The Federation of Malaysian Consumers Associations (FOMCA) has called on insurance companies to offer a 50% rebate on repair costs of vehicles affected by the recent floods. According to its president Marimuthu Nadason, this rebate could be considered as a corporate social responsibility (CSR) project for insurance companies.
Speaking to Free Malaysia Today last week, he said that up to 95% of vehicle owners won’t receive any compensation for repair costs, as many vehicles have been found to be uninsured for natural disasters like floods. “Insurance companies should look into such cases as long as they are insured with them,” he said.
He said there were several reasons why vehicle owners had overlooked insuring their cars against natural disasters. “Firstly, the majority of Malaysians are not aware that insurance policies offer optional cover for natural disasters like flooding. Secondly, insurance companies have failed to advise vehicle buyers about this coverage before they purchase their policies,” he said, adding that many had underestimated the severity of the floods.
Marimuthu said Fomca intended to send a letter to Bank Negara and the government to intervene by getting insurance companies to promote policies on natural disasters to the public.
The floods that hit the Klang Valley last month has highlighted the need for vehicle owners to ensure that they have special perils coverage included in their vehicle insurance. Should your policy not include special perils coverage, there’s not much you can do to submit a claim in the event your vehicle is damaged by floods, and you’ll likely have to fork out a lot of money to pay a hefty repair bill. It really doesn’t cost much more, as we’ve highlighted in our story on special perils add-ons.
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