Kuala Lumpur, 4 January 2024 – With persistent torrential rain affecting numerous states in Malaysia, it’s crucial for Malaysians to take immediate measures to protect their property and belongings. This proactive measure is to ensure a faster post-flood recovery.

Undoubtedly, among the various disasters in Malaysia, floods are a recurring challenge, especially during monsoon season, causing substantial annual damage. The Special Report on Impact of Floods in Malaysia 2021 issued by the Department of Statistics Malaysia [1] reported overall losses of RM6.1 billion resulted from floods that affected several states in late December 2021 and early January 2022. Recent flash floods in Malaysia also have caused widespread damage to property and financial losses nationwide. With the monsoon season gaining momentum, an increase in flooding is anticipated.

Whilst the awareness of flood coverage has risen as seen evident in the take-up rate for comprehensive motor insurance from 12% to 14% in the first half of 2023, there is still a need to raise awareness on flood exposures and protection due to climate change and changes in topography as flood risk has become much more severe.

Source: Data from ISM @ 11/10/2023. Figures are in UW Year basis and data is for General Insurance and MMIP only.


Additionally, the Fire insurance flood take-up rate has seen a slight increase to 33% in first half of 2023, as compared to the full year 2022 at 31%.



Source: Data from ISM @ 11/10/2023. Figures are in UW Year basis and ​data is for General Insurance companies.​


Accessible flood coverage

All PIAM member companies offer an extension for flood coverage under comprehensive motor and fire policies. This enhanced coverage comes with an additional premium and is subject to the individual insurer’s underwriting discretion. Consumers are advised to thoroughly review their policies and consult their intermediaries for detailed information. Intermediaries are well-equipped to assist in clarifying the varying coverage, terms, and conditions, as these aspects may differ among insurers. This proactive approach ensures that policyholders are well-versed about the specifics of their coverage and can make informed decisions based on their individual needs and circumstances.


Affordable flood cover

Flood coverage is more affordable than you think. Based on a comparison of three different types of vehicles as illustrated below, the additional premium for flood extension coverages ranges from RM0.07 to RM1.47 per day [2].

Car Model Proton Saga 1332CC Toyota Camry 1998CC Mercedez Benz AvantGarde 1991CC
Specifications NCD: 45%

Year Make: 2015

Sum Insured: RM13,000

With Special Perils

NCD: 45%

Year Make: 2015

Sum Insured: RM64,000

With Special Perils

NCD: 45%

Year Make: 2015

Sum Insured: RM107,000

With Special Perils

Premium Approx.

RM180–RM390 p.a.


RM600–RM1,300 p.a.


RM920–RM1,960 p.a.

Flood Cover

Premium (add on)


RM25–RM65 p.a.


RM130 – RM320 p.a.


RM200 – RM535 p.a.

Flood Cover


(add on p/day)


RM0.07–RM0.18 p/day


RM0.36–RM0.88 p/day


RM0.55–RM1.47 p/day


The rate for flood extension coverage under a standard tariff policy for risks below RM10 million is 0.086% – an affordable sum given the amount of protection against losses resulting from floods. To put into perspective, a property with a Sum Insured of RM200,000 would only incur an additional premium of approximately RM172 per annum (equivalent to RM0.47 per day or RM14 per month). Homeowners are encouraged to opt for houseowner insurance and consider including householder (home contents) cover, as these policies typically provide protection against floods and various other perils through extension coverage. This approach ensures comprehensive insurance against potential risks while keeping it affordable for homeowners.


Flood risk in Malaysia

According to a report by Malaysian Re on Malaysian Insurance Highlights 2022[3]:

“Throughout Southeast Asia, the pattern of the monsoon seems to have changed and devastating rainfalls have become more frequent. Climate change seems to be taking its toll.”

In light of this, it is strongly recommended for Malaysians to take proactive measures to safeguard their assets against the risks of floods, natural disasters, and fire damage. Malaysians are advised to thoroughly review their current insurance coverage, ensuring that it is robust enough to meet their individual needs and circumstances.


  1. Department of Statistics Malaysia, Release Date: Friday 28, January 2022, https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=496&bul_id=ZlkxS0JnNThiRHk0ZllZajdyVm44UT09&menu_id=WjJGK0Z5bTk1ZElVT09yUW1tRG41Zz09
  2. Notes:
    i. NCD = No Claims Discount.
    ii. The illustration above is for general reference only and cannot be taken to be absolute rates provided across the market, received from 17 PIAM member        companies up to 5 December 2023.
    iii. The illustration above demonstrates an estimate/ range you may be expected to pay for Special Peril (which includes flood coverage) extension.
    iv. Lower Premium rate does not mean lower special perils rate as it differs from one insurer to another.
    v. The premium and consequentially the special peril premium will vary according to Sum Insured which is dependent on underwriting criteria.
    vi. The illustrated premium is based on Gross Premium EXCLUDING applicable tax & stamp duty.
    vii. Please check with your agents/ brokers/ insurance companies for further details.
  3. Malaysian Re – Malaysian Insurance Highlights 2022: https://www.malaysian-re.com.my/api/uploads/MIH_2022_Web_6e05b6fdf1.pdf


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About 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 23 member companies. More information on PIAM can be obtained from its website: www.piam.org.my.

Media Relations Contact:

Ms Susanna G. Simon

Manager, Consumer Education, PR & Corporate Communications, PIAM

Tel                   : +603-2274 7399

Fax                  : +603-2274 5910

E-mail              : susanna@piam.org.my