Tan Kin Lian's Blog: Insurance loophole? Cabby refuses to pay up for car accident

Sunday, March 28, 2010

Insurance loophole? Cabby refuses to pay up for car accident

http://motoring.asiaone.com/print/Motoring/Drivers/Story/A1Story20100325-206694.html

Cabby refuses to pay up for car accident and discharges insurance firm from payment but he is only willing to pay $300 out of a $2,000 bill.

14 comments:

Learning all the time! said...: Interesting development.

Amazing! I have learnt a new way to handle accidents! Appears to be highly effective.
I did not know that one could discharge ones own insurer, and absolve the insurer of all responsibilities!
Certainly an option that insurers would love for the insured to take.; March 28, 2010 1:25 PM
Anonymous said...: IDAC assessment is close to $2000 and cabby offer $300, is that a mockery of the system? Whose idea to have IDAC in the first place, might as well abolish it!

I see the ball pushed from LTA to GIA and back to consumer. Great to have such companies around.

Basically, the attitude is "we only offer guidelines, but it is not enforceable by us - you want to enforce it, seek legal ways".; March 28, 2010 1:29 PM
Anonymous said...: I would think, going to the small claims court will be cheaper, for a start and then... assess after that judgement, the only question that will arise was the damage cost reasonable?

Now,a very good case of excessive claim?

Might be a good lesson for those who make unreasonable claims!

Think there is a few learning points in this case.; March 28, 2010 3:07 PM
Lye Khuen Way said...: Just about everthing in S'pore is like that !
I always wonder if we still have a Government/ Civil Service in place. Notice I did not add the Judiciary.
'cause, if the Police do not forward to the AG Chamber, to procecute who is there to sit and judge upon !
Hope I am not too naive.; March 28, 2010 3:14 PM
Anonymous said...: So if it is an accident that cost less than 2k, the trick would be to follow the cabby example by discharging your insurance company so u dont loose your no claim bonus and at the same time refuse to pay. The other poor guy would give up and the ins company make a lot of money and you dont loose either. This is only possible in the eyes open big big environment.; March 28, 2010 3:25 PM
Ex-Con said...: Never trust taxi drivers or 3rd-party drivers like delivery, despatch, courier etc. If they can siam, they will siam.

You should do all necessary info recording and reporting, including to police and to the other party's company as well. Get names, IC numbers and vehicle registration numbers, if possible also the other party's insurance company and policy number. Always take photos of the vehicles, surrounding areas, road conditions etc. Use your handphone camera or better still, carry a cheapo digital camera in your glove compartment. Make all reports ASAP.

When comes to money matters, never leave anything to chance. People in front of you will always be nice, put on a smiling face, use soothing tone when speaking etc. When comes to paying up, that nice guy suddenly become Mr Hyde.

1 big example 90% of people have not done: Estate planning. Are you depending on intestacy laws to decide for you how your money going to dependants and relatives? Do you know how long it takes and what it requires to rely on intestacy laws? Are you relying on insurance nominations? Is is 3rd-party life insurance? Does it come under Insurance Act, Co-Op Act or CLPA? Is it revocable or trust nominations?; March 28, 2010 5:04 PM
Anonymous said...: Guys. Do not try this to save a few hundred dollars to 1-2 thousands dollars.

There's a few options. Cheapest is small claims tribunal.

Next, a lawyer could write a serious of letters demanding the debt. All such expenses are claimable against the other party.

Personally, I would take the legal route. I may pay 1-2 thousands more, but I will treat it as community service. And I believe that the cabby would not want a garnishee order or bankruptcy petition up his arse.

regards; March 28, 2010 6:14 PM
Anonymous said...: I wonder if things need to go the legal route if the process is adequate. As we can read from the report, even if the court rule in favour of the motorist and that the taxi driver is at fault, but so what? if he says he got no money and refuse to pay up, what can anyone do?

