With its equatorial climate and presence of two monsoon seasons, one of the most common natural disasters in Malaysia is flood. But this natural disaster is made worse in recent years due to the fallout from global climate change, as evident in the unprecedented flood disaster that has hit both urban and rural areas early this year.
Citing a staggering statistic from the General Insurance Association of Malaysia (PIAM), only 4% of Malaysians nationwide have purchased flood insurance coverage.
With the coming monsoon season and rainfall, flood risk is imminent. It will also continue to pose a huge concern once again as many Malaysians are still uninsured against flood.
AXA Affin General Insurance (AXA) added that during one of the floods that has hit our country last year, more than 80% of vehicles that AXA towed did not have flood cover.
“In truth, people only realise the importance of insurance protection after a significant incident, when they have no compensation or means of replacing their damage and losses. Such mindset should change as insurance is not about prediction or investment, but a precautionary measure to protect against unforeseeable risks and ensure greater financial protection and peace of mind,” Emmanuel Nivet, Chief Executive Officer of AXA said.
Flood insurance is a necessity, and it is important to adequately insure vehicles, homes, and belongings to minimise the financial impact of such a peril should it arise. As flood is an optional cover under most comprehensive motor policies, Malaysians are advised to purchase or add on their insurance plan to include Flood or Special Perils cover (which insures against not only flood, but also storm, landslide, or other convulsions of nature).
Meanwhile, to foster greater awareness and adoption on flood insurance, AXA has launched #BeFloodSmart campaign on its social media platforms to share educational tips and information about flood and insurance protection.
