Flood Insurance Payout Assured
KUALA LUMPUR, Dec 30 – Dispelling fears that insurance compensation may not be paid on damage from floods, the General Insurance Association of Malaysia (PIAM) today said its member insurance firms “will process all flood claims so long as flood is an insured peril, regardless of whether a state of emergency is declared or not”.
However, PIAM also said in a statement that compensation is available only if flood coverage is part of the insurance policy. “While standard motor and fire policies exclude coverage against losses caused by natural catastrophes such as earthquakes, tsunamis and typhoons, cover for flood-related loss or damage is optional and can be purchased as an extension to these standard policies.
“All policyholders, both businesses and individuals, located at the flood-stricken areas are therefore advised to check their fire and motor policies to determine whether they are covered for loss or damage resulting from the floods.” For most Malaysian insurances, the basic fire policy provides coverage for the building only and covers loss or damage by fire, lightning or explosion, said PIAM.
It said such policies will provide additional cover such as damage due to flood and burst pipes only as optional extras. “The standard comprehensive private car, commercial vehicle and motor cycle insurance policy does not cover loss or damage caused by or arising from flood, landslide and landslip. “However, the policy may be extended to cover the above-mentioned risks for an additional premium.”
Both PIAM and the Malaysian Takaful Association had earlier announced the industry is committed to offer assistance to all flood victims, including allowing the payment of annual premiums on an instalment basis and expediting the settlement of claims made by policyholders.
“In the case of larger claims which may require longer processing time, considerations would be given to allow for interim payments of a certain percentage of the total estimated loss pending full settlement later.”
In view of the increase in weather-related natural disasters, PIAM advised the public to review their insurance policies with their insurers or insurance agents to establish if the cover provided is sufficient to mitigate any serious financial impact due to flood losses and damages.
The association has also provided some information on coverage offered under two major categories of general insurance in Malaysia namely fire and motor. It said policyholders and the public can email their queries directly to PIAM at [email protected] or call 03 – 2274 7395/9.
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