Most Malaysian motorists lack flood cover despite rising disaster losses
A MAJORITY of Malaysian motorists have no additional insurance protection against flood damage, leaving them to bear the cost of repairs or replacing their vehicles when disaster strikes. Only 14% of motor policyholders have taken up additional flood...
Only a small fraction of Malaysian motorists, 14%, have opted for additional flood coverage on their motor policies, compared to 33% among fire and property insurance holders, according to the General Insurance Association of Malaysia (PIAM). Chua Kim Soon, PIAM's chief executive officer, expressed concern over this low uptake, especially as Malaysia anticipates the monsoon season.
Flood damage incurred nationwide reached RM933.4 million in 2024 and RM636.9 million in the previous year, according to Department of Statistics Malaysia (DOSM) figures. Chua urged vehicle and property owners to verify their policies instead of assuming automatic coverage against natural disasters, as flood protection is not always included in standard plans.
For comprehensive insurance holders, an extra extension is required to cover flood damage, while homeowners' coverage varies based on policy type and selected protection. The financial consequences extend beyond damaged homes and vehicles; public assets and infrastructure faced RM380.2 million in flood losses last year, up from RM303.4 million in 2024.
Flood-related losses accounted for 0.03% of nominal GDP in 2025, down from 0.05% the previous year, according to DOSM data. Chua noted that Malaysia also experiences over 100 landslide incidents and thousands of cases involving fallen trees during thunderstorms annually. Changing weather patterns have exacerbated the issue, with flash floods occurring outside the typical monsoon period.
The cost of additional protection may be more affordable than property and vehicle owners anticipate. Flood coverage for a RM100,000 home could cost less than RM90 in extra premium, while for a vehicle of the same value, it ranges from RM150 to RM500. Chua emphasized that flood insurance is not a necessity for all owners but advised them to consult insurers or agents to understand their existing coverage, the cost of extending protection, and potential risks associated with their location.
PIAM does not intend to make flood insurance compulsory for all property and vehicle owners, leaving the decision to policyholders based on their individual risk exposure and financial capabilities.
Written by urgent.news from The Vibes's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
