Does car insurance policy cover car pooling?

Dear Mr Tan.

I wish to compliment you for the many interesting topics and tips.

Regarding your comments on car-pooling and payment of $2 per trip, would this not constitute using one's private car for business?. Will the insurance cover any accidents occuring during such trips?

LL

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Dear LL

The payment of $2 per trip is considered as sharing the expenses of the car. In fact, the actual expenses is much higher, so a higher payment is justified. It does not constitute using the private car for business.

I believe that NTUC Income's insurance policy will cover this situation. I will ask the head of motor insurance to confirm it.

Tan Kin Lian

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The private car insurance policy issue by NTUC Income covers use of the Insured car for social domestic and pleasure purpose and in connection with the Policyholder's business or profession.

The car-pooling with a small payment of $2.00 will be covered under our private car policy.

Eddie Loke
Head, Motor Department
NTUC Income