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When To Claim Your Car Insurance During Flooding Season?

BY Team Loanstreet

Updated 27 Mar 2023

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*This article was first written by MK Zainal. It was translated from "Kereta Korang Boleh Claim Insurans Banjir Bila..." by Nisya Aziz. The content and information on this article might be changed or updated periodically by Team Loanstreet without notice.

Flooding season again - it's a sad situation, especially during these trying times. Dah lah the car/motorcycle and/or house got flooded, now people must be feeling they're underwater; thinking about how much money was flowing because of the damage.

Perhaps some of you who are affected by the flood have this question in mind, "Does my insurance cover if the car gets flooded?" The short answer to this question is ... YES. But, it's not that simple because insurance DOES NOT cover natural disasters.

What's covered in this article?

So, what type of insurance covers floods and other disasters?

According to the General Insurance Association of Malaysia (PIAM), three types of vehicle insurance are commonly offered, namely:

  • Third-party protection
  • Third-party protection against fire and theft
  • Comprehensive protection

In addition, you can also get additional protection, as in the table below translated from PIAM:

Third-Party Protection Third-Party Protection for Fire and Theft Comprehensive Protection Additional protection on Comprehensive Protection
Also known as a Third-Party Policy Also known as a Second Party Policy Also known as the First Party Policy Depending on the insurance company and also the premium payment over
Death or injury to another party Death or injury to another party Death or injury to another party Windshield break
Damage to the property of another party
Damage to the property of another party
Damage to the property of another party Damage caused by floods, storms, landslides or other disasters
N/A Loss/damage to vehicles caused by theft or fire Loss/damage to vehicles caused by theft or fire Damage to your vehicle caused by Malicious Intent or Riot, Strike or Public Instability
Damage to your vehicle caused by an accident
Personal Accidents and Health Benefits to drivers and/or passengers
N/A N/A N/A Liability to passengers
N/A N/A N/A Liability to third parties caused by passengers

As you can see from the table above, insurance will only cover your car in the event of a flood if you subscribe to Comprehensive Coverage along with additional coverage for natural disasters. This package may vary according to the insurance company, so go check with your insurance company.

For example, for comprehensive protection from Zurich called Zurich Z-Driver, there is stated protection for floods, storms, and hurricanes only when you get additional protection.

Comprehensive protection is already the most expensive compared to other types, then the top-up is more for additional protection. But if you love cars and live in Selangor or Kelantan (or any place that is always flooded, do not be triggered eh), you can take this insurance if you can afford it.

How much do you have to pay for this extra protection?

We called Etiqa at their hotline and the calculation is actually pretty simple. To get additional protection for the flood, you have to pay more than 0.5% of your Sum Assured (limit you can claim). For example, if your sum assured is RM30,000, you have to pay RM150. Not that much, right? If you were to compare it to paying the damage on your own.

Keep in mind that when you claim this natural disaster, you have to claim under Own Damage (OD) which will cause you to lose the right of No Claim Damage (NCD). But do you want to care about NCD when your car is stranded in the water? If you still do not have additional protection for natural disasters, it is good to add now.

If you are not sure which insurance offers additional protection for natural disasters, take a look at our car insurance page and get a quote now. Free je beb, no loss or whatsoever. Whoever intends to buy vehicle insurance can also settle directly on the insurance page - easy, save time and most importantly can protect your beloved car.

*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the articles.


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About the Author

Team Loanstreet

Run by a professional human-sized team, get resourceful tips & guides from our very own library of financial articles that can help improve your financial lifestyle & make a well-informed money decision. We strive to provide you with the best service in helping you to get the most out of that DUIT!


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