Each year, the heavy rainfall between November and February brings about major flooding. In 2021, the Malaysia government declared the December flood a "once in a century" disaster compared to the 1971 Kuala Lumpur Floods, which affected 180,000 people and killed 32. Flooding remains the country’s most frequent and severe natural disaster.Despite the devastating impacts of annual floods on people and property, many Malaysians are underinsured against damage from floods. With around 5 million Malaysians living and working in flood-prone areas, this is a major challenge for the insurance industry. This article unpacks how you can ensure you are adequately covered in the event of flood damage.Flood Coverage in MalaysiaFlood Coverage is optional under standard insurance policies for homes and motor vehicles. Ahead of the monsoon conditions, Persatuan Insurans Am Malaysia (PIAM) and Malaysia Takaful Association (MTA) have strongly encouraged individuals and companies to take time to review the adequacy of their coverage.There are two coverage options for flood damage in Malaysia which are outlined below:
As shown in the table below, these comparison rates are for the total insured sum, but certain insurance providers allow you to determine the sum insured (lower if you want), which comes with different rates. Certain special perils coverage options are limited in that some only cover floods, while others have expanded coverage to include other acts of God (such as damage from volcanoes, landslides, Fallen trees, and lightning strikes, etc.)
While risk transfer through insurance is important, it is also essential to build resilience through activities such as town planning and flood mitigation projects as being undertaken by The Department of Irrigation and Drainage.With you all the wayFor a review of your coverage adequacy or to find out more about protection against floods and other natural disasters, please reach out to our MP Honan corporate team.Chermaine Yapchermaine.firstname.lastname@example.orgUmmi Kalsum Abdullahummikalsum@mpinsb.com.my
Protecting cash flow, guarding against late and/or non-payments from customers, and securing your company’s own creditworthiness is critical to business sustainability. This article looks at two key ways you can limit your liquidity risks: credit reports and trade credit insurance.
Honan Asia Pte Ltd (201015241N), Honan Insurance Group (Asia) Pte Ltd (199303033N), Honan Benefits Pte Ltd (199507177R), Honan Group (Malaysia) Sdn Bhd (201801013064) and all other entities is a composite insurance broker acting as agent for insureds and intending insureds. Honan is not an insurer. The information on this website has been prepared without taking into account your objectives, financial situation or needs. Any advice provided on this website is general advice only. Before making a decision to purchase an insurance policy, please read the relevant Product Disclosure Statement and/or Terms of Business Agreement to make sure the policy is right for you. Insurance cover is subject to policy terms and conditions including policy limits and exclusions.
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