PIAM says that due to the unusual flood disaster the country endured, the general insurance industry is potentially facing upwards of RM2 Billion – RM3 Billion in total flood-related claims exposure. These estimates include actual and potential personal lines and commercial risks claims directly resulting from the recent flash floods and the upcoming monsoon season in the weeks and months ahead.
However, this payout is seen as a way for those insured for flood calamities to receive compensation for the difficulty they have endured. In doing its part to help ease the burden of the victims, the industry is donating RM2.43 Million to a newly established Flood Relief Fund as a Corporate Social Responsibility (CSR) initiative. This general insurance industry’s initiative will be over and above existing commitments by insurers, since the flood disaster occurred, too, expedite claims settlement, provide additional special relief measures, and further ad hoc ex-gratia assistance, as determined by individual general insurers.
This CSR assistance will initially be in the form of a subsidy towards a clean-up at workshops for vehicles directly affected by the floods (note: not repairs at this stage), capped at a one-off per vehicle subsidy of RM500 for cars/commercial vehicles and RM100 for motorbikes. Claimants will need to produce requisite evidence of flood damage to their vehicles and proof of previous insurance cover. The said vehicle must be either currently insured (any type of Motor policy with or without flood cover is eligible) or a vehicle that was last insured on 1st June 2021. At this stage, the Fund will be closed once the pledged amount of RM2.43 Million has been exhausted.
PIAM welcomes contributions from other parties or industries towards this Flood Relief Fund which will extend the longevity of the Fund and consequently assist more affected motorists. The association states that operational aspects and details on how affected motorists can claim towards this initiative will be announced soon in due time.