Yewheng Twincharged May 4, 2016 Share May 4, 2016 Hmm... Compare the annual premium for covering 1 entire building vs covering 1 entire car & then compare the losses from a claim from 1 whole building vs claim from 1 whole car - which is higher / bigger total risk to the insurance company? Anyway some insurance companies have employed in-house surveyors to look at damaged cars but may not be looking at all damaged cars. And yes, I think some/most of these in-house staff are former mechanics or trained in mechanics. That is not enough leh, I mean there are some really went to the extend to fake injuries.. So I believe insurance company should follow what they did for travel insurance, call people up for questioning if suspected inflated or fraudulent claim for motor insurance. ↡ Advertisement Link to post Share on other sites More sharing options...
Nzy Twincharged May 4, 2016 Share May 4, 2016 (edited) That is not enough leh, I mean there are some really went to the extend to fake injuries.. So I believe insurance company should follow what they did for travel insurance, call people up for questioning if suspected inflated or fraudulent claim for motor insurance. Might be the profits still good enough that it doesn't make economic sense to do all these lo. They can just get more profits by increasing premiums. Haven't reached the point where its so expensive that people complain. Anyway, travel insurance not compulsory, car insurance is compulsory, so its kind of like a monopoly and the drivers don't really have much control over the price. Whether they like it or not, want to drive need to have insurance. Whereas for travel insurance, not compulsory so the consumers have more control over the prices thus they need to ensure they profit by identifying fraudulent claims. Edited May 4, 2016 by Nzy Link to post Share on other sites More sharing options...
Yewheng Twincharged May 4, 2016 Share May 4, 2016 (edited) Might be the profits still good enough that it doesn't make economic sense to do all these lo. They can just get more profits by increasing premiums. Haven't reached the point where its so expensive that people complain. Anyway, travel insurance not compulsory, car insurance is compulsory, so its kind of like a monopoly and the drivers don't really have much control over the price. Whether they like it or not, want to drive need to have insurance. Whereas for travel insurance, not compulsory so the consumers have more control over the prices thus they need to ensure they profit by identifying fraudulent claims. Yes that's the main problem.. Guess GIA should step in lao.. Make sure insurance company do the right thing to stop fraudulent claim for motor insurance. They always keep don't want to do something, and took the easy way out to increase premium for motor insurance. Then look at what they did for travel insurance, so much different. Edited May 4, 2016 by Yewheng Link to post Share on other sites More sharing options...
Darryn Turbocharged May 4, 2016 Share May 4, 2016 The surveyors and the insurer-authorised workshops are best buddies. Their best practice is to recommend new replacement whenever possible and only conduct repairs when damage is very minor. This is to ensure maximum revenue for the workshops. I've seen cases when the driver has confirmed claiming the repairs from insurance, the authorised workshops will be super enthusiastic in closing the deal as the surveyors will help to support whatever quotation produced by the workshop. But upon realising that the driver will not be claiming any insurance (pay from own pocket), the authorised workshop will immediately lost interest in the deal as that will mean more hassle and less revenue as the driver will tend to scrutinise the quotation, minimise unnecessary repairs and bargain. Moral hazard lah... If I'm not paying then claim gao gao, even only 1 small scratch must replace part, cannot respray. As to the problem of fraudulent claim - the issue is two fold Firstly, medical claim is difficult to prove / disprove, and often requires a lot of followup - which for an "unwilling" participant can be tough. But more relevantly - in many many of the cases it is actually cheaper to settle the claim than to investigate. Even a basic investigation costs how much? Will include specialist visit, xray report writing - and that is assuming the claimant is willing. If the claimant is not willing? It would most likely include court and lawyer cost to "force" the issue...none of which comes cheaply. Then if want to "follow" and gather evidence - a private investigator doesn't come cheap either. At the end of all of this - what's the outcome? Likely a court case, for which, even if you win, you cannot claim your legal fees (or at least, on around 60-70% of the legal fees). If seen the numbers from US Insurance fraud reports - often for claims that are on the "smaller" side (read around the $10-$20k mark) it simply isn't economic for the insurance company to "chase" the claims. Of course - if you don't chase, then the dishonest come to know that under a certain threshold it is easy money, and the number of claims balloons, so in the longer term it's a losing proposition for the insurance company Link to post Share on other sites More sharing options...
