THERE is bad news in store for flood victims as not all insurance policies allow claims for floods and damage to property, including vehicles.

The General Insurance Association of Malaysia (PIAM) told The Malaysian Insight not all home insurance policyholders were protected against floods.

There is also a separate option for the protection of vehicles.

“Flooding is only an optional cover under the standard fire and motor policy,” a spokesman for the association said.

“It is, however, common for the houseowner and householder policies to include floods as part of standard coverage.

“But if it is a fire policy, there is an option to extend the policy to cover floods as well with payment of an additional premium.”

The spokesman said flood coverage is not included in all policies and urged victims to check with their agents or insurers.

She said the amount of compensation will depend on the severity of losses, which will be assessed.

The amount to be paid out is also subject to the policy sum insured as well as the terms and conditions.

“Depending on the severity, the insurer may appoint an independent loss adjuster to assist in the claim,” she said.

Thousands of homes were destroyed by floods in several states following continuous rain for four days from December 17. Many vehicles, too, were submerged.

Following the floods, PIAM and the Malaysian Takaful Association (MTA) have advised the victims to contact their respective agents for advice and clarification if they are planning to make claims.

They also assured all policyholders affected by the floods that they will expedite their claims.

“If their policies cover floods, they must notify their agents and provide detailed information, including relevant supporting documents,” the associations said.

“Depending on the severity of loss, the agent may appoint an independent loss adjuster to assist them in filing their claims.”

Meanwhile, the Federation of Malaysian Consumers Associations (Fomca) has called on insurance companies to make it easy for car owners who do not have flood coverage.

“Only those who have subscribed for optional coverage can file for insurance claims. Uninsured consumers will have to fork out their money for repairs to their vehicles,” Fomca chief executive officer Saravanan Thambirajah was reported as saying.

“However, Fomca hopes that insurance companies will be considerate towards new car owners and ease their costs of repairing, where possible.

“Car service centres should also offer rebates for affected vehicle owners.”

PIAM and MTA have also urged policyholders to review their coverage to ensure their properties are insured against floods. – December 25, 2021.