you may expect your car to be stranded in the workshop for a few days. Or worst, a month, depending on the severity. It can be super inconvenient for you to move around. In this case, having additional CART coverage on top of your comprehensive policy is useful to cater to your need.
How can it be advantageous to you? Read on as we explain more in detail.
What does CART means?
Compensation for Assessed Repair Time (CART) is a reasonable amount payable by third-party insurance companies as compensation for loss of use of the vehicle.
It is determined based on how long it takes to repair your car damage in the workshop. The repairing work may consume a period depending on the severity. As a result, they may require a day, a week, or even a month to complete repairing your car.
You may be inconvenienced without your vehicle. Therefore, you have the right to claim CART against another party’s insurance as you are not the party at fault in the accident.
The compensation you receive serves to reimburse you for alternative transportation options and other adjustments you had to make during that time.
Two types of CART
TYPE 1: Additional coverage for comprehensive policies
The first type of CART is purchased as additional cover only for comprehensive policyholders. You can claim CART regardless of if you are at fault or not.
Most insurance providers offer a selection of different packages, and factors to choose from include:
- Amount to be paid per day (usually up to RM200 per day).
- Coverage days (from 7, 14 to 21 days or more).
- The premium usually will cost around 10% of the aggregate sum.
Example of a case:
Diana has insured your car and purchased CART, where she opts for a 7-day plan at RM100 per day.
| PERIOD OF INSURANCE (1 JULY – 31 JUNE 2021) | Number of days covered | Amount covered per day | Total sum insured |
| Compensation for Assessed Repair Time (CART) | 7 | RM100 | RM700 |
| Additional Premium | RM700 x 10% = RM70 |
During the policy period, her car participates in an accident (March 2021). As a result, she has to send her car for repair at a workshop. The claim adjuster’s assessment of her car repairs will take 5 days. Here is the calculation of how much she will be compensated:
| Number of days covered | The amount covered per day | Assessed repair time (number of days) | Loss of use allowance payable (RM) | |
| Your cart add-on | 7 | RM100 | – | RM700 |
| Accident (March, 2021) | 7 | RM100 | 4 | RM500 |
| Your cart add-on balance | 2 | RM100 | – | RM200 |
Based on the above table, she has used 5 days in your CART cover. Therefore she has 2 days left in your CART cover. She can claim the remaining 2 days in the event of any future accidents.
*Note: The total number of days is refreshed upon policy renewal as well, keeping you covered under each new policy.
TYPE 2: Claim against the third-party insurer
You are entitled to claim under this type of CART. However, it is only applicable provided you are not at fault and you are claiming against the third-party insurer. In addition, there is no additional charge for premium.
The standardised scale of daily CART specified by PIAM for personal vehicles, commercial vehicles and motorcycles:
Based on Diana’s case example, she would only be compensated RM 150 to RM 250 (depending on the cc of her car) by the third-party insurer.
Who determines CART
Generally, it will be determined by the estimation of the appointed claims adjuster.
A claim adjuster is a highly trained insurance professional whose primary role is to represent insurance companies by determining the financial loss a customer has suffered after a claim has been filed.
After your car is submitted to the workshop (usually panel workshops acknowledged by that insurer), the adjuster will estimate how long the workshop should take to finish the repair and determine the days of CART to pay.
The adjuster will estimate that and recommend the insurance agency. However, the exact sum you receive might depend on your insurance policy’s specifics.
How to claim CART
- Type 1
You may submit your claim process as part of your Own-Damage claim or Knock-for-Knock claim.
- Type 2
You may submit your claim to the third party’s insurer. However, you must not be at fault party.
Benefits of CART
- Financial assistance (expenses – transportation fares, rental of a replacement vehicle during the duration of repairs, etc)
- No limit to the number of CART claims made provided the total number of days claimed does not exceed the cover purchased
- Any claim under this endorsement shall not affect the No Claim Discount entitlement
Purchase additional CART coverage
CART is beneficial where you may use the compensation to cover the cost of car rental or taxi fares while your car is in repair.
Therefore, you may want to consider purchasing CART coverage in your comprehensive plan policy. However, note the additional premium you have to pay for CART varies across insurers. We advise you to please check with your preferred insurer before purchasing.
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