(Photo Credit: Reuters)
With flash floods becoming the norm in the past months here in Malaysia, flood insurance coverage has established itself as a commonly discussed topic. But what is it actually and do you really need it?
As we’ve learned, motor insurance is very important for every car owner here in Malaysia. It offers a degree of financial protection and some peace of mind in case you’re met with undesired situations with your vehicle such as road accidents. The post-accident stress is lessened —at least with regards to your financial situation— knowing that you have this protective shield.
Other than the three main forms of motor insurance, comprehensive, second party, and fire and theft, there are also various additional forms of coverage that you can take up for further protection. One such example is flood coverage. It helps cover flood damage-related repairs that can be quite pricey due to the severity and complications of getting flood water into your car's system.
Malaysia has a colourful history when it comes to flash floods such as the 2014 floods that claimed the lives of 25 people and destroyed more than two thousand homes. Earlier this year, flash floods hit Klang Valley laying waste to more than a hundred houses and many more vehicles. With all this in mind, it is quite worrying to note that only 18% of vehicles have flood cover here in Malaysia.
So what’s the issue?
(Photo Credit: Pexels)
The issue against getting flood coverage for their vehicles revolves around the common points people have against insurance in general. The extra cost and its deemed unnecessity together with the stubborn mindset of “it won’t happen to me” or “I can take measures to avoid it”. This age-old battle between customers and insurance companies is a major concern and in many ways, this mentality is very much flawed.
If we’re talking about costs, the price to salvage a flood-damaged MyVi or Axia is about RM20,000. The price of getting flood coverage is about RM300 to RM500, a measly figure in comparison, especially when considering the likelihood of floods here.
This especially applies to those living in the more commonly affected areas such as Selangor, Pahang, and Klang Valley. We highly urge you to seek flood coverage now, during non-monsoon seasons where it’s really easy to forget about the risk. Hindsight is the name of the game and regret is really an emotion you don’t need in emotional situations such as natural tragedies.
If you’re looking for some help with flood coverage on your insurance plans, you can always hit us up and we’ll take a look for you! As always, stay safe on the roads Motorists!