The region of Selangor faced a major flood on December 18 and many cars were damaged as a result. As a car owner, do you know if you can claim from the insurance company for the damage caused by the flood?
According to the Malaysian General Insurance Agents Association, the general car insurance package does not include compensation for car damage caused by flooding,. But car owners can get the relevant coverage if they purchase additional insurance.
Most people do not buy additional insurance for flood damage. Currently, only 5 out of 1,000 people buy additional coverage. Those who buy additional insurance usually have a deeper concern because their cars are more expensive.
The difference in premiums between car insurance and additional insurance is based on the amount of coverage on the car itself. For example, if the sum insured of the car is RM100,000, multiplying RM100,000 by 0.5% is the premium for the car in case of flood. Which is equivalent to RM500 that the car owner has to pay, which does not include the cost of basic and comprehensive insurance.
In other words, the car’s sum insured multiplied by 0.5% is the premium for the additional insurance, and the car owner must first purchase the comprehensive insurance before the additional insurance can be purchased. At the same time, insurance agents often suggest additional insurance when they understand that the insured’s income is high, especially since some car owners often park their cars in underground parking lots where flooding is more likely to occur.
In addition, after a car is damaged by flooding, everything must be valued by an appraiser, depending on the value of the car and the extent of the damage, but the compensation will not exceed the value of the car. The claim procedure includes taking the car to a Panel Workshop recognized by the insurance company and notifying the insurance company, which will then send an independent appraiser to understand and make an estimate, and the list issued will be sent to the insurance company, which will make a decision on compensation.
The insurance company will rationalize the compensation based on logical circumstances. If the insured does not receive the compensation to which he or she is entitled, he or she may file a complaint with the insurance company. In addition to flooding cases, additional coverage includes such things as driver-passenger coverage, mirror coverage, and natural disaster coverage.
