Abstract:

Malaysia’s National Security Council (NSC) declared that the recent floods in Kelantan were the worst recorded in the history of the state. River levels in December 2014 exceeded those of recent record floods of 2004 and 1967.  Most of the developing countries typically depend on government and international aid to cope with major floods. However in developed countries, insurers and government assistance play fundamental roles in ensuring economic and social resilience in the aftermath of catastrophes. Thus, it is a high time for Malaysian government to be involved directly in developing national flood insurance through their relevant agencies. Flood is the main cause of reported frequent natural disaster in Malaysia. Floods gave high impact to country and nation’s economic which cost loss of lives, enormous infrastructure collapse, personal properties damaged and other social consequences (Chan, 1995). Flood insurance, is generally available in a few countries worldwide, from being part of standard fire insurance coverage or only available through special-purpose government schemes.