Theweather in Malaysia is getting more erratic and out of reach. In fact,climate change causes the country to  be at risk of being hit by various forms of disasters that are increasingly frequent, especially floods, land collapses and noisy.  Natural disasters are events that prevail without human intervention, which gives a negative impression of life and people. In many cases, humans are responsible for the seriousness of a natural disaster, the effect of technical misappropriation, negligence, or the result of  unsustainable development design.

Malaysia is expected to continue to face more frequent natural disasters in the futureas well as the unexpected occurrence of kawasan.  Tiada who thought the Jelebu district of Negeri Sembilan which was recorded as the driest area could even be hit by an extraordinary flood.  Thus, insurance for protection due to natural disasters is now a necessity that cannot be ruled out as much as loan and vehicle protection insurance to ease  the burden of  the victims and the government.  Disasters show us the loss that victims have to bear as a result of the destruction of property including shelters and even flooded vehicles.  For example, a major flood that hit the country atthe end of 2021 saw 48 lives lost while the total loss was estimated at RM6.1 billion.

Rakyat Malaysia should understand that they have a responsibility in obtaining adequate protection, and proper protection for their assets based on their foreign capabilities.  However, many households in Malaysia do not take out natural disaster protection contribution insurance.  The fact is that  natural disaster insurance coverage has been offered for a long time but many do not subscribe to the coverage due to the additional premiums that need to be clarified.  In addition, the low rate of disaster protection is due to the fact that many think of Malaysia's geographical factors that are not within the range of natural disasters like most other countries.  Allianz General reported only 11 percent or in 123,000 of the 1.11 million customers opted for special peril protection in private car comprehensive protection in 2021. However, following  last year's major  floods, the Company has seen a take-up rate of 22 per cent from 68,000 customers (new and renewal) between 1 and 17 January 2022.

There are several insurance companies in Malaysia that offer natural disaster insurance including floods, landslides and others such as Alliance, Zurich, Etiqa Takaful, Axa Affin, AM by Ambank, RHB Insurance.  Special Perils Coverage is aform of insurance coverage for vehicles as a result of natural disasters. These include floods, hurricanes, landslides or fallen trees. If our vehicle is  involved in any natural disaster, then we will nothave to have to spend money from our  own pocket to repair the vehicle as it is all borne by the insurance.

Overall, the  coverage rate for these special perils does not exceed 1%, and some even offer as low as 0.2% and some as high as 0.5%. Since the count is based on the number of casesof total vehicle coverage, basically the more expensive the vehicle, the higher the amount to be paid for the insurance.  If the current value of the car coverage is RM50,000 and you take out insurance to apply Special Perils Coverage,the amount to add is only about 0.2% which is RM100 together with the annual car insurance subscribed.  Natural disaster insurance for the house  covers two important things, namely, the building of the house and the property that is in the house.

In short, disaster insurance aims to reduce losses and restore the lives and businesses of disaster victims. It is estimated that between RM2 to RM3 billion of flood-related claims were received by the general insurance industry following the floods that hit several states at the end of December 2021.  Therefore, it is worth taking the Special Perils Coverage offered by the company insuran, as it can not only cover the cost of       damage due to banji r only, but also natural disasters such as landslides, even fallen trees that hit our cars even where we are  take out additional insurance of these natural disasters.

Date of Input: 07/10/2022 | Updated: 07/10/2022 | nooryati