The Federation of Malaysian Consumers Associations (FOMCA) has called on insurance companies to offer a 50% rebate on repair costs of vehicles affected by the recent floods. According to its president Marimuthu Nadason, this rebate could be considered as a corporate social responsibility (CSR) project for insurance companies.
Speaking to Free Malaysia Today last week, he said that up to 95% of vehicle owners won’t receive any compensation for repair costs, as many vehicles have been found to be uninsured for natural disasters like floods. “Insurance companies should look into such cases as long as they are insured with them,” he said.
He said there were several reasons why vehicle owners had overlooked insuring their cars against natural disasters. “Firstly, the majority of Malaysians are not aware that insurance policies offer optional cover for natural disasters like flooding. Secondly, insurance companies have failed to advise vehicle buyers about this coverage before they purchase their policies,” he said, adding that many had underestimated the severity of the floods.
Marimuthu said Fomca intended to send a letter to Bank Negara and the government to intervene by getting insurance companies to promote policies on natural disasters to the public.
The floods that hit the Klang Valley last month has highlighted the need for vehicle owners to ensure that they have special perils coverage included in their vehicle insurance. Should your policy not include special perils coverage, there’s not much you can do to submit a claim in the event your vehicle is damaged by floods, and you’ll likely have to fork out a lot of money to pay a hefty repair bill. It really doesn’t cost much more, as we’ve highlighted in our story on special perils add-ons.
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Federation of Malaysian Consumers Associations (FOMCA) thinks the insurance companies own by their grandmother
Yet many thinks Gomen should be paying to repair those flooded cars. LOL!
if it’s due to negligence .. ok la.. if not.. better buy sufficient insurance.
people tend to blame everyone else other than themselves.. i did asked about insurance for themself, cars, house and all… many said didn’t buy. but yet, they can splurge in fancy highend smart phones, designer clothing, bags and conti cars.
Make flood insurance coverage mandatory,especially for cars under financing.
Just like most banks would want houses under financing to have fire insurance.
Copy paste: “people tend to blame everyone else other than themselves.. i did asked about insurance for themself, cars, house and all… many said didn’t buy. but yet, they can splurge in fancy highend smart phones, designer clothing, bags and conti cars.”
Why not Fomca do a fund raising instead of asking others for money? Because talking is cheap working is hard.
FOMCA seems to think that Insurance companies are charity organizations. 50% would still come up to hundreds of millions. This would most probably be passed down to new premiums which the rakyat has to pay.
As usual, the government takes no responsibility for anything. It’s everyone else’s duty to take care of the flood victims!
Fomca does not represent the G nor is part of G or speaks for them.
Government should just make flood coverage mandatory for all insurance and control the additional premium charged.
Yea, offer 50% rebate to all victims and next year insurance companies will raise the premium on every innocent customer nationwide.
Always asking companies in Malaysia to give away free money or their business to whoever they like, no wonder all the big players are leaving this country.
Malaysia needs to move towards geography-based insurance. Depending on where your car is mainly stored (two locations, home and place of work), your insurance premium should reflect this. Yes, unfortunately Taman Sri Muda in Shah Alam will attract higher rates, which mat force the authorities to take proper remedial action.
This would also force owners to update their data (move house, change employer) so that they pay actual rates.
In the bigger picture, it will force companies to be more responsible in locating their office. Correspondingly, local authorities would want to ensure good drainage in their area to attract developers and businesses (sources of tax income). Houses too would get better value if everything falls into place.
It will take a while but this can work.
I agree with you, however the poor will disproportionality pay the price. Will be releasing an article explaining this soon
They are running a business not a welfare home. Betul2 otak udang
The insurance industry here is primitive and BNM does a terrible job at regulation. The cost of add-on flood coverage is 0.5% and just 5% are insured. If it was mandatory, the other 95% of premium holders would pay bringing the risk premium down to much lower levels, i.e. 20 times lower than the current level. Hopefully readers understand math to understand this comment.