Insurance industry facing up to RM3bil in flood payouts

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PETALING JAYA: The common insurance coverage industry is doubtlessly facing flood-related claims payouts of between RM2bil and RM3bil from the unusually extreme floods reported nationwide.

The General Insurance Association of Malaysia (PIAM) stated the estimate included precise and potential private traces and industrial dangers claims straight ensuing from the current flash floods in addition to the continued monsoon season in the weeks and months forward.

It additionally stated in addition to the estimated whole claims payout, the industry can be contributing RM2.43mil to a newly-established “Flood Relief Fund @ Dec 2021”, a company social duty (CSR) initiative to assist the motoring neighborhood affected by floods.

It added that the overall insurance coverage industry’s initiative can be over and above current commitments by insurers for the reason that flood catastrophe occurred.

“The initiative was carried out to expedite claims settlement, provide additional special relief measures, as well as further ad hoc ex-gratia assistance, as determined by individual general insurers.

“This CSR assistance will initially be in the form of a subsidy towards clean-up at workshops for vehicles affected by floods (not repairs at this stage), capped at a one-off per vehicle subsidy of RM500 for cars or commercial vehicles and RM100 for motorbikes,” PIAM stated in an announcement yesterday.

It added that claimants would wish to produce proof of flood harm to their automobiles and proof of earlier insurance coverage cowl.

“The stated car should be both at the moment insured (any sort of motor coverage with or with out flood cowl is eligible) or a car that was final insured on June 1 this 12 months.

“At this stage, the fund can be closed as soon as the pledged quantity of RM2.43mil has been exhausted.

“In live performance with its CSR targets, PIAM welcomes contributions from different events or industries in the direction of this flood aid fund which can lengthen the longevity of the fund and help extra affected motorists.



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