![Time to add on special perils to your insurance; heavy floods expected to start in Oct 01]()
Malaysians should expect the rise in flood in the next 6 months (October 2022 to March 2023). This comes after the forecast by Malaysia’s Meteorological Department (MetMalaysia).
The rainfall is forecasted to reach up to 900 mm in November 2022 during the northeast monsoon period and La Nina period for most states in Peninsular Malaysia.
To put things into perspective, the once in 100 years’ flood that occurred in Selangor and other several parts of Peninsular Malaysia was caused by a short but heavy rainfall exceeded 380 mm on 17-December 2021.
Also read: So your car was stuck in a flood, now what do you do?
![Time to add on special perils to your insurance; heavy floods expected to start in Oct 01]()
It was described as a “month’s rain in one day”. As a result, the three-day downpour saw a total pay-out up to RM 3 million for flood-related claims.
Based on the forecast then, flooding will inevitably take place during this time of the year and therefore it’s vital that Malaysians take necessary precautions such as adding flood coverage to their insurance policy.
Also read: Flood protection for Malaysians? Think of a Ziploc bag for your car
![Time to add on special perils to your insurance; heavy floods expected to start in Oct 02]()
As reported earlier, a survey discovered that 59 percent of Malaysian motorists neglect to add flood insurance coverage when insuring their vehicles. Nonetheless, it’s important to know why you should pay extra for this add-on as it does not only cover flood damages.
When insuring your vehicle, there’s an add-on called ‘special perils coverage’. What does it cover exactly? In short, it covers your car against loss or damage caused by natural perils (natural disasters).
Also read: Senior official transferred after flash flood hit Bangkok; Sri Muda still waiting for improvements
![Time to add on special perils to your insurance; heavy floods expected to start in Oct 03]()
The extent of such coverage varies between different insurance company but usually special perils will cover floods, storms, typhoons, landslides or sediment or other convulsions of nature.
On top of that, you will also be compensated in the event of car loss or damage due to any of the natural perils.
Also read: A whole month’s worth of rain within 2 hours the reason of flash floods
![Time to add on special perils to your insurance; heavy floods expected to start in Oct 04]()
Special perils coverage add-ons vary across insurers and here are the premiums for this add-on offered by a few selected insurers in Malaysia compiled by Bjak:
|
Insurance provider
|
Special perils cover
|
Premium
(premium rate x car’s sum insured)
|
|
Zurich Takaful
|
Flood, typhoon, hurricane, storm, tempest, volcanic eruption, earthquake, landslide, landslip, subsidence or sinking of the soil/earth or other convulsions of nature
|
0.20%
|
|
Allianz Malaysia
|
Flood, typhoon, hurricane, storm, landslide, landslip or other convulsions of nature
|
0.25%
|
|
RHB Insurance Bhd (full special perils cover)
|
Flash floods, storms, landslides, earthquakes, sinking soil and other unexpected occurrences
|
0.25%
|
|
Etiqa Takaful
|
Flood, storms and tempest
|
0.27%
|
|
RHB Insurance Bhd (limited special perils cover)
|
Flash floods, storms, landslides, earthquakes, sinking soil and other unexpected occurrences
|
0.40%
|
|
Etiqa Takaful
|
Flood, typhoon, hurricane, storm, tempest, volcanic eruption, earthquake, landslide, landslip, subsidence or sinking of the soil/earth or other convulsions of nature
|
0.50%
|
Let’s say your car’s sum insured is RM 50,000 and you have chosen Etiqa Takaful to insure your car with additional special perils coverage. You will have to pay RM 250 or 0.5% for a one-year coverage.
With that being said, special perils coverage cost a very small amount when compared to repairing a flooded car as it can sometimes cost just as much as replacing the car itself.
