PIAM: Insurers expected to pay RM 3 Billion in flood damage claims

General insurers are expected to pay out up to RM 3 billion in total flood-related claims in the coming weeks and months.

These estimates include actual and potential personal lines and commercial risks claims directly resulting from the recent flash floods and the upcoming monsoon season.

It is estimated that more than 34,000 people have been displaced following severe flooding in at least seven states thus far.

Also read: No flood insurance? Repairs too expensive? Try selling your old car to Pickles!

In an earlier statement, the General Insurance Association of Malaysia (PIAM) further assured that their member companies are ready to render assistance to all policyholders affected by recent floods.

Additionally, PIAM will also be contributing RM 2.43 million, to a newly established Flood Relief Fund as a Corporate Social Responsibility (CSR) initiative to support the adversely affected motoring community during these difficult times.

This initiative goes above existing commitments by insurers to:

• expedite claims settlement,
• provide additional special relief measures, and
• further ad hoc ex-gratia (voluntary payment) 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 RM 500 for cars/commercial vehicles and RM 100 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 1-June 2021.

Also read: So your car was stuck in a flood, now what do you do?

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