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Kuala Lumpur, 30 December 2014 – The General Insurance Association of Malaysia (PIAM) wishes to assure flood victims, who have purchased a flood cover as part of their general insurance policy that its members are ready to pay out claims against losses caused by the current flood situation. PIAM member companies will process all flood claims so long as flood is an insured peril, regardless of whether a state of emergency is declared or not.

While standard motor and fire policies exclude coverage against losses caused by natural catastrophes such as earthquakes, tsunamis and typhoons, cover for flood-related loss or damage is optional and can be purchased as an extension to these standard policies.

All policyholders, both businesses and individuals, located at the flood-stricken areas are therefore advised to check their fire and motor policies to determine whether they are covered for loss or damage resulting from the floods.

PIAM and MTA had earlier announced that the industry is committed to offer assistance to all flood victims, including allowing the payment of annual premiums on an instalment basis and expediting the settlement of claims made by policyholders. In the case of larger claims which may require longer processing time, considerations would be given to allow for interim payments of a certain percentage of the total estimated loss pending full settlement later.

In view of the increase in weather-related natural disasters, PIAM would like to advise members of the public to review their insurance policies with their insurers or insurance agents to establish if the cover provided is sufficient to mitigate any serious financial impact due to flood losses and damages. Businesses and individuals can take up affordable insurance products offered by insurance companies to protect themselves and their businesses against such losses.

For the information of the public, the Association has provided some information on coverage offered under two major categories of general insurance in Malaysia namely fire and motor. As circumstances of each case/claim may differ, policyholders are advised to contact their insurers to report their losses to enable their insurers to assess the loss and process their claims as quickly as possible.

Alternatively, policyholders and the public can email their queries directly to PIAM at or call: 03 – 2274 7395/9.



  1. The basic Fire Policy provides coverage for the building only and covers loss or damage by fire, lightning or explosion.
  2. The Houseowner/Householder policy will provide you with additional cover such as damage due to flood, burst pipes, etc.


  1. The standard comprehensive private car, commercial vehicle and motor cycle insurance policy does not cover loss or damage caused by or arising from flood, landslide and landslip.
  2. However, the policy may be extended to cover the above-mentioned risks for an additional premium.

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. More information on PIAM can be obtained from its Web site: