Car Insurance

  • Bad weather results in fallen trees – why Special Perils add-on for your car insurance is a good idea

    Bad weather results in fallen trees – why Special Perils add-on for your car insurance is a good idea

    The occurrence of adverse weather that results in fallen trees and roadside furniture can be unpredictable, and as depicted by these images from a Sri Petaling community Facebook page, vehicles parked in the vicinity of said trees are most exposed, and some of these are seen to be surrounded by very large fallen branches.

    The extent of damage is currently not known, nor if there were any injuries which resulted from the falling trees and objects. Any such damage sustained by the vehicles will be potentially very costly to repair, and it is typcially at this point where one wonders if car insurance will cover for eventualities such as this.

    It does, but only if the policy holder has selected the special perils add-on for their car insurance policy. Incidents of fallen trees, as well as flooding, are prime examples of why the further coverage provided by the special perils add-on is crucial.

    Coverage by the special perils add-on to one’s regular vehicle insurance policy brings added cover for natural disasters and acts of God, including for incidents such as fallen trees like this. We have tabled the costs of adding special perils coverage from various auto insurance providers in Malaysia, and these rates range from 0.15% to 0.20%, depending on company.

    For a vehicle insured for a value of RM50,000, it can be as little as RM75, ranging up to RM240 at the higher end of the scale. While not a tiny sum of money, it surely is much more affordable than potential vehicle repair costs arising from damage inflicted by a fallen tree, isn’t it?

    PS: If you renew your car insurance using our car insurance and road tax renewal service, you can compare how much special perils add-on is being quoted for your car from different insurers and choose the most affordable one.

     
     
  • Car vs bike accident in Malaysia – always the car at fault? Why can’t we claim from the bike’s insurance?

    Car vs bike accident in Malaysia – always the car at fault? Why can’t we claim from the bike’s insurance?

    Photo from PDRM social media

    It is a litany we have heard many times. “This motorcycle just hit my car/bumper/wing mirror and shot off. I got everything on the dash cam, shall I make a report?”

    “Aiya, no point one, report also useless, police won’t take action,” is the usual reply. A point of fact is, in the congested traffic conditions of Malaysia, unfortunate encounters between cars and motorcycles will take place, leaving aside the issue of careless, inattentive and less than responsible drivers and riders.

    The issue of insurance claims against motorcycle riders in Malaysia seems to follow a specific trend, to wit, it is next to impossible to claim against a motorcyclist’s insurance. In some cases, after the report is made, the insurance company is less than enthusiastic about pursuing a claim.

    This leaves the driver with a busted car and looking at the loss of the No Claims Discount (NCD). Considering the parts replacement cost of many components in modern cars – have you priced a wing mirror for a new Proton lately? – most drivers don’t have the wherewithal to effect repairs out of pocket.

    But why is this so? In researching this topic, we approached those in the insurance industry and certain workshops specialising in insurance claims, both two- and four-wheel, as well as speaking to our police Traffic Investigation and Enforcement Department (JSPT) contact.

    “The fact of the matter is, police only assign the cause and responsibility, plus damage, in event of an accident. We do not determine who files an insurance claim against the other party, nor do we determine the compensation involved. That is a matter for the insurance company and the courts,” said our JSPT contact.

    “Of course, when there is injury or death, things immediately become more serious and the investigative work more involved,” he added. “As for why insurance companies don’t pursue claims against motorcyclists, that is something you will have to ask them,” he said.

    Car vs bike accident in Malaysia – always the car at fault? Why can’t we claim from the bike’s insurance?

    Motorcycle vs car crash test by MIROS

    Approaching a contact in the insurance industry who insisted on speaking on condition of anonymity, he said, “bro, it’s not that we don’t want to claim, the process is almost impossible.” Citing several cases he dealt with, paultan.org was informed it was quite normal for the insurance company to find out the person or address cannot be traced for the claim to be served.

    “Additionally, there is the issue of riders without licence or road tax, which immediately makes the rider’s policy null and void, or not even having insurance in the first place,” said our insurance contact. Asked what a claimant can do in such an instance, he said there is the option of filing a civil suit but reminded us the wheels of justice are slow to turn.

