KUALA LUMPUR (Dec 28): The general insurance industry is potentially facing upwards of RM2 billion to RM3 billion in total flood-related claims exposure, due to the unusually severe floods widely reported in various parts of the country.

In a statement on Tuesday (Dec 28), Persatuan Insurans Am Malaysia (PIAM) said these estimates include actual and potential personal lines and commercial risks claims directly resulting from the recent flash floods and the upcoming monsoon season in the weeks and months ahead.

PIAM said in addition to above estimated total claims payout, the general insurance industry is rising to the occasion and will be lending a helping hand by donating and contributing RM2.43 million to a newly established Flood Relief Fund @ Dec 2021, as a corporate social responsibility (CSR) initiative to support the adversely affected motoring community during these difficult times.

It said this general insurance industry’s initiative will be over and above existing commitments by insurers.

PIAM said this CSR assistance will initially be in the form of a subsidy towards a clean-up at workshops for vehicles directly affected by the floods (note: not repairs at this stage), capped at a one-off per vehicle subsidy of RM500 for cars/commercial vehicles and RM100 for motorbikes.

Claimants will need to produce requisite evidence of flood damage to their vehicles and proof of previous insurance cover.

The said vehicle must be either currently insured (any type of motor policy with or without flood cover is eligible) or a vehicle that was last insured on June 1, 2021.