If the first place, there should not be anything call a "discharge letter" because it is as saying that the taxi driving around based on self-insurance. If every taxi driver can "discharge" the taxi company of any responsibility in the event of an accident, then the playing ground is not even for motorist. If the tables are turned, and the motorist hit the taxi instead, can the taxi company don't come after the motorist?

So the new paper is right in questioning if there is a loophole in TransCab taxi claim management process.; March 29, 2010 9:00 AM
Anonymous said...: I totally agree with Anonymous 6:14 PM

We should not let this `loophole' be taken advantage by reckless drivers.

Even if it costs money and you may not get any back due to the guilty party's bankruptcy, it is worth doing. I would go all out to make that guy's life miserable, as a lesson to other irresponsible people.; March 29, 2010 9:25 AM
Anonymous said...: human nature to do what is best for themselves. Coming from a tax driver family and working in an ins company, I can share with you that every cabby needs to deposit a sum of cash (~$2000) to the taxi company. Taxi companies buy fleet motor insurance from insurance companies with very poort claims settlement standards (simple logic: cheap price = lousy service = poor claims settlement).
Taxi companies are the ones deciding how much excess to bare, and by transferring this liability to the cabby, clearly, is a MEGA burden.
It is a thing to blame the cabby, but hey, he is definitely not smart enough to do this without being prompted by the insurance staff or taxi company.
So, it's a human and ethical issue.; March 29, 2010 11:11 AM
supporter said...: Stand your ground.

It is to ensure that justice is served. Please understand that your cost of pursuing this may mean more than $20,000 till it is settled.

Do you believe that you are "right"?
If so, go the legal route and at least establish from a professional lawyer if you have a case.
If so, you should pursue it.Seek redress and compensation for time, repairs,personal anxiety and trauma and all costs including taxi
rides ( ironical isn't it?) and legal costs including court fees etc..

They may ask for a settlement out of court.. depending on the strength of your case and your personal beliefs.. do not give in.

This case serves as an opportunity to expose the weakness of our regulators and the ethics of businesses here.

You may want to garner public support for funds.. this may be a chance for the public to stand firm against unethical commercial enterprise.. finally, we have a crack that we can drive a wedge through.; March 29, 2010 12:53 PM
LWL said...: In any accident, even the most innocent party is culpable to a certain extend for the cause of it.

To take the matter legally in a court of law would be expensive, to say the least.

It would also be likely that the any settlement would be based on percentage in contributing to the accident.

So it is likely that legal cost, given that this is Singapore, will not be fully recovered. ie, you would be better off letting the matter rest.

So, end of the day, it is the inadequacy of the present legal position, where by law, only personal injuries is needed to be covered, that is the problem.

The government today does not see it necessary to intervene to correct this misnomer. If you feel otherwise, then please exercise your rights at the ballot box.; March 29, 2010 11:19 PM
Anonymous said...: Many have commented that a lesson should be taught to the taxi driver, and that it is not the cost involved in pursuing the matter.

But how many know what, really, what it means to pursue the cause in court?

Assuming a judgement is obtained at the small claims, then what? if payment is not made? what is the next cause of action???

If a summary judgement debtor is obtained from our courts and no payment is forthcoming, then how?

A garnishee order?? What if the personal account of the individual does not have a balance that can fulfill the debt obligation, then how??

A writ of seizure and sale against movable property???? What if the premises is jointly owned?? and it is difficult to proof ownership of the movable properties?? then how???

Many in their hope to seek justice for the aggrieved, have simplified the entire process....

My honest opinion, is, to let the matter rest because the law is not in your favour....

Try as hard as you may, it will likely come to nothing.

So whose fault is all this, well, it must be the people that choose not the make any changes to the legislation....; March 29, 2010 11:41 PM
Anonymous said...: "Personally liable" is worse than letting the insurer settle this. He's putting his personal property on the line.

This is not a loophole or anything. It's more of the taxi driver betting on the other party not doing what to do next.

Hope the car owner knows a thing or two about liens.; April 06, 2010 11:18 PM