3 out of 5 Malaysian motorists lack flood insurance
Only 34% are covered by flood damages such as falling trees.
As much as 59% of Malaysian motorists are not covered against flood damage, according to a survey by Zurich Malaysia.
The Impact of Pandemic on Protection survey by Zurich Malaysia revealed that in addition to flooding, landslides, and falling trees are potential perils that Malaysian motorists are not prepared for, with only one in three active motorists (34%) reported having coverage for storms including falling trees, and only 29% are covered for landslides.
The insurer said this is a cause for concern because Malaysia regularly experiences monsoon seasons, such as the current Northeast Monsoon season from November until March next year.
The Malaysian Meteorological Department has warned certain states are expected to have higher than average rainfall of between 450 mm and 1,000 mm in November and December.
The survey also found that in terms of renewing their motor vehicle insurance and takaful, Malaysians still engage agents to do so. Out of 990 respondents who own a motor vehicle, 38% chose to go through an agent despite the availability of online portals.
However, online portals were the most preferred method with 43% of the motorists utilising them.
“This shows the importance of digital tools in today’s market. Meanwhile, 16% of Malaysians opted to visit a physical kiosk or post office themselves to renew their insurance personally,” Zurich Malaysia said.
In terms of motor insurance and takaful coverage, a trend was revealed by the survey that most Malaysians prefer plans that cover all drivers (36%) instead of just named drivers in the policy (34%).
The Impact of Pandemic on Protection survey was conducted in late September 2021 in which 1,201 Malaysians from all states were engaged. Out of 1,201 Malaysians, 990 were vehicle owners.