    “Of course, you can file a claim but that means you have to spend money retaining a lawyer, then time for court appearances and such,” he explained. “Then you start having the issue of tracking the person down, etc., appearing before court and so on before obtaining judgement, then you still have the issue of getting your money back,” he added.

    “Bro, you know the first rule of legal cases, right? Don’t sue poor people,” he continues with a laugh. He added that in most cases, the insurance company will advise the claimant to claim against the policy, though with the penalty of losing the NCD.

    Furthermore, another anonymous source in the insurance industry said police and the courts tend to look favourably upon motorcyclists in accident cases, considered to be coming from a disadvantaged segment of society. We cannot confirm this and think it best left at the level of anecdote but based on previous experience, we can say there might possibly be something in it.

    At the end of it, it appears the best way out of the situation involving a car and motorcycle, assuming the rider is at fault, is to take the path of least resistance, that of claiming against your own insurance.

     
     
  • Flash floods hit Seksyen 13 Shah Alam – find alternate routes, get Special Perils insurance add-on coverage

    Flash floods hit Seksyen 13 Shah Alam – find alternate routes, get Special Perils insurance add-on coverage

    Pix – Zaini Abdullah on FB

    Social media reporting of flash floods in Seksyen 13 of Shah Alam has emerged today, following sustained rainfall in the area this afternoon.

    Flood water levels at this time appear to be lower than in past instances of flooding, though naturally the best course of action is to avoid taking to the roads which are affected; the submerged road surface is no longer visible, which brings the potential danger of hidden obstructions or debris.

    As such, if the route you intend to take is affected, delay your journey if possible, and avoid forcing your way through floods as it may cause significant damage to your vehicle.

    Also highly recommended is the Special Perils add-on for your vehicle’s insurance coverage, as past floods in recent times have shown, vehicle owners without flood coverage face potentially massive repair bills.

    Live : Seksyen 13 Shah Alam sederet Zus Coffee, Kueh, Nasi Lemak Cinta Sayang

    Posted by Syameem Ahmad on Wednesday, 16 August 2023

    Seksyen 13 air naik tinggi . depan Giant n Laman Seri da banjir

    Posted by Zaini Abdullah on Wednesday, 16 August 2023

     
     
  • Rainy season means lots of falling trees – avoid parking under trees and get Special Perils insurance

    Rainy season means lots of falling trees – avoid parking under trees and get Special Perils insurance

    Of late, it has been raining almost daily in the Klang Valley, and heavily too, with ferocious lighting and thunder for effect. This writer was drenched yesterday despite carrying an umbrella, as the accompanying wind was very strong. When I came back to the car, it was covered in yellow flowers from the area’s trees, snow wash style.

    During rainy seasons, we are worried about flash floods, and rightly so, but falling trees are also a big risk. Take a look at these images by Majlis Bandaraya Subang Jaya, which shows the local council’s Pasukan Pantas respond to this week’s tree falling incidents at Bandar Putra Permai, Puchong and Seri Kembangan.

    We don’t think of it much, certainly less than the floods, but cars parked under trees are at risk of damage from falling trees, and regular insurance does not cover damage from acts of God. Coverage for damage from natural disasters will need the special perils add-on, which also covers flood damage.

    Otherwise, should the unfortunate hit you, literally, it will be like the saying “money fall from the sky”, except in this case, your money will fly into the sky thanks to the repairs. We can’t avoid falling objects when driving, but when choosing parking spots, it’s better to park at a clear spot even if it’s further away, versus under trees. Even if nothing happens, you won’t have to clean your car from flowers, leafs and twigs after the storm.

     
     
  • Longer wait for repairs of flood-damaged vehicles – get covered with Special Perils insurance add-on

    Longer wait for repairs of flood-damaged vehicles – get covered with Special Perils insurance add-on

    Repairs for cars which have been submerged in floodwaters may require at least two weeks and RM10,000 in repairs, according to the Johor Automobile Repairmen’s Association, The Star reports.

    Last week, the southern state was once again inundated by flash floods, resulting in the evacuation of 1,591 victims in four districts to 21 relief centres (PPS) as of the morning of March 1.

