59% of Malaysian Motorists Still Not Covered for Flood Damage
Zurich Malaysias survey finds that Malaysians are not prepared for the monsoon season
Kuala Lumpur, 23 November 2021: Zurich Malaysia found that 59% of Malaysian motorists still do not have adequate protection against flood damage, as one of the findings under its Impact of Pandemic on Protection survey. Drivers may be caught unaware if they are not prepared and think they are not affected.
This is a cause for concern as Malaysia regularly experiences monsoon seasons, such as the current Northeast Monsoon season from November until March next year. The Malaysian Meteorological Department has warned certain states are expected to have higher than average rainfall of between 450 mm and 1,000 mm in November and December.
In addition to flooding, landslides and falling trees are potential perils that Malaysian motorists are not prepared for. Only one in three active motorists (34%) reported having coverage for storms including falling trees, and only 29% are covered for landslides.
The survey also found that in terms of renewing their motor vehicle insurance and Takaful, Malaysians still engage agents to do so. Out of 990 respondents who own a motor vehicle, 38% chose to go through an agent despite the availability of online portals.
However, online portals were the most preferred method with 43% of the motorists utilising them. This shows the importance of digital tools in todays market. Meanwhile, 16% of Malaysians opted to visit a physical kiosk or post office themselves to renew their insurance personally.
In terms of motor insurance and takaful coverage, a noteworthy trend is that most Malaysians prefer plans that cover all drivers (36%) instead of just named drivers in the policy (34%). This is particularly useful if the car owner is in the vehicle but not behind the wheel, such as taking turns on a long interstate journey.
Some Malaysians may only sign up for protection solely to have a valid motor insurance or Takaful as mandated to be able to renew their road tax and drive. This is evidenced by 47% of vehicle owner respondents reporting they are unsure of their coverage content.
Conducted in late September 2021, the survey engaged 1,201 Malaysians from all states, of which 990 are vehicle owners. It is an effort by Zurich Malaysia to understand the local consumer landscape and design protection plans that best suit customers lifestyle needs and create a brighter future together.