KUCHING: The take-up of motor and fire insurance remains lower in Sabah and Sarawak than the national average, particularly for flood cover, according to the General Insurance Association of Malaysia (PIAM).
Its chief executive officer, Chua Kim Soon, said the take-up of flood cover for motor insurance in the Bornean states stood at 6.8% last year, about half the national average of 14.8%.
Similarly, he said the take-up of flood cover within property fire insurance was 21% in Sabah and Sarawak, compared with 28% nationally.
"People may not be aware of the exposure they face and that they can seek protection for it," he said at PIAM's media briefing here on Thursday (May 21).
Chua said the lower take-up rate could also be due to affordability or indifference.
"They may see that it's not necessary to take up the insurance, or they find that it is too expensive for them and they take the route of not being insured," he said.
Nevertheless, he emphasised the importance of taking up flood coverage.
