Unaffordable Insurance will deter drivers?

[Apollo]

Insurer ditches motorist Her coverage expires this month;

another firm quotes premium of $6k

By Christopher Tan, Senior Correspondent

 

 

HOUSEWIFE Tan Poo Geok, 50, who has insured her car with AIG since 2004, was told two weeks ago in a letter from the insurer that it no longer wanted her business, citing 'claims experience'.

 

She had filed claims amounting to over $10,000 for two accidents - one last December and another in June this year. With insurance on her Mitsubishi Lancer expiring at the end of this month, she has been looking around for another insurer.

 

One firm quoted her a yearly premium of $6,000 - four times what she has been paying a year since 2004. She said: 'I feel quite helpless. I think I might give up driving and pass the car to my son.'

 

She is not alone in this boat.

 

The Straits Times understands that AIG, one of the biggest motor insurers here, could refuse to renew policies of motorists who have had two or more 'at-fault' accidents within three years.

 

Several other insurers also apply the 'two strikes and you're out' rule.

 

A senior executive of a Japanese insurer said: 'If you are such an accident-prone driver, perhaps it is best for everyone that you do not drive.'

General Insurance Association (GIA) president Derek Teo noted that motor insurers generally decline to provide coverage for a policyholder who gets into two or more 'at-fault' claims during the policy term or within two years. 'However, the final decision not to invite renewal may differ from insurer to insurer, depending on the circumstances of the claims filed and commercial considerations.'

 

A spokesman for NTUC Income, another major motor insurer, said it 'reviews every motor policy with claims in the past one year on case-by-case basis'. 'We may choose not to invite renewals for policies with high numbers of claims, drink driving, fraudulent claims and uncooperative policyholders,' he said.

 

Madam Tan said she could not find anything in her contract stating that she could not make more than a certain number of claims within a specified period. There is, however a clause that says the insurer reserves the right not to renew the policy. She said: 'I feel it's quite unfair. Accidents are random and definitely not planned. How can an insurer accept business when times are good and abandon the client when accidents occur?'

 

The Consumers Association of Singapore (Case) said insurers should find a better way of handling customers. Case executive director Seah Seng Choon said it was better to encourage 'at-fault' motorists to undergo a safety orientation course conducted by an independent party as a condition to continuing with the policy.

 

'I believe this is a win-win solution - the insurer gets to keep its clients and motorists learn to be better drivers. I urge insurers to be more proactive and show corporate social responsibility in helping to keep our roads safe instead of pushing the problem to another insurer,' said Mr Seah.

 

The GIA said it does not compile the number of motorists who are declined coverage each year, but reckoned the cohort to be 'relatively small', put against the total vehicle population of about 880,000.

 

[email protected]

 

 

http://www.straitstimes.com/Breaking%2BNew...ory_285380.html

Edited October 3, 2008 by Apollo

[Law_ong]

i support

[Kallangrally]

Madam said: 'I feel it's quite unfair. Accidents are random and definitely not planned. How can an insurer accept business when times are good and abandon the client when accidents occur?'

 

this sentence beri funny....if the client is a serial kuku driver, then insurer going to "run road"...next time maybe got professional job such as "accidentor" keep on accidenting and claim insurance (open ownself workshop to do the business)

[Gearoil]

Why are you not posting topics on Lite and Ezy anymore,ar?

 

Anyway...I fully support what this insurance co. is doing...as a matter of fact, her premium should be $10K to $20K per yr!!

 

Hope all insurance co. upon receiving her request to cover herself....take full note of this kind of case!...slap her with $20K /yr premium!

 

So she can slap herself again and again to wake-up her farking idea about ever driving on the roads!

 

Keep such woman pest off the road....save other road users a HOLE LOT of trouble!! ...

[Application9999]

All these blood suckers want ''sure win'' business is it? The best all no claim then they can make hell lots of money...The most fair way is to scrap all these insurance coverage for cars....if got into accident...u are fully responsible to pay for the repair..so no one complain...

[Fcw75]

A senior executive of a Japanese insurer said: 'If you are such an accident-prone driver, perhaps it is best for everyone that you do not drive.'

 

This sentence says it all.

 

Two accidents in half a year, claimed over $10K. She's a road hazard to other users.

Edited October 3, 2008 by Fcw75

[Tkseah]

Rather then outright refuse to offer her a renewal, AIG should just offer her renewal at $10k.. see whether she wanna take up or not..

[Cyberet]

so its either, "i don't think i want to insure you" or, pay "$6k" if you want me to insure u as u r "high risk"...

 

anyway if insurance don't do this.. its not fair to safe drivers who don't claim for 5 yrs, then later premium raise..

 

penalize the unsafe, reward the safe

 

u don't expect them to run charity business right? then no bailout package will save any insurance company

[Gearoil]

AIG got offer her what!...$6K/ yr and she already wants to turn in her licence liao!

 

You say $10k ar? Like this, she'll say she volunteer to take taxi full time liao!!

[Tkseah]

no lah.. 6k is offered by another firm.. AIG totally no wan her.. at least if AIG offered her 10k wouldn't as much bad press..

Edited October 3, 2008 by Tkseah

[Speddevil]

gotta improve her driving skills

[Acemundo]

haha what is the unfairness she talking about? if AIG accepts her, the rest of good drivers insured with AIG ends up sharing her high cost of accidents lor. is that fair to the good drivers then?