Special perils coverage for ease of mind

GLOBAL warming is leaving its mark with shifts in temperature and weather patterns. The Department of Statistics reported that the recent floods in late December 2021 and early January 2022 amassed an overall loss of RM6.1bil.

According to Malaysian weather experts, we may experience more rainfall brought about by the ongoing La Nina phenomenon compared with two decades ago, as Malaysian climate and weather has become more unpredictable.

Although the Malaysian Meteorological Department (MetMalaysia) has indicated that it’s impossible to predict weather patterns months ahead, it’s almost certain that Malaysia will go through four to six monsoon surges, which will happen between November and March.

That said, it is beneficial to protect yourself against any special perils, which are usually caused by natural disasters.

As one of the leading general insurance companies in Malaysia, Berjaya Sompo Insurance Berhad upped the ante on its special perils coverage for its SOMPO Home Content and SOMPO Motor.

SOMPO Home Content

Policyholders can use an insurance plan that covers household goods and personal effects against loss or damage by fire, lightning strikes, flood, theft, or accidents.

They can combine their current houseowner insurance with the SOMPO Home Content insurance as it not only covers the home building but also household content and personal effects that belong to the homeowner and family members.

Berjaya Sompo has also simplified the claim process for policyholders, which do not require to disclose the value of every item of the home contents or even show proof of receipts for the home contents. However, a police report is required if it is a criminal act.

No penalisation for underinsurance

For instance, if you bought a policy with a sum insured of RM10,000 and the total value of your home content is RM20,000, it means you are underinsured.

In the event of a claim with a partial loss of RM5,000:

> If underinsurance is applied, it will have an impact on the eligible claim amount. Your insurer pays RM10,000/RM20,000 = ½ ratio x RM5,000 = RM2,500. You will have to bear the remaining RM2,500 partial loss yourself.

> If no underinsurance is applied, it will have no impact on the eligible claim amount. Your insurer pays up to RM5,000, but subject to limit per item based on selected plan, excess (if any) and other terms and conditions.

What’s more, there are three affordable plans with sum insured for up to RM30,000 on your household goods and personal effects and premium from as low as RM89 a year which is equivalent to RM0.24 a day.

Policyholders are allowed to claim up to the limit per item depending on the plan. For example, under plan 1, if the value of the item is RM1,000, the maximum amount the policyholder can claim is RM750.

SOMPO Motor

SOMPO Motor is a Private Car Comprehensive Insurance policy which covers accidental or fire damage to your vehicle, theft of your vehicle and liability to other parties for injury or death as well as damage to other parties property.

Meanwhile, under its special perils option, SOMPO Motor provides policyholders a claim amount of RM10,000 or 20% of the sum insured, whichever is lower for any loss or damage to their vehicle caused by flood, typhoon, hurricane, storm, tempest, volcanic eruption, earthquake, landslide, landslip, subsidence or sinking of the soil or earth and other convulsions of nature.

The insurer aims to ensure policyholders’ motor vehicles are fully protected in the event of a flood or other perils where SOMPO Motor allows for top-up for the full convulsion of nature cover - an additional coverage at only RM2 for each RM1,000 sum insured.

Vehicles can be covered up to the sum insured specified in the policy schedule for loss or damage. Further with the inclusion of the top-up for full convulsion of nature cover the remaining sum insured amount will be covered.

For instance, if a policy sum insured is RM50,000, the SOMPO Motor policy will provide a claim amount of RM10,000 for any convulsions of nature at no additional premium.

However, if the policyholder opts to top up for full convulsion of nature cover at RM80 additional premium they are entitled to RM40,000 coverage convulsion of nature.

For more information, visit its website for the SOMPO Home Content and SOMPO Motor policy.   

Source: The Star Online

This content is provided by Berjaya Sompo Insurance Berhad

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