Thousands of flood victims lodge insurance claims

So far some RM8.3 million has been paid out to victims, the General Insurance Association of Malaysia (PIAM) said.

Its chairman, Chua Seck Guan said, the industry is well-positioned to pay out all claims arising from the disaster and is committed to providing coverage for individuals and businesses that require assistance.

Business owners were also given an exception interim payment of 25 percent for them to be able to kick start their business again.

Chua said the total gross written premiums (GWP) of the general insurance industry is expected to grow by between 5.5 percent and 6 percent this year amid the global headwinds fuelled by lower crude oil prices and the weaker ringgit.

Last year, the industry grew at a steady rate with gross written premiums increasing by 5.9 percent to RM17.09 billion as compared to RM16.15 billion in 2013.

The Association attributed the industry’s resilient performance to increase domestic demand and a greater awareness of insurance risks and benefits among consumers and the business community.

Meanwhile, PIAM’s Chief Executive Officer, Mark Lim said the motor sector continues to bear the heavy burden of increased claims cost.

“During 2014, the industry paid out RM5.04 billion in motor insurance claims. This represents a staggering RM13.8 million paid out daily as compensation for bodily injuries and property damages caused by road accidents as well as vehicle theft,” he said.

He also pointed that motor claims increased by 5.4 percent from 2013 with the rising trend showing no sign of abating. As such, PIAM is committed to focus on inculcating road safety to minimize fatalities on the roads.

At the same time, the industry is expected to implement a fraud intelligence system to combat the high incidence of fraudulent and inflated claims in the market.