Monday, May 24, 2010

High insurance premium for school bus

Mr Tan
Currently for school buses insurance had gone up significantly and beside this NTUC are now selecting their customers i.e those with accident (be it only 1) during the year NTUC at the moment decide not to cover the policy instead of qouting a price. ( as being part Government shouldnt NTUC be helping instead of pushing them away and just drop them?)


Currently in the market we only have NTUC, AXA and Liberty for school buses insurance coverage. However, with NTUC choosing their customer the other two companies will increase their price higher and this vicious circle will cause a huge problem as drivers cannot afford it and their "rice bowl" will be a big issue as most of them have only lower primary level and without insurance there will be no road tax and no where to turn to for help.


Please Mr Tan, I would really like to help the drivers but could you point me to the right direction and what to do? On behalf of the drivers - We thank you for your advise and appreciate any help you are able to offer.


REPLY
I suggest that you write a letter to the newspapers (straits times or zhao bao) to highlight your dilemma. I hope that the public attention will get the authority (i.e. MAS or LTA) to find a solution.
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3 comments:

Anonymous said...

They have a good case but obviously don't have the power to counter such abuse by the insurance companies. They should ALL go and see their MP. If only a few do it, they usually just get brushed aside!

May 24, 2010 9:56 AM
Huang W said...

Its the same with the "Work Injury Compensation Act". The government (MOM) changed the system but did not make sure that the insurance companies offer a reasonable package to cover this mandatory requirement.

When SMEs approach the insurance companies (including INCOME), they are forced to buy all sorts of other insurance because these companies would not sell the insurance without packaging it with other products.

The SMEs have no choice but to accept a package with 3/4 of the coverage they do not want anyway.

Its a case of MOM taking the credit for a policy change while the SMEs have to pay for the lack of full consideration for implementation.

May 24, 2010 12:25 PM
Anonymous said...

so we think it is the abuse by insurance companies. Insurance companies operate to make a profit like all other businesses. If bus insurance is not profitable, they will not want to insure it. There needs to be critical mass to earn enough premiums to pay the claims incurred by a small group of reckless bus drivers.
It is always the same issue of the minority makes the majority suffer; remember the "sabo king" in NS. Same theory.
If these companies lose money every year, very soon, all these companies will go bankrupt and motorists will have no ins companies to go to for insurance cover.

May 27, 2010 6:23 PM

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