    Flood victims with water-damaged vehicles should be prepared for a longer wait to have their vehicles repaired as the market is facing a shortage of workers and spare parts, said the association’s chairman Ku Chong Sin. Many parts of Johor are still experiencing floods, and cars are expected to be towed into workshops in the next few days, depending on when the flood waters recede.

    Longer wait for repairs of flood-damaged vehicles – get covered with Special Perils insurance add-on

    “Cars that have been submerged will usually have electronics damage, engine problems and foul odour apart from scratches and dents to the external body. It costs a big sum of money to fix if the insurance does not cover floods,” Ku told The Star.

    Based on past experience, some owners of flood-affected vehicles would choose to sell their water-damaged cars instead of paying substantial sums of money to get them repaired, Ku said. There has also been a shortage of vehicle spare parts since the Covid-19 pandemic due to supply chain disruptions, and the situation has yet to improve much even after travel restrictions were lifted last year, he added.

    “The weaker ringgit is one of the factors causing the shortage as we cannot compete with other countries in the acquisition of spare parts, which are already quite limited in the market,” Ku said. The matter is compounded by a shortage of skilled manpower, as many have left to seek different opportunities in Singapore, Ku added.

    Longer wait for repairs of flood-damaged vehicles – get covered with Special Perils insurance add-on

    Consumers are advised to add flood coverage for their vehicle insurance, said Universiti Teknologi Malaysia school of mechanical engineering senior lecturer Muhamad Hasbullah Padzillah. “With the unpredictable weather and floods happening quite often these days, it is wise to spend a bit more on vehicle insurance to avoid having to fork out a bigger amount when hit by a natural disaster,” Hasbullah said.

    Owners of flooded vehicles are also advised to resist the urge to start the flooded vehicles immediately after flood waters recede, because this could cause further damage. “If the soiling is more than 10 cm above ground, it is better to have the car towed to the workshop because a wet gearbox and engine, leading to hydrolock, can damage the vehicle further,” he said.

    Here, we have also compiled a selection of rates from insurance providers for Special Perils coverage, where the additional costs as of March 2022 were found to be between 0.15% t 0.50%, from company to company. As the weather of late continues to bring rain, the additional coverage brings welcome peace of mind. Have you added to yours?

     
     
  • Be prepared to pay RM10k to fix your flood-damaged car – Special Perils insurance is an important add-on

    Be prepared to pay RM10k to fix your flood-damaged car – Special Perils insurance is an important add-on

    Be prepared to pay around RM10,000 (or more) in repairs should your car be damaged due to floodwaters. This is according to Johor Automobile Repairmen’s Association chairman Ku Chong Sin, who was interviewed by The Star recently.

    “With many parts of Johor still experiencing floods, we expect to see cars getting towed into workshops in the next few days, depending on when the murky waters recede. Cars that have been submerged will usually have electronic damage, engine problems and foul odour apart from scratches and dents to the external body,” he said in a report by The Star.

    “It costs a big sum of money to fix if the vehicle insurance does not cover floods,” Ku continued, adding that victims should expect long wait times for repairs to be carried out due to several factors.

    Be prepared to pay RM10k to fix your flood-damaged car – Special Perils insurance is an important add-on

    Following the disastrous floods that struck Malaysia towards the end of 2021, several car companies announced flood relief assistance programmes that discounted the cost of repairs for a certain period to ease the financial burden of owners.

    The Department of Statistics Malaysia (DOSM) recently said vehicle losses due to floods amounted to RM18.8 million last year. Before that, Zurich Malaysia reported that 59% of Malaysian motorists do not have adequate protection against flood damage.

    It does cost more to add on flood or special perils coverage, but the amount is relatively small when compared to your vehicle’s value and can protect you financially if the undesired happens.

     
     
  • RM18.8 million in vehicle losses from floods in 2022 – why Special Perils insurance add-on is necessary

    RM18.8 million in vehicle losses from floods in 2022 – why Special Perils insurance add-on is necessary

    There’s no denying that floods have a substantial, far-reaching impact on those affected by them, and nowhere is this more evident when the losses caused by floods are measured on a financial scale.

