Thunderstorms, heavy rains and floods can put your car at serious risk. For instance, imagine that your car is submerged in floodwater. If you try to restore your submerged car, your car’s electronic engine control unit (ECU) can short out and easily cost you a lot of money.
Given that standard insurance does not cover damage to your vehicle due to natural disasters, you will have to pay for the damage out of your pocket. But is there a way to claim from your insurance? In order to answer that, let’s look at this car insurance add-on: special perils cover.
What is special perils cover?
Special perils cover is a car insurance add-on that covers your car against loss or damage caused by natural perils (natural disasters). Depending on the perils covered by insurers, special perils include floods, storms, typhoons, landslides or sediment.
This additional coverage will compensate you in the event of car loss or damage due to any of the natural perils.
Do you need special perils cover?
Whether you need a special perils cover may depend on the use and location of your car.
For instance, if you live in a low-lying and flood-prone area where large floods occur almost every year, you may want to consider this coverage. Say that the floodwater damages your car, and you will at least get compensation from your insurance, which can ease your financial burden.
How much is the claim payout for special perils cover?
Generally, the claim payout amount depends on the sum insured for your car and is subject to respective insurance policies. But this add-on protection is not only limited to claim payout. It also covers the repair cost of your car damaged by any of the natural perils.
How much do you have to pay for special perils coverage?
You will usually have to pay an additional 0.5% of the sum insured for your car to enjoy this coverage. Note that the additional premium varies across insurers. For your reference, we have put together the premiums for this add-on cover offered by a few selected insurers in Malaysia.
| Insurance provider | Special perils cover | Premium (premium rate x car’s sum insured) |
| Zurich Takaful | Flood, typhoon, hurricane, storm, tempest, volcanic eruption, earthquake, landslide, landslip, subsidence or sinking of the soil/earth or other convulsions of nature | 0.20% |
| Allianz Malaysia | Flood, typhoon, hurricane, storm, landslide, landslip or other convulsions of nature | 0.25% |
| RHB Insurance Berhad (full special perils cover) | Flash floods, storms, landslides, earthquakes, sinking soil and other unexpected occurrences | 0.25% |
| Etiqa Takaful | Floods, storms and tempests | 0.27% |
| RHB Insurance Berhad (limited special perils cover) | Flash floods, storms, landslides, earthquakes, sinking soil and other unexpected occurrences | 0.40% |
| Etiqa Takaful | Flood, typhoon, hurricane, storm, tempest, volcanic eruption, earthquake, landslide, landslip, subsidence or sinking of the soil/earth or other convulsions of nature | 0.50% |
Let’s take one of the insurers to calculate the additional premium. Say that you would like to get extensive special perils coverage from Etiqa Takaful car insurance. As the sum insured for your car is RM50,000, you will have to pay 0.5% of the amount to enjoy the coverage. Therefore, the amount you have to pay is RM250 for a one-year coverage.
How to get special perils cover?
You can easily add special perils cover or other additional covers to your comprehensive motor insurance when you renew your car insurance.
Just add any car insurance add-ons before you proceed to payment.
Protect your car from damages caused by special perils
We have shared the information about the special perils cover that will protect your car against loss and damage caused by natural disasters. Hence, in deciding whether you need this coverage, consider the use and location of your car, your financial capability, and the insurers that offer this coverage.
Would you like to add this additional coverage to your car insurance policy? Head over to Bjak to renew your car insurance online today.
Bjak is one of Malaysia’s biggest insurance comparison sites, with more than 10 insurance brands to choose from. Get your free insurance quote at Bjak today!
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