KUALA LUMPUR: The comprehensive motor insurance flood take-up rate has more than doubled to 12 per cent in the first half of 2022 (1H22) from five per cent for the full-year 2021.
General Insurance Association of Malaysia (PIAM) said this was due to higher consumer awareness of the risks of damage to property and assets that arose from recent flash floods.
The fire (Material Damage) insurance flood take up rate increased slightly to 31 per cent in 1H22 from 30 per cent in 2021.
"All PIAM member companies offer an extension for flood coverage under the comprehensive motor and fire policies with an additional premium and at the individual insurer's underwriting discretion.
"Consumers are advised to review their policies and check on the coverage offered with their intermediaries who are ready to assist in providing the necessary information as the coverage, terms and conditions may differ between one insurer and another," it said in a statement.
PIAM said flood coverage was more affordable.
Based on a comparison of three different types of vehicles, the additional premium for flood extension coverages ranges from eight sen to RM1.74 per day.
"The rate for flood extension coverage under a standard tariff policy for risks below RM10 million is 0.086 per cent - an affordable sum given the amount of protection provided for losses resulting from floods.
"For instance, a property with sum insured of RM200,000 would incur an additional premium of about RM172 per annum (47 sen per day or RM14 per month)," it said.
The association urged homeowners to take up houseowner insurance and also considered including householder (home contents) cover as flood and various other perils (extension cover) were usually included.