    In a special report on the impact of floods in Malaysia, the Department of Statistics Malaysia (DOSM) revealed that the country suffered RM622.4 million in losses due to floods in 2022. While the overall total pales in comparison to 2021’s losses, when a whopping RM6.1 billion in losses was recorded, the damage in psychological terms is no less severe, certainly not to those affected by such disasters.

    The report broke down areas where losses were incurred. Public assets and infrastructure topped the list with RM232.7 million (2021, RM2 billion), followed by housing at RM157.4 million (2021, RM1.6 billion) and
    agriculture at RM154.5 million (2021, RM90.6 million). Business premises were also hard hit, suffering RM50.3 million in losses last year (2021, RM525.8 million).

    RM18.8 million in vehicle losses from floods in 2022 – why Special Perils insurance add-on is necessary

    On the automotive front, vehicle losses in 2022 amounted to RM18.8 million, which was well down from the RM982.8 million recorded for the segment in 2021. Of course, that’s scant consolation to those whose cars were damaged by flood waters, especially those without appropriate coverage, in this case for special perils.

    The risk of floods is often overlooked when purchasing car insurance, and so the flood coverage or special perils box is usually never ticked. If you don’t have it, there’s not much you can do to submit a claim in the event your vehicle is damaged by floods (or any other form of natural disasters).

    Last year, Zurich Malaysia reported that 59% of Malaysian motorists don’t have adequate protection against flood damage, based on its Impact of Pandemic on Protection survey that was conducted among 990 vehicle owners in September 2021. The statistics above is a reminder that undesirable situations can happen, and it’s best to be prepared.

     
     
  • Danga Bay flash flood – the end-2022 monsoon season is here, get special perils car insurance add-on!

    The first floods of the end-2022 monsoon season is here, as social media users have reported flash floods happening in Danga Bay Johor this morning.

    MetMalaysia predicts that we will face continuous heavy rains from mid-November, but it already starting to flood right now in end-September. Things might get seriously bad in mid-November. The impact is more significant this time around as northeast monsoon is active that time of the year, and the La Nina phenomenon will be present till early next year, which will add to rainfall.

    If you have not seen any significant efforts by authorities to improve drainage in areas that have faced heavy flooding the same time last year, you have to be prepared it will happen again.

    We must be prepared to face the same floods again.

    This is just a reminder that if you live or travel through a flood-prone area and your motor insurance does not have special perils add-on, your insurance policy will not cover damage caused by flood, which is classified as an act of God.

    Danga Bay flash flood – the end-2022 monsoon season is here, get special perils car insurance add-on!

    Click to enlarge.

    It’s not super costly. We tabulated the extra cost of adding on Special Perils coverage from a few auto insurance companies in Malaysia, including AIA, AIG, Allianz, AXA, Etiqa, Kurnia, MPI Generali, MSIG, RHB, Takaful and Tokio Marine. The rates vary between 0.15% to 0.50%.

    For example, if you’re insuring a car for RM50,000, you’re paying as little as RM75 with MPI Generali, while other insurance providers like Allianz, AXA, MSIG and Tokio Marine offer the coverage for RM100. With higher rates like those provided by AIA, AIG, Etiqa, Kurnia, RHB and Takaful, the payable amount is between RM125 to RM250. Click on the table above for a better view.

     
     
  • MetMalaysia predicts major floods in end-Nov – don’t forget Special Perils coverage for your car insurance

    MetMalaysia predicts major floods in end-Nov – don’t forget Special Perils coverage for your car insurance

    How’s the weather where you are? It’s been gloomy all morning here in KL and it even rained just now – yes, in the morning. Such is the unpredictability of the weather these days to the common man. But our meteorological department has the expertise and tools to predict the weather, and it has a warning for Malaysians.

    MetMalaysia is predicting that the country will face continuous heavy rains from the mid of November, and this might lead to big floods at the end of the month. The impact is more significant this time around as northeast monsoon is active that time of the year, and the La Nina phenomenon will be present till early next year. This will add to rainfall.

    According to MetMalaysia’s director-general Muhammad Helmi Abdullah, in October, the weather risk only involves thunderstorms that potentially can cause strong winds, heavy rain and small scale flash floods in short periods. He told BH that most places are expected to receive normal rainfall in October.

