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Kuala Lumpur, 6 November 2015 – In preparation for the monsoon season which commences in November and only ends in March, the General Insurance Association of Malaysia (PIAM) has urged the public to be prepared to protect their assets from possible flood damage and other natural disasters, like landslides.
While flooding is a common occurrence in our country, it causes hardships to the public in affected areas and heavy losses are incurred to properties and businesses. The monsoon season brings heavy rainfall with strong winds causing flash floods at low-lying areas.
A flood can happen in the middle of the night when you are sleeping or when you are out of town for a holiday. It is something that may occur at the most unexpected moment, and you will be helpless when it happens. This is why you need to get flood insurance, which is a specific insurance policy that protects your property against damage caused by flood. You must also be prepared to evacuate when the incident occurs. PIAM has advised the public to take early precautionary measures to prevent losses of lives and properties.
“While we enjoy a generally warm weather pattern throughout the year, Malaysia experiences floods in November and December. As experienced last year, a total of 8,538 claims were lodged with insurance companies amounting to RM308.3 million” said the Chairman of PIAM, Mr. Chua Seck Guan.
PIAM highlighted that if these properties were not insured, the property or business owners would have had to bear the losses themselves. The Association advises the public to have their properties and contents properly insured as this would be in their own interest.
Owners should not only insure their buildings, but also its contents, be it for homes or businesses. Insurance policies should provide cover against damage or loss caused by flood and other extraneous perils such as explosions, storm/tempest and theft, apart from fire and lighting.
In addition, the insurance industry responding to the public’s need, had developed the 1 Malaysia Micro Protection Plan (1MMPP) in 2011 with the support of Bank Negara Malaysia. The 1MMPP enhances the accessibility and affordability of insurance and takaful protection for Malaysian micro enterprises and individuals. The plan provides coverage for loss or damage to properties due to fire, flood and storm and tempest perils at a very low monthly rate of 0.03%. The plan has been made available through selected banks and financial institutions, which are currently collaborating with participating insurers and takaful operators to distribute the product.
The public is advised to contact their insurance company or insurance agent for guidance on the best insurance cover to meet their specific needs.
PIAM has 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 carried should be moved to higher ground
- Disconnect electrical appliances which cannot be carried
- Take care of personal hygiene by ensuring drinking water is boiled
- Stay away from fallen power lines or buildings which are flooded
After experiencing a flooding incident, contact your insurance agent or insurance company to file a claim. Please follow this checklist for easy processing of your claims:-
Step 1: Check your insurance policy or certificate whether the loss or damage is covered
Step 2: Notify your insurance 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 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
Everyone is at risk and the risk is real. Make a smart decision now by getting yourself and your business protected. For more info, visit our website at www.piam.org.my