Guidelines for Claiming Compensation for Loss of Vehicle Use During Repairs
We previously provided information about compensation for loss of vehicle use while a car is being repaired. Today, we will explain the supporting documents and procedures required to make a claim.
If you are involved in a road accident and are not at fault, you may claim compensation for loss of vehicle use during repairs from the other party’s insurance company. The following documents and evidence should be prepared:
Documents and evidence required
- Take photographs and keep them as evidence.
- Prepare a copy of the claim form. For the other party’s claim form, you may make a photocopy or take a clear photograph. The claim number should be clearly visible.
- When taking your vehicle to a repair garage, obtain clear repair documentation, such as a repair order, vehicle receipt, vehicle return form, and repair details. All dates and information should be clearly stated, and copies should be retained.
- A copy of the vehicle owner’s or insured person’s identification card.
- A copy of the motor insurance policy or compulsory motor insurance policy for the vehicle being repaired.
- Evidence of expenses incurred while waiting for the vehicle to be repaired, where available. Proof of payment may strengthen the claim, including:
- Documents showing additional travel expenses incurred because the vehicle was unavailable.
- Documents showing loss of income from work, such as in the case of a hired-car or taxi driver.
Procedure for claiming compensation for loss of vehicle use
- Contact the claims department of the other party’s insurance company and inform them that you wish to claim compensation for loss of vehicle use.
- Submit the supporting documents requested by the insurance company. You should obtain relevant reference details, including the case reference number, the contact person’s name or number, and the claim number, so that you can follow up if you do not receive a response within two days.
- The insurance company will contact you to negotiate the amount of compensation. If you believe the amount offered is unfair, you may file a complaint with the Office of Insurance Commission (OIC) for assistance in negotiating the claim.
- Once both parties have agreed on the compensation amount, the insurance company will send you a compensation receipt or settlement form to sign and return.
- Within seven days, the insurance company will issue a cheque for the compensation. In some cases, you may be asked to collect it in person from the insurance company.
Sample letter requesting compensation for loss of vehicle use during repairs