    MetMalaysia predicts major floods in end-Nov – don’t forget Special Perils coverage for your car insurance

    Typically, Malaysia will face the changing of monsoons from end September to early November.

    “During this period, weather is usually good in the morning, whereas in the evening till early night, thunderstorms are more frequent especially at west coast states and the interiors of Peninsular Malaysia, Sarawak (west and central) and west Sabah. The risk of flash floods is high in this period, especially in low-lying areas in the west coast of Peninsular Malaysia,” Muhd Helmi said.

    Whether it is flash floods from our “usual” thunderstorms or a major event as predicted for end-November, we need to prepare for them by having Special Perils insurance coverage for our vehicles. This add-on covers natural disasters and acts of God, including floods. Tick the optional box when you purchase your annual car insurance and you’ll be reimbursed by the insurance provider should your car suffer damage from natural disasters.

    MetMalaysia predicts major floods in end-Nov – don’t forget Special Perils coverage for your car insurance

    Click to enlarge

    It’s not super costly. Late last year, we tabulated the various costs of adding on Special Perils coverage from most auto insurance companies in Malaysia, including AIA, AIG, Allianz, AXA, Etiqa, Kurnia, MPI Generali, MSIG, RHB, Takaful and Tokio Marine. The rates vary between 0.15% to 0.50%.

    For example, if you’re insuring a car for RM50,000, you’re paying as little as RM75 with MPI Generali, while other insurance providers like Allianz, AXA, MSIG and Tokio Marine offer the coverage for RM100. With higher rates like those provided by AIA, AIG, Etiqa, Kurnia, RHB and Takaful, the payable amount is between RM125 to RM250. Click on the table above for a better view.

    Unless you drive an old, non-collectible car that’s “disposable”, surely the extra cost for peace of mind is worth it, right?

     
     
  • Federal court rules road accident victims should be compensated by insurance, even in sambung bayar

    Federal court rules road accident victims should be compensated by insurance, even in <em>sambung bayar</em>

    A landmark ruling by the Federal Court has held that victims of road accidents should be automatically compensated by insurance companies without requiring legal action to do so.

    Provisions in the Road Transport Act 1987 should be construed to protect all motorists, including victims of road accidents, Federal Court judge Abdul Rahman Sebli said, Free Malaysia Today reports. The intention of Parliament in enacting the Act was also to protect innocent third-party road users, he said in a 140-page judgement allowing appeals involving eight different motorists, of whom seven were injured in accidents.

    According to the report, of the eight appeals, five involved Pacific & Orient Insurance, Amgeneral Insurance, Allianz General Insurance Company, and Malaysian Motor Insurance Pool. The three-person bench, comprised of Rahman as well as Hasnah Mohammed Hashim and Rhodzariah Bujang, awarded RM150,000 in costs to each of the successful parties in the appeal.

    The appeals came about as the insurance companies had obtained a declaration in the High Court to nullify the policies of motorists due to allegations of misconduct on the part of the vehicle owners, the FMT report said. This action had denied accident victims monetary compensation that had been due to them, prompting the appeals.

    Federal court rules road accident victims should be compensated by insurance, even in <em>sambung bayar</em>

    The appeals included a sambung bayar case, where the dispute arose when the vehicle owner attempted to claim on his vehicle following an accident.

    However, he had “sold” his vehicle to a third party through such an arrangement, with the insurance company being unaware of this. When it learnt about this, it then obtained a declaration from the High Court to nullify the policy of the motorist, citing misconduct on the part of the vehicle owner. Following this, the insurer refused to cover the vehicle owner’s loss.

    In another case, while the Sessions Court had found the driver of the other vehicle negligent after a full trial, the insurance company took a court order alleging it had been defrauded, and declined to pay the vehicle owner who was claiming for damages.

    The case victim was eventually found to merely hold a paper judgement, which the Federal Court said was “not even worth the paper it was written on,” continuing that it was unfair because the victim’s constitutional rights to be treated fairly had been infringed.

