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Kuala Lumpur, 30 July 2014 – In a statement issued today, the General Insurance Association of Malaysia (PIAM) clarified the insurance coverage and claims options available to the next-of-kin of victims of the MH 17 tragedy.

PIAM revealed that there have been many queries on the coverage that general insurance policies provide against the speculated causes of the MH17 incident, namely Terrorism and Acts of War [generally refers to war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, etc.].

It was highlighted that in Malaysia, acts of terrorism are covered by a majority of travel insurance policies available locally. However, these are subject to underwriting practices of the respective general insurers and the area of travel. It was pointed out that an act of war is excluded under all circumstances in Travel Insurance and Personal Accident policies sold by all Malaysian general insurers.

PIAM also highlighted that while travel insurance policies may share common features, there can be differences in the scope of coverage and the claims payment are subject to a cap, i.e. on the sum insured. As such, it is important for an insured or his beneficiary to check carefully the coverages and exclusions of the Travel Insurance plan purchased. Family members of the crash victims are advised to contact their insurance company to get a better understanding of the policy coverages.

The contact details of all general insurers are available on PIAM’s website at

According to the PIAM Chairman, Chua Seck Guan, under the multilateral air travel treaty known as the Montreal Convention, all airlines are liable to pay damages of between US$150,000 and US$175,000 (RM477,000 to RM557,000) for each passenger killed or injured in any airline accident, even if the cause of the accident is an act of war or terrorism. The airline is also obligated to make these payments regardless of whether it is at fault.

PIAM and its member companies had earlier expressed that the industry is deeply saddened by the loss of lives as a result of the MH 17 tragedy which has left the nation in shock. It is a priority for the industry now to provide their full support and assistance to the families of the crash victims.

PIAM has advised that for more information about the processing of claims involving this incident, interested parties can visit PIAM’s website, to review a detailed FAQ on the claims process of cases involving MH17. Alternatively members of the public/ interested parties can also email queries directly to PIAM at

About the General Insurance Association of Malaysia (PIAM)

PIAM is the national trade association of all licensed direct and reinsurance companies for general insurance in Malaysia. Currently, PIAM has 29 member companies.