WITH rainy days ahead, it would be wise for motorists, especially in high-risk areas, to insure their vehicles for flood cover. A vehicle submerged in a flooded basement or road is as good as a total loss.
This additional premium is pegged at half a per cent of the insured value or RM500 for RM100,000 cover.
During the year-end merry-making, vandals may damage vehicles parked by the road. Cover for such riot and civil commotion would require an additional RM300 premium for RM100,000 cover.
Vehicle owners and drivers must be aware that most motor insurance policies do not cover all eventualities. Even when additional cover is taken, vehicle owners still have to exercise personal responsibility.
Failure to do so can lead to financial ruin. Apart from owners losing their vehicles, drivers are personally liable when sued for millions of ringgit for causing injury or death.
Owners should always exercise caution before letting others, including friends and car jockeys, drive their vehicles as they may go missing. The insurance company may not entertain claims for such losses as the vehicles were voluntarily handed over and not stolen.
Anyone leaving the car’s engine running to dash into a store only to find that someone had driven it away will have a problem claiming for the loss as such negligence is not covered.
Likewise, the insurance company will not pay when the driver drives under the influence of drugs or alcohol.
Injured passengers too can sue the driver for negligence. As such, it is prudent for business persons and companies to insure their cars for “legal liability to passengers” if their passengers sometimes include business associates.
The premium for such cover is 25% of the third party premium, which is RM22.50 a year for a 2litre car.
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