    Federal court rules road accident victims should be compensated by insurance, even in <em>sambung bayar</em>

    Rahman said that all vehicle owners were required to have compulsory insurance coverage, because the law states that the road transport department would not issue road tax without insurance coverage. In the event of an accident, a victim injured by a vehicle could sue the vehicle owner, but with valid insurance coverage, the insurer (or insurance firm) would step in and provide the necessary compensation in damages to the victim on behalf of motorists.

    The Road Transport Act had to balance two competing interests. While it has to protect innocent third parties against the risks, it must also protect an insurance company from being victimised by fraudulent claims, Rahman explained.

    Ultimately, setting the balance between two competing interests still meant that the loss had to fall on one party, and the Federal Court ruled that such a loss should be borne by the insurer, in following the principle established by the 1959 Indian Supreme Court case of British India General Insurance vs. Capt Itbar Singh.

     
     
  • Klang Valley braced for flash floods – now is the time to opt for Special Perils auto insurance coverage

    Klang Valley braced for flash floods – now is the time to opt for Special Perils auto insurance coverage

    Nearly three months after the devastating floods of late 2021, heavy thunderstorms continue to hammer the east coast of Malaysia, increasing the possibility of more flash floods. Having been criticised for their slow response before, local municipalities are now on full alert, with logistics and manpower ready to be mobilised.

    According to The Star, the authorities have initiated various flood mitigation efforts in an attempt to reduce the occurrence of floods, protecting homes and businesses. The English-language daily also said that municipalities in Shah Alam and Klang, areas that were some of the worst affected by the December 18 floods, were using real-time data to monitor the current situation.

    The Shah Alam City Council (MBSA) was reportedly monitoring its reservoirs and pumps in areas like Taman Sri Muda, Taman Mesra, Kampung Kebun Bunga, Padang Jawa and Section 13 to ensure they were functioning as intended. Meanwhile, the Klang Municipal Council (MPK) was using CCTV cameras to monitor the floods around the clock. “A Quick Response Unit is on standby and we have increased checks on drainage networks,” said president Noraini Roslan.

    Some 34 flash flood hotspots were also identified by the Petaling Jaya City Council (MBPJ), which has allocated RM28 million to carry out flood mitigation projects. The latter would cover pre-flood, mid-flood and post-flood incidents, said mayor Mohamad Azhan Md Amir.

    Klang Valley braced for flash floods – now is the time to opt for Special Perils auto insurance coverage

    In Subang Jaya, the Subang Jaya City Council (MBSJ) has been updating its social media platforms with flood-related alerts and has activated its disaster operations room at its command centre. The room has been on standby since the start of the monsoon season, The Star reported.

    As for Kuala Lumpur, the Kuala Lumpur City Hall (DBKL) has said it will broadcast alerts on its electronic billboards should flood warnings be triggered. Its operations room at Menara DBKL 1 on Jalan Raja Laut will be activated to coordinate a response for flood victims if required. Local agencies and authorities are also upgrading and clearing drainage to accommodate surface runoff and prevent flooding, it was reported.

    While we’re talking about floods, it’s a good time to remind you to take up Special Perils insurance coverage for your vehicle to shield you from any damage caused by water ingress. This add-on covers natural disasters and acts of God, including floods. Tick the optional box and you’ll be reimbursed by the insurance provider should your car suffer damage from natural disasters.

    Klang Valley braced for flash floods – now is the time to opt for Special Perils auto insurance coverage

    Click to enlarge.

    We have recently tabled the various costs of adding on Special Perils coverage from most auto insurance companies here in Malaysia, including AIA, AIG, Allianz, AXA, Etiqa, Kurnia, MPI Generali, MSIG, RHB, Takaful and Tokio Marine. The rates vary between 0.15% to 0.50% from company to company.

    For example, if you’re insuring a car for RM50,000, you’re paying as little as RM75 with MPI Generali, while other insurance providers like Allianz, AXA, MSIG and Tokio Marine offer the coverage for RM100. With higher rates like those provided by AIA, AIG, Etiqa, Kurnia, RHB and Takaful, the payable amount is between RM125 to RM250.

    While certainly not negligible amounts, it sure sounds worth it if you ever need the coverage, right? Click here for more details on Special Perils add-on.

