Only 13 Pct Of ICE Vehicles Have Flood Coverage Versus 50 Pct Of EVs
KUALA LUMPUR, Nov 6 (Bernama) -- Only 13 per cent of internal combustion engine (ICE) vehicles have flood insurance coverage compared with 50 per cent of electric vehicles (EVs), according to Insurance Services Malaysia (ISM) data from 2022 to the second quarter of 2026.
The data also showed that the average flood-related insurance claim for ICE vehicles stood at RM34,000, about four times higher than the RM8,400 recorded for EVs.
General Insurance Association of Malaysia (PIAM) chief executive officer Chua Kim Soon said the findings highlighted differences in flood insurance coverage and claims between conventional vehicles and electric vehicles.
He said EVs were less prone to flood damage due to features such as protected electrical systems and automatic high-voltage isolation, which helped reduce insurance claims.
“The higher adoption of flood protection is because EV drivers are mostly urban drivers. I think in the cities, people are more aware of the risk of flood, and that's why they they take up such a cover,” he said during a presentation at the PIAM Monsoon Readiness Media Roundtable here today.
Meanwhile, Chua said flood-related losses in Malaysia amounted to nearly RM1 billion in 2024 but only a small proportion of the losses were covered by insurance.
According to him, an inadequate insurance protection could expose vehicle owners to significant financial burdens, particularly when vehicles are damaged or rendered unusable by major flood incidents.
He also stated that average flood-related claims increased to RM227,000 during major flood events, compared with RM73,000 during periods without major catastrophes.
He urged motorists to review their insurance policies, as comprehensive motor insurance does not automatically provide flood protection, which is available as an optional extension subject to additional premiums.
-- BERNAMA