Natural Disasters are Unpredictable: What are Special Perils?

Key Points

  1. What are special perils?
  2. How much do I need to pay for special perils coverage?
  3. How to file a special perils claim?
  4. How do I add special perils coverage?
  5. Is it necessary for me to have it?

You have heard people say that you should add special perils to your car insurance, right? But do you know what special perils are, why you need them, and why you must take them?

Let me explain. Special peril covers your vehicle against loss or damage caused by natural perils such as floods, storms, typhoons, volcanic eruptions, earthquakes, landslides, or sediment. In other words, natural disasters that you can’t control. With these add-ons, you can claim insurance for the damage caused by natural disasters. However, depending on what types of perils are covered by insurers. But, if you don’t have the special peril add-ons, you cannot do so.

According to Allianz General Insurance Company (Malaysia) Bhd deputy chief sales officer, Sazali Abdul Rahman, “Data from Allianz General revealed that only 11 per cent or approximately 123,000 out of 1.11 million customers chose special perils to cover as part of their private car comprehensive cover in 2022”.

But don’t worry, this article will explain everything about special perils coverage so that you can get the big picture and add this to your upcoming insurance policy.

What are special perils?

Special perils is the additional coverage to cover your vehicle against loss or damage caused by natural perils such as floods, storms, typhoons, volcanic eruptions, earthquakes, landslides, or sediment. Hence, in Malaysia, many insurance companies offer special perils coverage, such as MSIG, AIA, AIG, Allianz, Etiqa, and many more. It is recommended that those staying in the high-risk area take this add-on to protect their vehicle.

How much do I need to pay for special perils coverage?

Usually, you must add or pay an additional 0.5% of the sum insured for your vehicle. However, each insurance company may have a different rate, so you should be cautious. Some insurance companies that provide a special perils rate are listed below. For example, if your car’s sum insured is RM60,000 and you choose Allianz insurance special perils, you must pay an additional 0.25%. It brings the total cost of one year’s coverage to RM150.

Insurance companies Special perils rate (premium rate x car sum insured)
Allianz Malaysia Berhad 0.25%
Zurich Takaful 0.20%
RHB Insurance Berhad 0.25% (full cover) / 0.40% (limited cover)
Etiqa Takaful 0.50%
AXA Affin 0.23%
Berjaya Sompo 0.20%
Tune Protect 0.20%

How to file a special perils claim?

If you have the special perils add-on coverage in your policy, you can file a claim with your insurance company if something happens to your vehicle. Below is the process of filing a special perils claim step-by-step.

Step-by-step process

  1. When your car is involved in unwanted circumstances such as flooding, make sure not to start your car, wash, or even clean it. Because you need to show this as part of the evidence to your insurance company.
  2. Second, take as many pictures and videos as possible because you will need them for your claim.
  3. After that, give your insurance company a call right away. Do let them know about your situation.
  4. Below are some of the insurance companies’ hotline numbers.
  5. Once you inform your insurance company, they will arrange for your car to be transported to the insurance panel workshop for repair.
  6. Once your car is repaired, that sum will be covered by the insurance company.
Insurance companies Hotline number
Allianz Malaysia Berhad 1-800-22-5542
Zurich Takaful 1-300-88-6222
RHB Insurance Berhad 1-300-220-007
Etiqa Takaful 1-300-13-8888
AXA Affin 03-2170-82827
Berjaya Sompo 1-800-889-933 / 1 800-18-80337
Pacific & Orient Insurance 1-800-88-2121
Tune Protect 1 800-22-8863
Liberty Insurance 1-800-88-5005 / 1-300-888-990 / 03-2619-9000

How do I add special perils coverage?

You can easily add this special perils coverage whenever you renew your car insurance. Usually, before you proceed with the renewal, there will be a coverage section where you can add any car insurance add-ons before you proceed to payment.

To make your life much easier, you can renew your car insurance at PolicyStreet.

Is it necessary for me to have it?

To be safe, you should include special perils in your policy, depending on your location. For example, those who live in flood-prone areas, such as Shah Alam, Kuala Lumpur, Kelantan, Terengganu, Pahang, and others, are particularly vulnerable. If you have this add-on, you can expect compensation from your insurance company. This includes the cost of repairing your car if it is damaged by any natural perils, reducing your financial burden.


As evidenced by the recent floods in Shah Alam and Kuala Lumpur, we cannot predict that the area could be flooded. Many residents there lost their homes, especially their cars, which were completely damaged due to being submerged by water. Hence, it is recommended that you add special peril coverage when you buy or renew car insurance later. This will ensure your vehicle is protected from any natural disasters.

However, all decisions are in your hands, considering the use and location of your vehicle, your financial capacity, and the insurance company that offers it.

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