Motor Insurance

[Ghostrider]

Just thinking...

 

Since all the methods that were employed by insurance company has failed. (Since premium still on the way up every year)...would they consider the following suggestion.

 

Motorist who are accident prone will not have the onus to be more careful cos the actual lost is shared among all the policy holders. Its like you litter in your HDB block, everyone in your block is punished. My suggestion is that...

 

1) Punish the accident prone drivers with heavy premium and excess. NCD will not be given for a period of time. Pinch them where it hurts the most in the pocket. (Accident prone judged by XX no of years claim ZZZ no of times)

 

2) Appoint a group to settle non injuries claims. (like a div of the traffic police). Everytime the insurance company makes use of them, a certain fee has to be paid to them. (cheaper than hiring lawyers and going to court) - To speed up the claim process.

 

What I think factors that are driving insurance premium up is because...

 

1) Claims drag a long time to process and workshop take months to be reimbursed for their work. Hence most will factor in a certain % to cover the slow payments

2) Claims and counter claims also results in going to the lawyer and with the court heavy workload, the cases can be back dated very badly.

3) Workshop charges I suspect is quite min now as compared to the lawyer fee.

[Sci10213]

Point 2 is already practised by some companies but it does not help a lot. Why? Because when an accident happens, no one will admit or report honestly. If you are in the wrong, you will report another story so as to protect your NCD.

 

When different stories given - how to settle claim? And no one wants to give way also. Hence lawyers come in to litigate the mater & drive up the claim costs when the case is brought to courts.

 

Lawyer fees high - Yes it is true but this is allowed by the courts.

 

So who is to be blamed? Think again...