Yewheng Twincharged May 4, 2016 Share May 4, 2016 (edited) Moral hazard lah... If I'm not paying then claim gao gao, even only 1 small scratch must replace part, cannot respray. As to the problem of fraudulent claim - the issue is two fold Firstly, medical claim is difficult to prove / disprove, and often requires a lot of followup - which for an "unwilling" participant can be tough. But more relevantly - in many many of the cases it is actually cheaper to settle the claim than to investigate. Even a basic investigation costs how much? Will include specialist visit, xray report writing - and that is assuming the claimant is willing. If the claimant is not willing? It would most likely include court and lawyer cost to "force" the issue...none of which comes cheaply. Then if want to "follow" and gather evidence - a private investigator doesn't come cheap either. At the end of all of this - what's the outcome? Likely a court case, for which, even if you win, you cannot claim your legal fees (or at least, on around 60-70% of the legal fees). If seen the numbers from US Insurance fraud reports - often for claims that are on the "smaller" side (read around the $10-$20k mark) it simply isn't economic for the insurance company to "chase" the claims. Of course - if you don't chase, then the dishonest come to know that under a certain threshold it is easy money, and the number of claims balloons, so in the longer term it's a losing proposition for the insurance company But wait, aren't travel insurance claim also difficult to prove for lost of item etc, insurance company also managed to question them and some backed off after they went for interview with the insurance company? It is whether the insurance want or don't want to do only as simple as that. Somemore there are some clear cut cases where something must be fishy, like slight hit in bumper can cost 8k in medical bill? Don't go bulls**t lor, this one I confirm that if insurance company ask them up for interview, some will sure backed off one. Like this can save people previous time especially go into court case. If they have time to play, so be it and see who is more fierce lor. I also believe in economy of scale. Means, insurance companies can just set up one department just for questioning those suspected inflated claim. Spend a little bit more and remove some inflated claim end up is win-win for those affected party and insurance company leh. Edited May 4, 2016 by Yewheng 1 Link to post Share on other sites More sharing options...
Ysc3 Twincharged November 1, 2017 Share November 1, 2017 best to report any accident, regardless big or small. 1 Link to post Share on other sites More sharing options...
Yewheng Twincharged November 21, 2017 Share November 21, 2017 (edited) https://blog.moneysmart.sg/car-insurance/car-insurance-fraud-singapore-driver/ Good read.. Next time must take picture of those who come in and help to give name card. Even if the guy said don't take picture he not involved in accident, don't care just take. If he get offensive tell him off said, I will take picture just incase you maybe one of the person who stage an accident. Beter still video record it. The guy who come out so willingly to help but not for last car, quickly video camera the whole process and also the guy car plate number if possible. Also straight away report to insurance company that you suspect there maybe insurance fraud coming soon based on your suspect and of coz your reason. If insurance companies don't accept your reasoning saying the claim haven't come, just report to police and contact insurance fraud hotline. The main thing is to get it sort out as soon as possible and not wait till many months later and got a shock of suddenly so huge claim insurance for such small hit. This will save a lot of headache later on. Edited November 21, 2017 by Yewheng ↡ Advertisement Link to post Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In NowRelated Discussions
Related Discussions
Good Workshop To Repair Clutch and Gearbox for Auto Trans
Good Workshop To Repair Clutch and Gearbox for Auto Trans
Food delivery firms take up third-party liability insurance
Food delivery firms take up third-party liability insurance
Advise on car insurance
Advise on car insurance
Bad Auto Dealer - Salesman!
Bad Auto Dealer - Salesman!
Writ of summons
Writ of summons
MAS to allow online nomination of insurance beneficiaries
MAS to allow online nomination of insurance beneficiaries
What does your home insurance cover?
What does your home insurance cover?
Reputable like Lye Design in Amk Auto-point
Reputable like Lye Design in Amk Auto-point