CLOSE to 87 per cent of the roughly 26.6 million active vehicle owners in the country face the risk of significant losses, as they have not opted for flood insurance coverage, a critical consideration given the current monsoon season.
Chua Kim Soon, Chief Executive Officer of the General Insurance Association of Malaysia (PIAM), said that, based on the association’s latest data, the uptake rate for specific flood-risk coverage among vehicle owners remains at a concerning level of only 13 per cent, or approximately 3.4 million vehicles.
According to him, this stems from a common misconception: many users believe their existing comprehensive (first-party) motor insurance policies are sufficient to protect their assets against natural disasters. “The biggest mistake consumers make is assuming that a comprehensive motor insurance policy covers all types of damage.
“In reality, protection against natural disasters, such as floods, landslides, and storms, is merely an optional add-on known as ‘Special Perils’ coverage,” he told Kosmo! yesterday.
According to Ministry of Transport records, there are 40.77 million registered vehicles in Malaysia, 26.6 million of which are actively on the road, comprising nearly 16 million vehicles (cars) and 9.57 million motorcycles.
Chua noted that the absence of this additional coverage forces many owners of these active vehicles to dip into their own savings, potentially by tens of thousands of ringgit to cover repair costs should their vehicles be submerged in water.
Addressing the public perception that such additional coverage is expensive, he emphasised that the rates are actually very reasonable when weighed against the potential losses a vehicle owner might face.
“For a vehicle valued at RM100,000, the ‘Special Perils’ add-on costs only about 0.2 to 0.5 per cent—equivalent to RM200 to RM500 per year, or roughly RM17 to RM42 per month,” he explained.
Consequently, he advises the public to promptly review their respective insurance policies and include ‘Special Perils’ coverage before their vehicles are potentially submerged in water.
Meanwhile, data from the General Insurance Association of Malaysia (PIAM) indicates that Selangor and Kuala Lumpur recorded the highest motor insurance losses last year.
Chua stated that Selangor recorded RM1.6 million in losses within the motor insurance category, followed by Kuala Lumpur with RM967,700, and Johor with RM844,100.
In the category of fire insurance for properties, Sarawak recorded the highest losses, amounting to RM38 million, followed by Johor (RM32.3 million) and Selangor (RM21.9 million).
“This development indicates that flood risks are no longer confined to low-lying or rural areas; instead, they also pose a threat to rapidly developing urban areas,” he said.
According to him, vehicle owners must also understand the appropriate emergency procedures when facing floods, as incorrect actions can exacerbate damage and complicate the insurance claims process.
“One mistake to avoid is attempting to restart a vehicle’s engine after it has been submerged in water. Doing so can cause water to enter engine components, a phenomenon known as ‘water ingestion’ which leads to more severe mechanical damage.
“Drivers are also advised not to move their vehicles before taking photographs or videos to document the vehicle’s position and the floodwater level, as this will assist in the claims assessment process,” he added.
Chua noted that vehicle owners should contact their insurance company’s emergency hotline or use a roadside assistance app to arrange for a tow truck to transport the vehicle to an authorised panel workshop. – November 14, 2026
