KUALA LUMPUR: The take-up rate for special risks protection from disasters among Malaysian homeowners is lower than in other countries.
Allianz General Insurance Company (Malaysia) Bhd deputy chief sales officer Sazali Abdul Rahman said Malaysia is geographically outside the 'Pacific Ring of Fire'.
"Malaysia is affected by moderate environmental disasters but seldom affected by severe disasters like other countries.
"There are many types of insurance products in Malaysia, but homeowners still choose not to take out flood cover (home insurance) and special perils (protection from landslides, floods and other natural disasters)," he said at Allianz's media forum today.
Sazali said data from Allianz General revealed that only 11 per cent or approximately 123,000 out of 1.11 million customers chose special perils to cover as part of their private car comprehensive cover in 2021.
However, following the floods last year, he said the company saw a take-up rate of 22 per cent or approximately 15,000 out of 68,000 customers (new and renewals) between January 1 to 17, 2022.
Meanwhile, Sazali said when insuring a home, a homeowner or tenant should consider an insurance cover that reflects the value of the house to avoid over or underinsure the house.
He said the Smart Home Cover by Allianz General offers comprehensive protection that includes HouseOwners that covers residential buildings against damage while HouseHolder covers household contents and personal effects, mortgage loan instalment protection, home-fix, and landlord insurance.
Besides that, Sazali said Allianz General also offers Allianz KampungKu, which provides basic protection for kampung homes and household contents against fire, flood, and windstorm risks.
He said this includes an RM10,000 sum insured and RM1,000 for flood for a premium of only RM75 annually.
"Allianz General also offers Allianz PerlindunganKu, which provides all-year-round protection for accidents and illnesses from only RM50 per year.
"What's more, under the Perlindungan Tenang Voucher Programme, eligible Bantuan Prihatin Rakyat (BPR) recipients can redeem their RM75 voucher towards purchasing affordable insurance such as Allianz PerlindunganKu at no additional cost," he added.