Malaysians were once again reminded of the stark reality that changing climate and weather patterns means severe flooding no longer only occurs in the monsoon season months of November and December. This can be seen from the recent flood in southern Johor where unabated torrential rain had displaced 40,000 people with fatalities reported. Based on media reports, the Meteorological Department had warned of more rain in the coming days, mostly in the southern states of the country.
This is despite the fact that the people and businesses have barely fully recovered from the overall flood losses of RM6.1 billion that affected several states in late December 2021 and early January 2022 as highlighted in the Special Report on Impact of Floods in Malaysia 2021 issued by the Department of Statistics Malaysia. All PIAM members stand ready to render assistance to their policyholders to minimize the financial impact of the recent flooding through an expedited claims process and special considerations on a case-to-case basis.
Policyholders are advised to contact their intermediaries or insurers for further advice as the scope of cover, terms, and conditions including relief measures accorded by one insurer may differ from another.
Malaysians are reminded that flood cover is widely available as all PIAM member companies provide flood cover under their comprehensive motor and fire policies with additional premiums subject to respective underwriting discretions.
Contrary to common perception, flood coverage is affordable as the additional motor premium for flood cover is estimated to range from RM0.08 to RM1.74 per day. As for fire insurance, the additional premium for flood cover (for risks below RM10
million) is only 0.086% of the sum insured, a small price to pay given the exposure to flood that had caused millions of losses to properties every year. For a sum insured of RM200,000, this is translated into an additional premium of 47 cents per day or RM14 per month. As for tariff house owner and householder policies, flood cover is included as part of standard coverage.
Policyholders are therefore encouraged to review their motor and fire policies to ensure that they are adequately protected from flood losses and contact their intermediaries or insurers who stand ready to provide them with the necessary
assistance.
