The General Insurance Association of Malaysia (PIAM) assures flood victims who have purchased a flood cover as part of their general insurance policy, that its members are ready to expedite the claims process and pay out claims against losses caused by the floods.
PIAM member companies will process all flood claims so long as flood is an insured peril, regardless of whether a state of emergency is declared or not.
Member companies are committed to expedite flood claims settlement by reaching out to claimants and prepared to waive claim forms and supporting documents for shorter turnaround times.
Insurance companies are also prepared to offer special waivers for proof of reinstatement policies, allow application of average on policies that are under-insured and grant waivers on excess applicable to personal line policies.
However, policyholders are advised to check with their insurance company the relief measures or waivers they have in place as the terms vary from one insurer to another.
While standard motor and fire policies exclude coverage against losses caused by natural catastrophes such as earthquakes, tsunamis and typhoons, cover for flood-related loss or damage is optional and can be purchased as an extension to these standard policies.
All policyholders, both businesses and individuals, located in flood-stricken areas are therefore advised to check their fire and motor policies to determine whether they are covered for loss or damage resulting from the floods.
The basic fire policy provides coverage for only the building and covers loss or damage by fire, lightning or explosion.
Flood coverage can be extended with additional premiums.
The houseowner/householder policy provides additional coverage such as damage due to flood and burst pipes.
The standard comprehensive private car, commercial vehicle and motorcycle insurance policy does not cover loss or damage caused by or arising from flood, landslide and landslip.
However, the policy may be extended to cover the above-mentioned risks for an additional premium.