Are you a vehicle owner? If so, have you covered your vehicle with special perils coverage? You have taken the right action if you have purchased special perils cover.
Looking at the unpredictable weather, no one is spared from unexpected incidents. For instance, a tree may crash on a car at a traffic light, a landslide can happen on the road, or a flood can inundate a vehicle.
Therefore, it is crucial that you prepare yourself by getting special perils cover for your vehicle to avoid loss in a natural disaster.
Low take-up of special perils cover among vehicle owners
Sadly, many vehicle owners are not prepared for unexpected events like natural disasters. When renewing their insurance, many do not add additional special perils cover to their comprehensive insurance.
According to a recent report by Berita Harian, Allianz General Insurance Company (Malaysia) Berhad revealed that only 11% or approximately 123,000 out of 1.11 million of its customers purchased special perils coverage as part of their private car comprehensive cover in 2021.
Not having special perils coverage can be detrimental to vehicle owners. If their vehicles suffer damages due to natural disasters, they cannot make an insurance claim, and therefore, must use their own pocket money to repair the damages.
Awareness of getting special perils cover is expected to rise
Despite the low take-up of special perils cover among vehicle owners, Allianz General Chief Executive Officer Sean Wang said that the company saw a take-up rate of 22% or approximately 15,000 out of 68,000 customers for new policies and renewals between January 1 to 17, 2022. The increase was in the wake of the flood disaster last year that hit several states in Malaysia.
He said the car owners were aware that the recent floods revealed the country’s shortcomings in disaster response and urban planning. The tragedy also raised questions regarding insurance coverage and whether the people were underinsured.
“In Malaysia, we have options when it comes to insurance products and how we purchase insurance. So, it is not a question of being underinsured.
“However, we are guilty of choosing to forgo flood cover (home insurance), windscreen or even special perils cover (protection against landslide, flood, and other convulsions of nature) when buying car insurance, all in favour of a cheaper policy.
“This is what leaves Malaysians underinsured,” said Sean Wang.
Key points regarding special perils cover
Here is some information regarding special perils cover that you should know:
- Coverage against natural disasters is referred to as special perils cover in insurance.
- This protection covers vehicle damage or loss due to natural disasters such as floods, fallen trees and other convulsions of nature.
- This additional coverage will compensate you in the event of a car loss or damage due to natural perils.
- This add-on protection covers the claim payout and repair cost of your car damaged by natural perils.
- You will usually have to pay an additional 0.5% of the sum insured for your car. However, the additional premium varies across insurers. You can find the premiums for special perils coverage offered by a few selected insurers in our past article.
- You can only purchase special perils cover if you buy comprehensive insurance.
- After you make an insurance claim under special perils cover, your No Claim Discount (NCD) will return to 0%. However, getting this cover will benefit you more as without it, you cannot make an insurance claim for vehicle damage due to natural disasters.
Get the best insurance coverage for your vehicle
It is advisable that you get special perils coverage when renewing your insurance with a comprehensive plan.
Unexpected natural disasters can happen without warning. Therefore, you should secure sufficient protection for your vehicle to avoid loss and regret in unfortunate events.
Simply use Bjak to get the best comprehensive insurance plan. You can choose from 15 insurance providers. Renew your car insurance online if yours is expiring, and add special perils cover to your policy for increased protection. Start by getting your free car insurance quotes today.
