Why Special Perils Motor Insurance Is More Important Than You Think

You may have heard about Special Perils Motor Insurance when you first purchased your vehicle or during your recent vehicle insurance renewal. But beyond the name, do you know its purpose and whether it is worth the additional investment? Let's delve into what this coverage entails and assess if it is a valuable option for safeguarding your vehicle against unexpected events.

What is Special Perils Motor Insurance?

Special Perils Motor Insurance is an add-on coverage to your standard motor insurance policy, offering protection against a range of natural disasters and unforeseen events typically not covered by standard insurance. In Malaysia, this includes natural disasters such as floods, storms, landslides, and other calamities that can cause significant damage to your vehicle. Opting for special perils coverage protects your vehicle against these specific risks, providing peace of mind in unpredictable situations.

What are the differences between Standard Motor Insurance and Special Perils Motor Insurance?

Standard Motor Insurance generally covers damages resulting from accidents, theft, and third-party liabilities. However, it does not cover damages caused by convulsions of nature. Special Perils Motor Insurance, on the other hand, extends your coverage to include natural disasters like floods, storms, and landslides.

Do I need Special Perils Motor Insurance?

Whether you need Special Perils Motor Insurance depends on various factors, such as your geographical location, climate, and the frequency of natural disasters in your area. If you live in a region prone to floods and landslides, having full special perils coverage is highly advisable. By assessing the risks specific to your location and lifestyle, you can determine if this additional coverage is a worthwhile investment to protect your vehicle.

The Case of Falling Trees and Floods in Malaysia

With Malaysia being prone to seasonal rains, unforeseen tragedies such as falling trees often strike when we least expect them Source

The incident on Jalan Sultan Ismail, Kuala Lumpur, where a falling tree claimed one life, injured another and damaged 17 vehicles, underscores the unpredictable nature of our urban environment. This highlights the importance of good insurance coverage to protect yourself from major financial losses.

A reminder that even the newest cars can't outrun the unpredictability of flash floods. Source

A new Proton X50 owner's joy turned to despair when a flash flood in Puchong claimed the vehicle just an hour after delivery. Despite the unfortunate incident, the customer’s foresight in purchasing special perils insurance offered some relief. These incident underscores the importance of special perils coverage against unforeseen natural disasters.

Is Special Perils Motor Insurance expensive?

Special Perils Motor Insurance is relatively affordable, typically ranging from 0.2% to 0.5% of the vehicle's sum insured. Depending on the risk factors, this add-on cost can be minimal compared to the potential expenses of repairing significant damages caused by a natural disaster. It is always a good idea to compare quotes from different insurers to find a policy that fits your budget and provides adequate coverage.

How do I make a claim under Special Perils Motor Insurance?

Generally, the claims process for Special Perils Motor Insurance is similar to that of standard car insurance. Similarly, making a claim under special perils coverage will also impact your No-Claim Discount (NCD). It is crucial to contact your insurance provider as soon as possible after the event and follow their instructions for filing a claim. This will help ensure that the process is handled efficiently and in accordance with your policy terms.

How do I purchase Special Perils Motor Insurance?

At Pos Malaysia, you can explore a range of our Motor Insurance partners offering Special Perils coverage at competitive rates. Select an insurance plan that fits your lifestyle and conveniently purchase/renew your vehicle insurance with us online 24/7:
https://insurance.pos.com.my/ or at any Pos Malaysia outlet nationwide:
https://www.pos.com.my/pos-outlet-finder