Flood Damage Coverage For Auto Insurance In Malaysia – How Much Does It Cost For Special Perils Add-On?

When renewing your auto insurance, you were probably offered several add-ons that you can include in your policy before payment. One of the most common is flood or special risk coverage, which, in light of the recent flooding that has hit several states in Malaysia (and future incidents of this kind), is proving to be increasingly important. .

Looking at the pictures of submerged cars on social media, it is clear that the risk of flooding should not be overlooked as it can have a serious impact on your financial well-being. You might live in an area that is not prone to flooding, but if you leave and a heavy downpour occurs things can change quickly and you and your vehicle could find yourself in an unwanted situation.

If your policy doesn’t include special risk coverage, there isn’t much you can do to submit a claim in the event your vehicle is damaged by flooding, and you’ll likely have to fork out a lot of money to pay a bill. major repair.

Many insurers here offer cover against specific risks for a certain amount, which is usually calculated by applying a rate to the agreed / insured value of the vehicle. It still won’t be nice to see the condition of your car after it has been affected by flood water, but you will at least have some form of financial protection for a break.

Coverage rate for special risks of insurance providers in Malaysia; Click to enlarge

With that in mind, we scoured the internet to determine how much it would cost you to opt for special risk coverage from a few insurance providers. Finding these numbers was not the easiest, as some are readily available and posted on official websites, while for others, you had to call the hotlines to inquire. As a warning, these prices are correct at the time of posting.

These rates are for the total sum insured, but with some insurers you can determine the amount of the sum insured (lower if you wish), which comes with different rates. Some special risk coverage options may also be limited as some only cover floods, while others have extended coverage to include other natural disasters (volcanoes, landslides, trees, lightning, etc. .)

For example, Etiqa offers two options, basic flood coverage (floods and storms) having a rate of 0.25%, while extended flood coverage adds landslides, hurricanes and other convulsions. from nature for a rate of 0.5%. Here we present a simplified overview showing the rates for full coverage, but it is always best to check with your respective insurance provider or agent for more details.

As you can see, the special risk coverage rates for the listed insurers do not exceed 1%, some up to 0.15% and others up to 0.5%. Since these rates are applied to the sum insured, the higher the insured amount, the more you will have to pay.

For example, if you insure for 25,000 RM, you only pay 38 RM with MPI Generali, while other insurers like Allianz, AXA, MSIG and Tokio Marine offer coverage for 50 RM. With higher rates like those provided by AIA, AIG, Etiqa, Kurnia, RHB and Takaful, the amount payable is between RM63 and RM125.

These amounts increase as the sum insured increases, as shown in the examples involving RM 50,000, RM 100,000 and RM 200,000. Keep in mind that the payable amount of special risk coverage will be subject to 6% SST, and you could save money if there were any promotions or discounts going on. It should also be noted that some auto insurance policies include flood coverage, although the amount you can claim is limited, whether it is a fixed amount or a certain percentage of the sum. assured; some policies also provide allowances for inconvenience associated with flooding.

For a small fee compared to the value of your vehicle, you could save yourself from having to empty your bank account to have your vehicle repaired due to flood damage. If you’re renewing your auto insurance, special risk coverage should be high on your priority list for your peace of mind. Nature is unpredictable, but making sure you’re protected shouldn’t be.

Comments are closed.