MP calls for transparent formula in road accident compensation scheme

The call for standardised compensation metrics comes as concerns grow over inconsistencies in how victims of road accidents receive financial redress for their losses. The lawmaker highlighted the need for a defined framework that would account for varying degrees of injury, lost earnings capacity, and ongoing medical care requirements.

Current compensation arrangements lack transparency regarding how settlement amounts are determined, leaving victims and their families uncertain about what to expect from claims. The absence of a clear formula has led to disparities in payouts for similar injuries and circumstances across different cases.

The proposed standardised approach would help ensure that victims receive equitable compensation proportional to their individual situations. This includes accounting for immediate medical expenses, rehabilitation costs, lost income during recovery periods, and long-term care needs for those with permanent disabilities.

The matter was raised in parliament as part of broader discussions on improving Malaysia's road safety and victim support frameworks. Experts have previously noted that transparent, predictable compensation systems encourage more consistent claims handling and provide clearer guidance for insurers and government agencies managing victim assistance programmes.