With the frequent occurrence of floods, many car owners are considering purchasing natural disaster insurance for their cars. A number of insurance companies have issued notices that they will strictly approve applications for natural disaster auto insurance in flood blacklisted areas. It is understood that if you are in an area that has recently experienced severe flooding, you will not be able to purchase natural disaster auto insurance for your car during this time.
It is unclear how long insurance companies will continue to tighten auto insurance applications, but a conservative estimate is that it will last at least three to six months, or until the end of the northeast monsoon season.
The purpose of insurance companies tightening auto insurance applications is to prevent car owners from committing fraud, i.e., renewing their auto insurance policies early and then claiming from the insurance company for their flooded cars.
Generally, natural disaster auto insurance covers 3 types of disasters, namely tree fall, landslides and floods. The premium for natural disaster car insurance is 0.2% to 0.25% of the price of the car. For example, for a RM100,000 car, you will need to pay RM200 to RM250 for natural disaster car insurance.
Natural disaster auto insurance must be added at the time of your renewal and cannot be added mid-term.
