Most Malaysians who drive themselves to Hat Yai or other areas in southern Thailand report that before entering Thailand, they only purchase the minimum required 'Compulsory Insurance' (CI), but this type of insurance does not cover losses caused by disasters such as major floods. In the event of a recent severe flood in Hat Yai, car owners must bear the huge cost of repairs themselves.
Many people who drive into Thailand purchase insurance priced as low as RM16, 'compulsory insurance', which applies to vehicles with up to 7 seats for a period of 9 days. If an accident occurs in Thailand, it only covers very limited medical expenses.
According to the 'Malaysia Utusan Malaysia' report, for those who paid extra for the optional insurance (VI) at about RM80, the insurance only covers third-party damages occurring in Thailand.
This means that neither of these two types of insurance provides any coverage for damages caused by disasters such as the recent major flood in Hat Yai.
A 30-year-old man who only gave his name as Shahril pointed out that he is one of the victims who must bear significant losses, as his car was almost submerged up to its roof.
“I only purchased the basic CI when I went to Hat Yai on November 21. My Malaysian car insurance originally did have additional disaster coverage, but I did not renew the Extension 101 Insurance (E101 Insurance) offered by my Malaysian insurer because I had been to the area many times and never expected such a severe disaster this time.”
Shahril is one of approximately 4,000 Malaysians who were stranded in Hat Yai for nearly a week, during which the city was submerged by up to 2 meters of water.
He hopes that the maintenance cost for his car will not be too high, as he managed to disconnect the battery before the vehicle was completely submerged.
“I heard that if you manage to disconnect the battery in time, the damage may not be too serious and only necessary servicing will be required. At the moment, my car is still in Hat Yai, waiting to be towed back to Malaysia.”