Is Your Vehicle Covered by Peril Insurance? What Is It? How Do I Get It?

Heavy rainfall has wreaked havoc across several states in Peninsular Malaysia and in certain parts of the country. Many had to watch their homes and belongings wash away while being stranded for 10 hours in the flood before help arrived. Families have been displaced, businesses have ground to a halt and some have even lost their lives. But the great thing about the people of a nation is that they are united in helping those in need.

Now, some of you might have had the bad luck of having your car submerged in floodwaters. If the car is not completely damaged, even the salvageable has to undergo numerous repairs to get it back up and running and that is costly, to say the least.

When damages to your car are caused by Mother Nature through floods, landslides or storms, does your car insurance cover the cost of repair or loss? Most drivers opt for the basic insurance coverage; at most, an add-on windscreen coverage.

Water damage caused by floods is very expensive to repair. But the additional premium to cover for acts of God is relatively low – that is 0.5% of the insured amount.

Eg.

• Insured amount  = RM80,000.
• Additional premium = RM80,000.00 x 0.5% = RM400.00

By the way, the premium for your windshield is calculated at 15% of the windscreen value.

If your car has been damaged by flood, here’s what you should and should not do :

1) Do not start the car as you don’t want to damage it even further. Remove the battery if you can and safe-keep all important documents.
2) Take a picture of your car with its number plate as evidence and indicate location, date and time.
3) Make a police report within 24 hours and keep a copy.
4) Call your insurance company and submit your claim request. They will ensure your car gets towed to their panel workshop.

The next time you renew your policy, ensure that this (the ‘special perils’ section) is included as well. It could save you money and give you something more priceless – peace of mind.