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Kuala Lumpur, 6 Jan 2017 – Persatuan Insurans Am Malaysia (PIAM), the General Insurance Association of Malaysia and Malaysian Takaful Association (MTA)  wish to assure flood victims, who have a flood cover as part of their general insurance policy/takaful certificate that its members are ready to pay out claims against losses caused by the current flood situation.

While standard motor and fire policies/takaful certificates 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/takaful certificates.

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

PIAM and MTA have also recommended the following preparatory measures during the wet season, if you are located in a flood prone or low lying area:-

  • Prepare waterproof containers for valuables and important documents
  • Be ready to evacuate to higher ground if you are staying at low lying areas
  • When evacuating secure your furniture and empty the refrigerator and cupboards, and leave the doors ajar
  • Electrical appliances which can be moved should be relocated to higher ground
  • Disconnect electrical appliances which cannot be moved
  • Take care of personal hygiene by ensuring drinking water is boiled
  • Stay away from fallen power lines or buildings which are flooded

If you experience a flooding incident, contact your insurance/takaful agent or insurance/takaful company to file a claim. Please follow this checklist for easy processing of your claims:-

Step 1:           Check your insurance policy/takaful certificate whether the loss or damage is covered.

Step 2:           Notify your insurance/takaful company with full details of the incident.

Step 3:           Provide complete and correct information relevant to the insured items. Describe the time, date, extent and cause of the loss or damage.

Step 4:           Complete the claims form with full details and return it together with the relevant documents such as bills, reports, etc.

Step 5:           If the loss is minor, you must provide photographs showing the cause and extent of the loss or damage.

Step 6:           Adjusters will be appointed by the insurer/takaful operators for large losses. Always request full identification of the adjusters or investigators before allowing them to assess your property.

Step 7:           You should check the time frame for claim notification as stipulated in your policy/takaful certificate.

As circumstances of each case/claim may differ, policyholders/certificate holders are advised to contact their insurers/takaful operators to report their losses to enable their insurers/takaful operators to assess the loss and process their claims as quickly as possible.

In view of the increase in weather-related natural disasters, PIAM and MTA would like to advise members of the public to review their insurance policies/takaful certificates with their insurers/takaful operators or insurance/takaful 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/takaful products offered by insurance/takaful companies to protect themselves and their businesses against such losses.

For the information of the public, both of the Associations have provided some information on coverage offered under two major categories of general insurance/takaful in Malaysia namely fire and motor.



  1. The basic Fire Policy/Takaful certificate provides coverage for the building only and covers loss or damage by fire, lightning or explosion.
  1. The Houseowner/Householder policy/takaful certificate 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/takaful certificate does not cover loss or damage caused by or arising from flood, landslide and landslip.
  1. However, the policy/takaful certificate may be extended to cover the above-mentioned risks for an additional premium/contribution.