     
     
  • No insurance, takaful premium hikes for floods: PIAM

    No insurance, takaful premium hikes for floods: PIAM

    Insurance coverage for special perils has been a major talking point following the devastating floods that hit parts of the Klang Valley and Pahang last month. If you’re worried that the renewed interest in obtaining additional protection for cars and motorcycles will drive prices up, don’t worry, as the General Insurance Association of Malaysia (PIAM) has assured customers that premiums will remain under control.

    According to a Bernama report, the cooperation’s board of directors said the demand for insurance and takaful coverage to protect against floods and other natural disasters is currently very low due to a lack of awareness, adding that the increased demand will actually cause prices to drop.

    “More people opting to get coverage will result in lower premiums due to competition among insurance companies offering more attractive packages,” said board member Zainudin Ishak in a webinar jointly organised by the Financial Education Network, PIAM, and the Malaysian Takaful Association today.

    No insurance, takaful premium hikes for floods: PIAM

    He added that floods will continue to happen as a result of climate change and infrastructure development bottlenecks. “Hence takaful or insurance coverage for floods is important, no matter where we live, be it on high- or low-lying areas because there will be loss of properties and other unexpected losses after the floods. If we live on higher ground, the rise in water levels may not affect us, but our properties like cars and motorcycles may be impacted.”

    Zainudin, who is also the president and CEO of Malaysian Re, urged the public to the government’s constraints in providing aid in times of flooding, as there will likely be many victims in need of attention and support. “Property losses from flooding are not small and can run into billions of ringgit,” he said.

    He added that the cost of vehicle repairs as a result of the 2021 floods was estimated by the insurance industry at RM1.3 billion, of which less than five per cent was covered by special perils insurance. “So if we do not protect ourselves against floods, there’s no chance for us to make claims…we have to bear the full brunt of the losses ourselves. It’s better for us to take the opportunity to have coverage to safeguard our future,” Zainudin said.

     
     
  • Tree falls on Perodua Myvi in Wangsa Maju – another reason Special Perils insurance add-on is a must

    Tree falls on Perodua Myvi in Wangsa Maju – another reason Special Perils insurance add-on is a must

    A rather horrific dash cam clip of a large tree falling on an unsuspecting Perodua Myvi has been shared on Twitter by @rudyakhbar_. Said to have happened in Wangsa Maju, the video shows the sizable tree landing on the hatchback, while it was stopped at a traffic light intersection.

    As the doors appear to have popped out by the impact, suggesting that the pillars have failed (or just about to), it’s looking likely that we’re looking at a total loss here. While it’s quite a shocking scene, the next question that pops up would be along the lines of “that’s terrible, I wonder if the insurance would cover the damage?”

    The simple answer is yes, but only if the owner had opted for the Special Perils add on. This is yet another reason (the other being flood, obviously) that the optional add-on coverage package really should be made mandatory here in Malaysia.

    If you’re unaware, the Special Perils add-on to your regular auto insurance includes cover for natural disasters and acts of God, including such an accident like this. Tick the optional box and you’ll be reimbursed by the insurance provider should your car suffer damage from natural disasters (a falling tree counts as one, as confirmed by Etiqa).

    We have recently tabled the various costs of adding on Special Perils coverage from most auto insurance companies here in Malaysia, including AIA, AIG, Allianz, AXA, Etiqa, Kurnia, MPI Generali, MSIG, RHB, Takaful and Tokio Marine. The rates vary between 0.15% to 0.50% from company to company.

    Tree falls on Perodua Myvi in Wangsa Maju – another reason Special Perils insurance add-on is a must

    Click to enlarge.

    For example, if you’re insuring a car for RM50,000, you’re paying as little as RM75 with MPI Generali, while other insurance providers like Allianz, AXA, MSIG and Tokio Marine offer the coverage for RM100. With higher rates like those provided by AIA, AIG, Etiqa, Kurnia, RHB and Takaful, the payable amount is between RM125 to RM250.

    While certainly not negligible amounts, it sure sounds worth it if you ever need the coverage, right? Click here for more details on Special Perils add-on.

