Heavy rainfall is predicted at the end of 2021 and yet just over half of Malaysian vehicle owners have flood protection.
A recent study conducted by Zurich Malaysia found that more than half of Malaysian motorists have not opted for flood damage coverage. In a country with all-year round rain and severe monsoon seasons, this is a cause for great concern.
Zurich Malaysia’s Impact of Pandemic on Protection survey found that as many as 59% of motorists are not adequately protected against flood damage wither because they are unaware or because they think they will not be affected. Even fewer Malaysians (34%) are covered for damage caused during storms, and 29% are covered for landslide damage.
Given that the Malaysian Meteorological Department predicts that between 450mm and 1000mm of rainfall is anticipated between these last two months of 2021, these low numbers are definitely a cause for concern. This amount of rainfall is much higher than average and we’re already seeing lots of incidents of flooding and landslides already.
The study says that only about 47% of vehicle owners are sure of their coverage content, evidence that motor insurance is something motorists only purchase because they have to.
Here’s the press release with more information.
PRESS RELEASE
Zurich Malaysia found that 59% of Malaysian motorists still do not have adequate protection against flood damage, as one of the findings under its Impact of Pandemic on Protection survey. Drivers may be caught unaware if they are not prepared and think they are not affected.
This is a cause for concern as Malaysia regularly experiences monsoon seasons, such as the current Northeast Monsoon season from November until March next year. The Malaysian Meteorological Department has warned certain states are expected to have higher than average rainfall of between 450 mm and 1,000 mm in November and December.
In addition to flooding, landslides and falling trees are potential perils that Malaysian motorists are not prepared for. Only one in three active motorists (34%) reported having coverage for storms including falling trees, and only
29% are covered for landslides.
The survey also found that in terms of renewing their motor vehicle insurance and takaful, Malaysians still engage agents to do so. Out of 990 respondents who own a motor vehicle, 38% chose to go through an agent
despite the availability of online portals.
However, online portals were the most preferred method with 43% of the motorists utilising them. This shows the importance of digital tools in today’s market. Meanwhile, 16% of Malaysians opted to visit a physical kiosk or post
office themselves to renew their insurance personally.
In terms of motor insurance and takaful coverage, a noteworthy trend is that most Malaysians prefer plans that cover all drivers (36%) instead of just named drivers in the policy (34%). This is particularly useful if the car owner
is in the vehicle but not behind the wheel, such as taking turns on a long interstate journey.
Some Malaysians may only sign up for protection solely to have a valid motor insurance or takaful as mandated to be able to renew their road tax and drive. This is evidenced by 47% of vehicle owner respondents reporting they are unsure of their coverage content.
Conducted in late September 2021, the survey engaged 1,201 Malaysians from all states, of which 990 are vehicle owners. It is an effort by Zurich Malaysia to understand the local consumer landscape and design protection plans that best suit customers’ lifestyle needs and create a brighter future together.
