A MAJORITY of Malaysian motorists have no additional insurance protection against flood damage, leaving them to bear the cost of repairs or replacing their vehicles when disaster strikes.
Only 14% of motor policyholders have taken up additional flood coverage, while protection among fire and property insurance policyholders stands at 33%, according to the General Insurance Association of Malaysia (PIAM).
PIAM chief executive officer Chua Kim Soon said the low take-up was a concern given the scale of natural disaster losses in the country, particularly as Malaysia approaches the monsoon season.
Flood damage cost the country RM933.4 million in 2024, with another RM636.9 million recorded in losses last year, figures from the Department of Statistics Malaysia (DOSM) showed.
Speaking at a media briefing recently, Chua urged vehicle and property owners to check their policies rather than assume they were automatically covered against natural disasters.
The protection is not necessarily included in standard policies. Motorists with comprehensive insurance, for instance, generally need to purchase an additional extension to cover flood damage.
For homeowners, coverage depends on the type of policy and the protection selected.
The financial impact extends beyond damaged homes and vehicles.
Public assets and infrastructure accounted for RM380.2 million in flood losses last year, up from RM303.4 million in 2024.
DOSM data also showed that flood-related losses represented 0.03% of nominal gross domestic product (GDP) in 2025, compared with 0.05% the previous year.
Chua said the threat was not confined to flooding, with Malaysia also recording more than 100 landslide incidents annually and thousands of cases involving fallen trees during thunderstorms.
He said changing weather patterns had added to the challenge, with flash floods increasingly occurring outside the usual monsoon period.
The cost of additional protection, however, may be lower than many property and vehicle owners expect.
Chua said flood coverage for a home valued at RM100,000 could cost less than RM90 in additional premium, while the estimated cost for a vehicle of the same value ranged from RM150 to RM500.
Homeowners in hilly areas or those living near slopes should also check whether their policies include protection against land subsidence, he added.
PIAM does not propose making flood insurance compulsory for all property and vehicle owners, saying the decision should remain with policyholders based on their individual exposure to risk and financial means.
Instead, Chua advised owners to seek clarification from their insurers or agents on existing coverage and the cost of extending protection before a disaster occurs. – November 8, 2026
