KUALA LUMPUR – General Insurance Association of Malaysia (PIAM) members stand ready to render assistance to their policyholders to minimize the financial impact of the recent flooding through expedited claims process and special considerations on a case-to-case basis.
The association in a statement today said policyholders are advised to contact their intermediaries or insurers for further advice as the scope of cover, terms and conditions including relief measures accorded by one insurer may differ with another.
“In the unfortunate incident of suffering losses due to floods, kindly refer to the checklist below to ensure that your insurer could assist to provide for an expedited claims process, Step 1: Check to ensure that your policy is extended to cover flood. Step 2: Notify your intermediary or insurer with details of the loss.
“Step 3: Provide complete information including all relevant supporting documentation to your insurer including photograph(s) if any. Step 4: Depending on the severity of loss, your insurer may appoint an independent loss adjuster to assist you in filing your claim,” it said.
According to PIAM, although consumer awareness of the risks to lives and property had increased by improvement in flood motor insurance take-up rate from 5% for 2021 to 12% in the first half of 2022, there is still much to be done to enhance financial resiliency especially among the B40.
PIAM said flood cover is available and affordable Malaysians are reminded that flood cover is widely available as all PIAM member companies provide flood cover under their comprehensive motor and fire policies with additional premium subject to respective underwriting discretions.
Contrary to common perception, flood coverage is affordable as the additional motor premium for flood cover is estimated to range from RM0.08 to RM1.74 per day.
“As for fire insurance, the additional premium for flood cover (for risks below RM10 million) is only 0.086% of the sum insured, a small price to pay given the exposure to flood that had caused millions of losses to properties every year.
“For a sum insured of RM200,000, this is translated into an additional premium of 47 cents per day or RM14 per month. As for tariff house owners and householder policies, flood cover is included as part of standard coverage,” it said.
PIAM also encouraged the policyholders to review their motor and fire policies to ensure that they are adequately protected from flood losses and contact their intermediaries or insurers who stand ready to provide them with the necessary assistance.
PIAM is the national trade association of all licensed direct and reinsurance companies for general insurance in Malaysia. Currently, PIAM has 25 member companies. – Bernama, March 7, 2023
