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Message: <blockquote data-quote="ozone" data-source="post: 296020" data-attributes="member: 71">Yes, if you want flood cover, you have to pay additional premium at 0.5% of the sum insured of your car ie RM 500 additional premium for a RM 100k car. Most companies are now offering nil excess for private cars with sum insured less than RM 300k.But this might change  soon as the motor insurance industry has gone to loss making in 2007. As at Dec 2007 for Malaysian motor insurance industry as a whole, for every RM 1 that the insurance company collects as premium, RM 1.15 in total  is paid out in terms of claims cost, commission ( standardised at 10%) and management expenses ( about 20% )This is as a result of the NAP where prices of cars went down and hence the premium has gone down. But cost or repairs ( spare parts and workshop labour ) has gone up.The situation for the first 6 months of 2008 is even worse and with the recent announcement in petrol prices, this does not help.However, Malaysians can rest easy as insurance companies cannot increase premiums due to the tariff imposed by BNM. Insurance companies is trying to lobby to the Central Bank to put up a proposal to the Cabinet but in my personal opinion, the cabinet is unlikely to approve in the near future.</blockquote>