Low take-up rate for special perils coverage

The take-up rate for special risks protection from disasters among Malaysian homeowners is lower than in other countries.

Allianz General Insurance Company (Malaysia) Bhd deputy chief sales officer Sazali Abdul Rahman said Malaysia is geographically outside the ‘Pacific Ring of Fire’.

Sazali said data from Allianz General revealed that only 11 per cent or approximately 123,000 out of 1.11 million customers chose special perils to cover as part of their private car comprehensive cover in 2021.

However, following the floods last year, he said the company saw a take-up rate of 22 per cent or approximately 15,000 out of 68,000 customers (new and renewals) between January 1 to 17, 2022.

“Malaysia is affected by moderate environmental disasters but seldom affected by severe disasters like other countries.

“There are many types of insurance products in Malaysia, but homeowners still choose not to take out flood cover (home insurance) and special perils (protection from landslides, floods and other natural disasters),” he said

Meanwhile, Sazali said when insuring a home, a homeowner or tenant should consider an insurance cover that reflects the value of the house to avoid over or underinsure the house.