     
     
  • FOMCA calls on insurance companies to offer a 50% rebate on repair costs of flood damaged vehicles

    FOMCA calls on insurance companies to offer a 50% rebate on repair costs of flood damaged vehicles

    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.

     
     
  • Flood damage coverage for car insurance in Malaysia – how much does it cost for Special Perils add-on?

    Flood damage coverage for car insurance in Malaysia – how much does it cost for Special Perils add-on?

    NEW: Use our Car Insurance renewal service to compare Special Perils add-on quotes from different car insurance providers in real time.

    When renewing your auto insurance, you’ve probably been offered several add-ons that you can include in your policy before payment. One of the more commons ones is flood coverage or special perils, which, in light of the recent floods that struck several states in Malaysia (and future such incidents), is proving to be more and more important.

    Looking at images of submerged cars on social media, it’s clear that the risk of floods shouldn’t be overlooked as it can have a serious impact on your financial wellbeing. You could live in an area that isn’t prone to flooding, but if you’re heading out and a heavy downpour occurs, things can change quickly and you could find you and your vehicle caught in an undesirable situation.

    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.

    Many insurance providers here provide special perils coverage for a certain fee, which is typically calculated by applying a rate onto the vehicle’s agreed/insured value. It still won’t be pleasant to see the state of your car after it’s been affected by flood waters, but you’ll at least have some form of financial protection for respite.

    Flood damage coverage for car insurance in Malaysia – how much does it cost for Special Perils add-on?

    Special perils coverage rates from insurance providers in Malaysia; click to enlarge

    With that in mind, we scoured the internet to find how much it would cost you to option special perils coverage from a few insurance providers. It wasn’t the easiest to find these figures, as some are readily available and shown on official websites, while for others, we had to call up hotlines to inquire. As a disclaimer, these rates are accurate at the time of publishing.

    These rates are for the total insured sum, but with certain insurance providers, you can determine the amount of sum insured (lower if you want), which comes with different rates. Certain special perils coverage options can also be limited in that some only cover floods, while others have expanded coverage to include other acts of God (volcanoes, landslides, trees, lightning strikes etc.)

    For example, Etiqa provides two options, with the basic flood coverage (floods and storms) having a rate of 0.25%, while the expanded flood coverage adds on landslides, hurricanes and other convulsions of nature for a rate of 0.5%. Here, we’re presenting a simplified overview showing the rates for full coverage, but it’s always best to check in with your respective insurance provider or agent for the finer details.

    As you can see, the rates for special perils coverage for the insurance providers listed do not exceed 1%, with some being as low as 0.15% and some as high as 0.5%. As these rates are applied on the sum insured, the higher the amount being insured, the more you’ll need to pay.

    Flood damage coverage for car insurance in Malaysia – how much does it cost for Special Perils add-on?

    For example, if you’re insuring for RM25,000, you’re paying as little as RM38 with MPI Generali, while other insurance providers like Allianz, AXA, MSIG and Tokio Marine offer the coverage for RM50. With higher rates like those provided by AIA, AIG, Etiqa, Kurnia, RHB and Takaful, the payable amount is between RM63 to RM125.

    These amounts increase as the insured sum goes up, as seen with examples involving RM50,000, RM100,000 and RM200,000. Keep in mind that the payable amount of special perils coverage will be subject to 6% SST, and you could save should be there be any ongoing promotions or discounts. It should also be noted that some auto insurance policies do include flood coverage, although there are limited in terms of how much you can claim, be it a fixed amount or a certain percentage of the insured sum; some policies also provide flood inconvenience allowances.

    For a small fee relative to your vehicle’s value, you could save yourself from having to drain your bank account to have your vehicle fixed due to flood damage. If you happen to be renewing your auto insurance, special perils coverage should be high on your priority list for that peace of mind. Nature is unpredictable, but ensuring you are protected shouldn’t have to be.

     
     
 
 
 

Latest Fuel Prices

PETROL
RON 95 RM2.05 (0.00)
RON 97 RM3.47 (0.00)
RON 100 RM5.00
VPR RM6.20
DIESEL
EURO 5 B10 RM2.15 (0.00)
EURO 5 B7 RM2.35 (0.00)
Last Updated Apr 18, 2024