KUALA LUMPUR (Jan 7): The General Insurance Association of Malaysia (PIAM) has set up a fund with a contribution of RM2.43 million to alleviate the hardship faced by car owners whose vehicles were inundated by floods across the country recently.

The CSR Flood Relief Fund is in the form of subsidies for mechanical clean-up cost (excluding repair) at any competent workshops provided by the general insurance industry, over and above existing commitments by insurers to expedite payment of flood claims settlement, the waiver of certain mandatory claims documentation, a simplified claims process and additional special relief measures that may be provided by an individual insurer.

The subsidy will be based on an actual cost incurred basis, and is capped at a maximum of RM100 per motorcycle and a maximum of RM500 per private/commercial vehicle.

In a statement on Friday (Jan 7), PIAM said the fund will be closed once the pledged amount of RM2.43 million is exhausted.

"The subsidy is given on a per vehicle basis to motorcycles, private vehicles including commercial vehicles irrespective of the types of motor policy, that is, comprehensive cover with or without special perils extension, third-party fire and theft, and third parties. The motor policy must be valid at the time of flooding, and in the event of lapsed motor policies, the vehicles must be at least last insured on or after June 1, 2021.

"A successful claim for the subsidy will not affect your no claim discount (NCD)," PIAM added.

The association said eligible policyholders can apply for the subsidy by submitting their applications online via the portal MyCSR-Flood.my effective Jan 15, 2022.

“The claim payout to eligible claimants, who fulfil all the CSR Fund eligibility criteria and requirements, will be credited directly to the bank accounts provided,” said PIAM.

Currently, the association has 25 member companies.