Actual Total Loss (ATL) Explained: What Car Owners Need to Know
May 1, 2025
Can a BER Car Be Insured? Yes — Here’s How.
June 11, 2025
Buying a Used Car?
Here’s Why You Must
Check if it’s a BER Vehicle!
Here’s a handy resource for Malaysian motorists on their rights, the claims process, and tips for handling insurance/takaful situations.
If your car has been involved in a severe accident, stolen, or damaged beyond repair, you may hear the term Actual Total Loss (ATL) during the insurance claim process. Understanding ATL is crucial, as it affects how you receive compensation and what steps you need to take next.
This guide breaks down ATL in simple terms to help car owners navigate the process with confidence.
What is a Beyond Economic Repair (BER) vehicle?
A BER vehicle, or Beyond Economic Repair vehicle, is a vehicle that’s been damaged to the extent that it costs more to fix than the car is actually worth. This doesn’t necessarily mean the car can’t be fixed — but it does mean that doing so might not be financially reasonable. In Malaysia, these vehicles often enter the used car market once repaired and certified roadworthy. However, not all buyers are aware of the vehicle’s past or what that means for its performance, safety, or resale value.
Why Malaysian Secondhand Buyers Should Know
While BER vehicles may not be economical to repair, it does not mean they cannot be restored to roadworthy condition. All repaired BER vehicles are required to be inspected and pass stringent PUSPAKOM inspections before they can be put back on the road. Secondhand buyers should request the certification issued by PUSPAKOM or other Vehicle Inspection Providers as permitted by JPJ.
How to Check If a Car Was a BER Vehicle
While sellers are encouraged to be transparent, it’s ultimately your responsibility as a buyer to conduct proper checks. The good news? There are services in Malaysia that allow you to check a vehicle’s history, including whether it was ever classified as BER. These services typically use the car’s chassis number or registration details to reveal accident history, past ownership, and inspection records.
A comprehensive vehicle check can reveal critical details, such as:
- Consistency in registration and ownership details – Ensure the car’s ownership records match what the seller is claiming. Discrepancies could indicate previous legal or insurance complications.
- Evidence of major accidents, flood damage, or BER classification – Look for any records of serious damage, especially if the car has been deemed beyond repair before. Request for the vehicle to be inspected by a trusted mechanic.
- Outstanding loans or financial encumbrances – If the vehicle has unsettled financing, you could be liable for the debt or face difficulties transferring ownership.
Tip :
Always request a full vehicle history report before committing to a purchase. It’s a small step that could help you avoid difficulties when filing future claims or renewing your motor coverage.
Is the Vehicle Still Roadworthy?
Even if a car was previously classified as BER, it may still be allowed on the road if it has passed a PUSPAKOM inspection. PUSPAKOM is the official vehicle inspection body in Malaysia, and their checks are designed to assess a car’s roadworthiness, safety, and identity.
If a used vehicle has undergone major repairs, it must pass PUSPAKOM’s inspection before it can be legally sold or transferred. Ask the seller for a valid PUSPAKOM inspection report or roadworthiness certificate — especially if you’re unsure about the car’s history.
Your Rights as a Buyer
As a Malaysian consumer, you have the right to:
Taking these steps not only protects your safety — it empowers you to make financially sound decisions about your car ownership journey.
Bottom Line: Do Your Homework Before You Buy
Not all used cars are created equal. Doing a bit of homework, especially on damage history and previous claims, can go a long way in helping you own your next vehicle in confidence.
This article is part of a ‘Jom, Level Up’ campaign under Phased Liberalisation 2.0, Consumer Education Programme (CEP), by Persatuan Insurans Am Malaysia (PIAM) and Malaysian Takaful Association (MTA).
Disclaimer: The information is provided for general information only. PIAM and MTA make no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.