RM18.8 million in vehicle losses from floods in 2022 – why Special Perils insurance add-on is necessary – paultan.org
There’s no denying that floods have a substantial, far-reaching impact on those affected by them, and nowhere is this more evident when the losses caused by floods are measured on a financial scale.
In a special report on the impact of floods in Malaysia, the Department of Statistics Malaysia (DOSM) revealed that the country suffered RM622.4 million in losses due to floods in 2022. While the overall total pales in comparison to 2021’s losses, when a whopping RM6.1 billion in losses was recorded, the damage in psychological terms is no less severe, certainly not to those affected by such disasters.
The report broke down areas where losses were incurred. Public assets and infrastructure topped the list with RM232.7 million (2021, RM2 billion), followed by housing at RM157.4 million (2021, RM1.6 billion) and
agriculture at RM154.5 million (2021, RM90.6 million). Business premises were also hard hit, suffering RM50.3 million in losses last year (2021, RM525.8 million).
On the automotive front, vehicle losses in 2022 amounted to RM18.8 million, which was well down from the RM982.8 million recorded for the segment in 2021. Of course, that’s scant consolation to those whose cars were damaged by flood waters, especially those without appropriate coverage, in this case for special perils.
The risk of floods is often overlooked when purchasing car insurance, and so the flood coverage or special perils box is usually never ticked. If you don’t have it, there’s not much you can do to submit a claim in the event your vehicle is damaged by floods (or any other form of natural disasters).
Last year, Zurich Malaysia reported that 59% of Malaysian motorists don’t have adequate protection against flood damage, based on its Impact of Pandemic on Protection survey that was conducted among 990 vehicle owners in September 2021. The statistics above is a reminder that undesirable situations can happen, and it’s best to be prepared.
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