Is your car properly insured? Chapter 2 : Special Peril
In Malaysia, motor insurance is a necessity and requirement by law when you purchase a new vehicle as a way to protect you as a car owner. Most car insurance offers a wide range of additional coverage such as special peril, windscreen, additional driver, tyres and rim repair and so on. In this article, we will be discussing the special peril covers for your vehicle when unexpected things happen. What does it mean by special peril cover? Special Peril coverage refers to the protection of your vehicle against unforeseen natural disasters such as flood, storms, landslides, earthquakes, sediments and more depending on the special peril cover provided by various insurers. This additional coverage will compensate you in the event of loss caused by any of the natural disasters.
Do I need a special peril cover?
You can choose whether or not to add this additional coverage based on your driving habits and lifestyle as a car owner. If you reside in a region where flooding is a common occurrence, it is suggested that you obtain supplemental coverage for unique hazards, as unforeseen natural disasters can cost you hundreds or thousands of dollars in damages.
How much do I need to pay for a special perils add-on?
Typically, the additional premium you need to pay for the special peril coverage depends on the sum insured of your vehicle. The calculation of the premium usually is an additional of 0.15% to 0.50% of the sum insured of your car. However, do note that premiums vary from one insurance company to another. Below is the table of the premium rate from various insurance companies.
| INSURANCE PROVIDERS | SPECIAL PERILS RATE (%) |
| MPI | 0.15% |
| AIG | 0.30% |
| ALLIANZ | 0.20% |
| ETIQA | 0.50% |
| AXA | 0.20% |
| KURNIA | 0.23% |
| MSIG | 0.20% |
*May differ according to promotion and changes.
Case Scenario
If your car sum insured is RM60,000 and you choose AIG insurance special perils, you must pay an additional 0.30% to enjoy the coverage, bringing the total cost of one year’s coverage to RM180, subject to an additional 6% SST.
How to file a special perils claim?
Here the process of making a claim with your insurer if something happened to your vehicle when you are protected under the special perils coverage.
1. When something happens to your car, make sure not to start, clean or wash your car, as you need to show this as a part of evidence to your insurance company.
2. Take as many photos and videos as you can to be provided as proof for your claim.
3. Call your insurance company's hotline right away and tell them about your current situation.
4. Transport your vehicle to the nearest panel workshop by your insurer.
5. Once the repair is done, that sum will be covered by your insurer.
How do I add-on the special peril coverage?
You could easily add-on this special perils coverage whenever you renew your car insurance. Simply add-on the special perils option before you proceed to payment and you are now fully protected. To make your life easier, you could get in touch with us now at 012-473 3001 or 016-875 6001 for free quotations! It’s fast and easy.