How Compensation Is Calculated In Malaysia
Two people with similar injuries can receive very different amounts, and you want to know why.
Compensation in Malaysia is not one formula. It is built from separate parts set out in law. Each part is assessed on its own evidence, then the parts are added together.
A typical claim has several pieces: the injury itself, medical bills, days of pay missed, and physiotherapy still needed. Each piece is worked out differently.
What are the two main categories?
Section 28A of the Civil Law Act 1956 splits a personal injury claim into general damages, for the injury itself, and special damages, for costs you can prove.[1] General damages are assessed by a court against a published guide of ranges, together with your medical evidence.[2] Special damages are closer to arithmetic. They are the total of bills, transport and lost pay that you can show with receipts and records.
Why can you not calculate the injury part yourself?
The injury part depends on the type and severity of the injury, how long recovery took, and whether any effect is permanent. A court weighs these against the Revised Compendium of Personal Injury Awards and your medical report. It is a judgement, not a lookup table. How compensation is worked out explains this part in full.
Which parts can you add up?
Lost income before trial, medical costs you paid, and transport to appointments rest on documents, not judgement. What you can include in your claim lists what typically counts.
What about future losses?
If an injury affects future earning ability or needs ongoing treatment, these become separate heads of loss. They rest on specialist evidence about what is likely to happen next. Loss of earnings and claiming your future medical costs cover these in more detail.
Each part depends on your own evidence, so the next step is building it: medical reports, receipts and pay slips. An independent lawyer can gather these papers, put the claim together and act for you. Send the accident date, where it happened, whether anyone was injured (yes/no) and the police report status. A road accident claim shows how the pieces fit together.
Need a lawyer to handle your injury claim?
For people seeking legal representation. For general information, please use our guides and tools.
Common questions
Is there a formula I can use to work out my own compensation?
Not one you can apply yourself. A court assesses the injury part against a published guide of ranges. You can understand the separate parts that are added together, as this page explains.
Which part of my claim is the biggest, usually?
It depends on the case. A short injury with large income loss may weigh most on lost earnings. A lasting injury often weighs most on pain and suffering.
Do insurers use the same method as a court?
Insurers generally look at the same heads of loss, since a court would. This is why medical and financial evidence matters even in early negotiation.
Why can two similar accidents end up with very different outcomes?
The calculation depends on each person's injury, recovery, income and evidence, not on the accident itself. Two people hurt in a similar crash can recover very differently.
Sources
- Civil Law Act 1956, s.28A (Attorney General's Chambers) (accessed 2026-09-22)
- Malaysian Bar Council Circular No. 255/2018 (accessed 2026-09-22)
Need a lawyer to handle your injury claim?
For people seeking legal representation. For general information, please use our guides and tools.