Loss of use is the inability to use an automobile, premises, equipment, property or body part due to damage or injury usually caused by the negligence or fault of another.
Almost any property can be subject of loss of use. For instance, the owner may not be able to use his car due to damage in accident or the occupants may not be able to use any building due to fire or breakdown of water supply. A property owner or user may take insurance cover to indemnify him self against loss of use of property.
Subject to policy terms, the insurer is liable to pay compensation for each day the insured car is out of road during repairs or pay damages for the period of non occupancy of a damaged building while it is under restoration. A common measure of the damages is the hire charges of the car or the rental value of the building. However, the damages benefit paid out would be limited to a reasonable period within which normally with due diligence the building should be restored back to the occupants or the damaged car repaired.
Under the workers’ compensation law a schedule of loss of use gives the prescribed amount of damages an employee is entitled to for his inability to use any particular body part due to employment injury including finger, hand, arm, toe, foot or leg. An injured employee receives monetary benefits for the loss of use of any body part during period of temporary disability resulting there from or upon a judicial finding of permanent impairment. These monetary benefits for loss of use are over and above medical benefits. Usually a designated percentage of the concerned worker’s last pre injury average weekly wage is taken as the basis of such compensation.
