Car accidents involving trees due to storms, heavy rain leading to flash floods, and other natural disasters are common occurrences in Malaysia. These unforeseen natural disasters not only result in property damage but also incur financial losses to cover the repair costs.
Is It Eligible to Claim Insurance If There is Falling Tree on Car or Submerged in a Flood?
In principle, a car that is damaged by being submerged in a flood or falling tree on car may qualify for an insurance claim. However, it depends on specific circumstances and conditions.
For example, if the damage to your car is caused by a fallen tree, insurance companies or takaful operators typically take into account the following factors:
1. Cause of the Falling Tree on Car
Insurance companies will verify the incident involving the fallen tree. If the car being hit by a fallen tree is due to roadwork or landscaping carried out by the municipal authorities, you can directly make a claim to the relevant council or department without involving your insurance or takaful claim.
However, if the incident of the car being hit by a fallen tree occurs due to natural disasters such as storms, landslides, heavy rain, and others, insurance companies usually refer to meteorological reports to confirm the occurrence. Insurance claims will be considered based on the type of car coverage you have.
2. Special Perils Protection
In general, basic insurance coverage (or comprehensive insurance) alone may not be sufficient to protect your car if the damage is caused by a natural disaster such as falling tree on car. Insurance companies typically take into account the coverage on your car – both the basic coverage and any additional add-on protections you have.
This means that if your car is not covered by specific additional coverage for natural disasters, you may not be eligible to make this claim. In other words, a claim can only be made if you have obtained the Special Perils add-on coverage for your car.
What is Special Perils?
It refers to additional coverage in the event of damage to your car caused by storms, floods, earthquakes, landslides, and other natural disasters. Typically, the coverage offered may vary depending on your chosen insurance company.
How Much Premium Needs to be Paid for This Additional Coverage?
The premium rate for this additional coverage is typically around 0.25 percent of the insured amount (sum insured). However, this premium rate may vary depending on your insurance company.
For example, if the sum insured for your car is RM50,000, you would only need to pay RM125 (RM50,000 x 0.25% = RM125) for special perils coverage for one year.
Is It Worth Taking Special Perils Coverage?
Generally, the cost of obtaining this additional coverage is not excessively high. In fact, when compared to the expenses that would be incurred for repairing if there is falling tree on car, it is certainly more worthwhile than the potential costs of car repairs that could amount to thousands of ringgit.
Special Perils Coverage Can Safeguard Your Finances
In general, you can make an insurance claim to cover the costs of repairing a car that has been submerged in a flood, falling tree on car, or affected by other natural disasters. However, this is subject to having included special perils (natural disaster) coverage as an additional protection in your comprehensive car insurance policy.
This insurance claim needs to be made under the own damage section. However, it may have an impact on your car’s No Claims Discount (NCD) rate. This means that your car’s NCD will reset to zero, and the premium price for your car insurance is likely to be higher in the following year.
Insurance coverage plays a crucial role in helping alleviate your financial burden. Therefore, it is recommended to obtain comprehensive car insurance coverage and add special perils coverage for optimal car protection.
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