Image Source: Kosmo
It's a sad situation, especially during these trying times. Already, the car/motorcycle and the house went into the water because of the flood, now the people must be feeling they're underwater thinking about how much money was flowing because of the damage.
That's why at this time you have to ask ... does your 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.
Before we talk about that, did you know that...
Your license can be revoked if you do not have insurance!
Some may not know that vehicle insurance MUST be purchased by all vehicle owners, including cars, motorcycles, cement mixing trucks, and so on. Under the Road Transport Act 1987, Section 90, you can be fined up to RM1000 or jailed for up to 3 months or both if you do not have insurance. Additionally, your license can be revoked for up to a year!
So, what type of insurance covers floods and other disasters?
According to the General Insurance Association of Malaysia (PIAM), there are three types of vehicle insurance that 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 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.