What can reduce your claim
You want to know what can lower your claim before you are surprised by it.
Malaysian law treats deductions from a road accident claim very differently depending on the type. A reduction for your own share of fault is common and lawful.[1] Money you already received from insurance, EPF (Employees Provident Fund) or a pension is generally not deducted from a dependency award.[2] This page separates what reduces a claim from what people wrongly assume does.
What can reduce your claim
Being partly at fault for the accident can reduce your compensation, through the contributory negligence rule, once a court decides your own share of responsibility.[1] When you were partly at fault explains how that reduction actually works.
What is generally not deducted
Insurance payouts, EPF savings and a pension are generally not deducted from a dependency claim after a death.[2] The same principle generally protects other benefits you receive independently of the claim.
Why special damages can look smaller than expected
This is proof, not a deduction. Special damages only includes costs you can show with a receipt or record, so an unproven cost is left out. Special damages explains this requirement.
Legal costs
Legal costs are generally dealt with separately from the compensation, often following the outcome of the case, rather than being subtracted from your award. Fee arrangements are a separate topic.
In short
- A genuine reduction: your own share of fault.
- Not deducted: insurance, EPF and pension payouts, for a dependency claim.
- Not a deduction, but a requirement: special damages must be proved to be included.
Where a lawyer can help
How compensation is worked out sets out where each head of loss sits, and a road accident claim covers the wider process.
If an insurer says a sum will be reduced, an independent lawyer can take on the claim and go through each point with them. Send the accident date, where it happened, whether anyone was injured (yes/no), and the police report status.
Need a lawyer to handle your injury claim?
For people seeking legal representation. For general information, please use our guides and tools.
Common questions
Will my EPF savings reduce what my family can claim after a death?
Generally no. EPF (Employees Provident Fund), insurance and pension sums received independently are not deducted from a dependency award, so receiving them does not lower what the family can otherwise claim.
Does the other driver's insurer deduct their legal costs from my payout?
Legal costs are generally handled separately from the compensation itself, often following the outcome of the case, rather than being taken directly out of your award.
If I was partly at fault, is that called a deduction?
It is usually described as a reduction rather than a deduction, applied once a court decides your share of responsibility for the accident, under the contributory negligence rule.
Why did my special damages come out lower than I expected?
This is usually because an item could not be proved with a receipt or record, rather than a deliberate deduction. Special damages only includes costs you can specifically show, so gathering proof matters more here than anywhere else.
Sources
- Civil Law Act 1956, s.12 (Attorney General's Chambers) (accessed 2026-09-22)
- Thomas Philip, on Civil Law Act 1956, s.7 (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.