Insurance industry facing up to RM3bil in flood payouts

PETALING JAYA: The general insurance industry is potentially facing flood-related claims payouts of between RM2bil and RM3bil from the unusually severe floods reported nationwide.

The General Insurance Association of Malaysia (PIAM) said the estimate included actual and potential personal lines and commercial risks claims directly resulting from the recent flash floods as well as the ongoing monsoon season in the weeks and months ahead.

It also said in addition to the estimated total claims payout, the industry will be contributing RM2.43mil to a newly-established “Flood Relief Fund @ Dec 2021”, a corporate social responsibility (CSR) initiative to support the motoring community affected by floods.

It added that the general insurance industry’s initiative would be over and above existing commitments by insurers since the flood disaster occurred.

“The initiative was carried out to expedite claims settlement, provide additional special relief measures, as well as further ad hoc ex-gratia assistance, as determined by individual general insurers.

“This CSR assistance will initially be in the form of a subsidy towards clean-up at workshops for vehicles affected by floods (not repairs at this stage), capped at a one-off per vehicle subsidy of RM500 for cars or commercial vehicles and RM100 for motorbikes,” PIAM said in a statement yesterday.

It added that claimants would need to produce evidence of flood damage to their vehicles and proof of previous insurance cover.

“The said vehicle must be either currently insured (any type of motor policy with or without flood cover is eligible) or a vehicle that was last insured on June 1 this year.

“At this stage, the fund will be closed once the pledged amount of RM2.43mil has been exhausted.

“In concert with its CSR objectives, PIAM welcomes contributions from other parties or industries towards this flood relief fund which will extend the longevity of the fund and assist more affected motorists.

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