Waiting period of fourteen (14) days is only applicable for Flood Damage coverage (if Flood Damage add-on coverage is selected).
Waiting period is only applicable when the policy is first covered with Flood Damage add-on coverage and shall not be applicable in the subsequent policy period. However, if there is a break in continuity of the Flood Damage add-on coverage after the first year of coverage, the waiting period shall apply again.
The waiting period on Flood Damage coverage is illustrated in the three scenarios below:
- Scenario 1:
- Policy coverage period of 1st May 2023 to 30th April 2024 (refers to “1st year”). The policy is with Flood Damage add-on coverage selected, so the waiting period applies for 1st year.
- Policy is then renewed on 1st May 2024, coverage until 30th April 2025 (refers to “2nd year”). The renewed policy is attached with Flood Damage add-on coverage as well. Given that the coverage period with Flood Damage add-on is continuous, i.e. there is no gap in coverage between the 1st year and 2nd year policy, hence waiting period does not apply for 2nd year.
- Should there be any claim arising from flood happening between 1st May 2024 and 31st April 2025, AIA will be liable for the claim since the flood happens within the policy coverage period and waiting period does not apply.
- Scenario 2:
- Policy coverage period of 1st May 2023 to 30th April 2024 (refers to “1st year”). The policy is with Flood Damage add-on coverage selected, so the waiting period applies for 1st year.
- Policy is then renewed on 1st May 2024, coverage until 30th April 2025 (refers to “2nd year”). The renewed policy is not attached with Flood Damage add-on coverage. Policy is renewed next year on 1st May 2025, coverage until 30th April 2026 (refers to “3rd year”). The renewed policy is attached with Flood Damage add-on coverage again. Given that there is a break in continuity of the coverage period for Flood Damage add-on, i.e. there is no flood coverage in 2nd year, hence waiting period applies for 3rd year.
- Should there be any claim arising from flood happening between 1st May 2025 and 14th May 2025, AIA will NOT be liable for flood claim since the flood happens within the waiting period.
- Scenario 3:
- Policy coverage period of 1st May 2023 to 30th April 2024 (refers to “1st year”). The policy is with Flood Damage add-on coverage selected, so the waiting period applies for 1st year.
- Policy is then renewed on 2nd May 2024, coverage until 1st May 2025 (refers to 2nd year”). The renewed policy is attached with Flood Damage add-on coverage. Given that there is a break in continuity of the coverage period for Flood Damage add-on, i.e. there is a one-day gap between the 1st year and 2nd year policy, hence waiting period applies for 2nd year.
- Should there be any claim arising from flood happening between 2nd May 2024 and 15th May 2024, AIA will NOT be liable for flood claim since the flood happens within the waiting period.