KUALA LUMPUR: Don't assume your home or vehicle are protected against floods or other natural disasters, says the General Insurance Association of Malaysia (PIAM) in light of the ongoing northeast monsoon.
PIAM chief executive officer Chua Kim Soon advised consumers to read through their policies and refer to their respective insurers for further clarity.
He added that those lacking such coverage can also reach out to their respective insurers to get the necessary insurance extensions.
“They should be able to add these midway as well,” he said during PIAM’s Monsoon Readiness Media Roundtable here on Friday (Nov 6).
Such coverage, he said, also ensures consumers do not have to pay out of their own pockets in the event of such disasters.
He said assumptions that one’s assets are not at risk of floods or other natural disasters are among the reasons why such coverage was not considered.
Chua said flood coverage for both motor vehicles and properties will remain optional to give consumers options.
“The industry wants to be transparent and we also do not want to force people to take them up.
“Our emphasis is always to ensure consumers know what they are purchasing,” he said, when responding to a question on why flood coverage remained as an add-on and not included in the premiums directly.
On a related matter, he said only 13% of internal combustion engine (ICE) vehicles had flood insurance coverage as compared to electric vehicles (EV) where almost 50% were covered.
Chua added that the average reported claim for electric vehicles was also approximately four times lower at RM8,400 compared to RM34,000 for ICE vehicles.
He said several factors may have contributed to this, noting how EVs are equipped with protected electrical systems including automated high-voltage isolation mechanisms which could help limit certain types of flood-related damage.
“EVs are also often used as secondary vehicles and are more commonly driven in urban areas where owners may be more inclined to purchase flood protection.
“However, EV claims experience is still in the early stages with the exposure base still developing and these findings should not be taken as conclusive evidence that EVs are inherently less vulnerable to flooding,” he said.
Last year, he said the southern region recorded the highest flood insurance take-up rate at 32%.
The east coast meanwhile recorded a take-up rate of 29%, the central and northern regions (28% each) and East Malaysia (21%).
Chua added there are also ongoing discussions with Bank Negara to improve flood coverage awareness for small and medium enterprises.
The northeast monsoon began on Oct 27 and is expected to last until March next year.
As of Thursday (Nov 4) night, there were 1,253 people displaced by floods.
