jq75
Honorary Member
- Joined
- Dec 5, 2000
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Motor insurance system needs fixing
YESTERDAY'S letter by Mr Clement Foo Dun Jie ("Governing body needed for motor insurance claims") struck a chord with me. Over the past few years, my wife's car has been hit twice by other vehicles.
In the first incident, her car's rear bumper was dented and loosened. The other driver admitted liability - not in writing, unfortunately - but denied responsibility subsequently when claims reached his insurance company, even counter-claiming that my wife was at fault.
In the more recent incident, a lorry struck my wife's vehicle from behind, causing her car to hit another one in front.
Her insurance company would not help with the third-party claim. But with photographic evidence and a police report after medical checks, the motor workshop was able to make a successful claim.
But when the insurer of the car in front made a claim against my wife's insurance, her insurer decided to settle it, which affected her no-claim bonus.
The current system has the following problems:
Third-party claims have to be made by the insured, and not the insurance company. This creates an uneven playing field of layman and workshop versus insurance company, which is made even more difficult by legal costs. It is also possible for workshops to inflate claims.
The reasonable policy of not involving the police in minor accidents makes it hard to obtain verified evidence in many cases, making third-party claims difficult.
The no-claim discount system forces the innocent party to pay up instead of pursuing those at fault for minor damages.
It would go a long way towards fixing these problems if:
For all claims, the motorists' own insurance company arranges for repairs and takes up third-party claims. Insurers should stand by their policyholders.
The Independent Damage Assessment Centre (Idac) is charged with the responsibility of collecting evidence from both parties, even when only one reports an accident. Enforcement can be through collective action of insurance companies.
The no-claim discount is replaced by generally low rates, with surcharges on drivers deemed unsafe based on the Idac accident database. Innocent drivers should not be penalised for others' recklessness.
Would the Automobile Association of Singapore care to take these up with the motor insurance industry?
Su Guaning
YESTERDAY'S letter by Mr Clement Foo Dun Jie ("Governing body needed for motor insurance claims") struck a chord with me. Over the past few years, my wife's car has been hit twice by other vehicles.
In the first incident, her car's rear bumper was dented and loosened. The other driver admitted liability - not in writing, unfortunately - but denied responsibility subsequently when claims reached his insurance company, even counter-claiming that my wife was at fault.
In the more recent incident, a lorry struck my wife's vehicle from behind, causing her car to hit another one in front.
Her insurance company would not help with the third-party claim. But with photographic evidence and a police report after medical checks, the motor workshop was able to make a successful claim.
But when the insurer of the car in front made a claim against my wife's insurance, her insurer decided to settle it, which affected her no-claim bonus.
The current system has the following problems:
Third-party claims have to be made by the insured, and not the insurance company. This creates an uneven playing field of layman and workshop versus insurance company, which is made even more difficult by legal costs. It is also possible for workshops to inflate claims.
The reasonable policy of not involving the police in minor accidents makes it hard to obtain verified evidence in many cases, making third-party claims difficult.
The no-claim discount system forces the innocent party to pay up instead of pursuing those at fault for minor damages.
It would go a long way towards fixing these problems if:
For all claims, the motorists' own insurance company arranges for repairs and takes up third-party claims. Insurers should stand by their policyholders.
The Independent Damage Assessment Centre (Idac) is charged with the responsibility of collecting evidence from both parties, even when only one reports an accident. Enforcement can be through collective action of insurance companies.
The no-claim discount is replaced by generally low rates, with surcharges on drivers deemed unsafe based on the Idac accident database. Innocent drivers should not be penalised for others' recklessness.
Would the Automobile Association of Singapore care to take these up with the motor insurance industry?
Su Guaning
