A consumer approached me on this problem. He had a minor accident 8 months ago. He decided not to make any insurance claim and carried out his own repairs. He has now received a large claim from the other vehicle with a witness report that placed him in the wrong. The claim was inflated and the witness was probably ,making a false statement.
He submitted the third party claim to his insurance company - but the claim officer rejected the claim as he did not make a report at the time of the accident. He is now in a dilemma and does not know how to handle the third party claim.
His only recourse was to engage his own lawyer to fight the claim, but it would be costly. It was likely that the claim was fraudulent but it was quite sad that his insurance company was not assisting him on this matter.
He submitted the third party claim to his insurance company - but the claim officer rejected the claim as he did not make a report at the time of the accident. He is now in a dilemma and does not know how to handle the third party claim.
His only recourse was to engage his own lawyer to fight the claim, but it would be costly. It was likely that the claim was fraudulent but it was quite sad that his insurance company was not assisting him on this matter.
In Singapore the honest and sincere people lose out. Is it any wonder that people in this country learn to become selfish, self-centred, conniving and cunning from 4 yrs old onwards?
ReplyDeleteThis has happened to me before.
ReplyDeleteEven when it's a minor accident.
And both drivers agree not to make claims against each other.
I always make sure;
a. We exchange our i/c details and contact details.
b. Take photos.
c. We both sign an agreement to renounce all claims against each other.
d. I make my report to IDAC
e. I also keep my insurance company fully informed. Thus far, they have never once increased my premium or drop my NCB.
So far I've not had any problems.
But if there is an easier way to "cover my ass", please let me know.
Lesson No 1 here, whether minor or major accidents, first report to insurer first, irregardless of whether you wan to proceed with the claim, in case you get stabbed in the back by other Party. Dun forget to submit cell phone photos as proof, especially if you are not at fault.
ReplyDeleteit is always better to file a report or atleast a private settlement form signed.
ReplyDeleteIt is a pity that FISCA cannot assist with legal recourse because of vested interest in the insuarance industry.
ReplyDeleteI would be bold and counter with a letter to refute and invite them to take the matter to the courts.
If you back down, they know they have a foot in the door, and they will be embolden. Deny them that.
Let the witness testify.
Let the legal process escalate
Let the world know how the case is evolving
Create a blog and twitter often to expose the legal system, to expose the charade of insuarance practices
Expose the inadequacies of the entire justice framework and how it was built to defend, protect and perpetuate this practice.
It is common knowledge that if you do not intend to claim, you make sure the other party sign a form that says so. The form can be downloaded at NTUC insurance website. In singapore or just about anywhere else, if you are ignorant, than you are going to be makan-ed. Hard truth.
ReplyDeleteI have another story to share.
ReplyDeleteHad a hit-from-behind at a Traffic Light last August. The other driver wanted to pay me but I insisted that he follow me to my Distributer/Workshop.
We were advised that the repair to my car would be in the thousands !
I advise the other driver to make his report & I proceed to make mine at the Distributer/Workshop location as the Insurance had an office on site.
It was not easy to come to a conclusion that I had to claim against my insurance first, in order to get the repair stated. Have to wait for the other party Insurance agent to come around if I insisted on claiming against the other party !
Well, I got my "courtesy car" soon after.
Weeks after collecting my repaired car back and paying the excess, my own Insurance will always claim that the other Insurance party had not responded.
Well, months later and many visits to my Insurance, I finally get hold of a copy of the other party
acknowledement to my own Insurance.
I called the hot-line and gave the gentleman at the other end my details. It was incidentally a Saturday afternoon
Yet by the next Friday, I had a proposal from the other Insurance party to settle. Was offered the Excess I had paid up front.
I can tell you all, that I went down to my Insurance agent to tell them that the other party had responded & I have accepted their offer & made up my mind NOT to re-insure with them again.
By the way, my Insurance was re-newed In July last year, so I was prepared for a drawn out ding-dong among the Insurance companies.
Human nature is such that if we know we can claim, we will look for the most expensive choice, thinking it to be the best.
ReplyDeleteWhat happens if you do not know about your right to claim? Would you not look for cheapest yet reasonable standard to repair?
All problems about motor care insuarance will disappear once the regulators of motor cars withdraws compulsory insuarance.
It was implemented long, long ago when the world of driving was more dangerous and people died. Remove it and we will have a true market.
At the moment, people are making mega bucks from suckers .
All it takes is for the Police to act on some of these scams, and the syndicates (i.e. workshops, lawyers and doctors) will know that the Government is serious about combating fraud - and will lay off. But the Police has been closing an eye, or not acting against it for the past 20 years, and the Minister of Home Affairs has not asked the Police to act on this matter. This is why the fraud gets bolder and bolder.
ReplyDeleteInsurance is a form of risk management primarily used to hedge against the risk of a contingent. for any kind of insurance you must full detail about accident. In that case it will be beneficial for you.
ReplyDeleteHi there,
ReplyDeleteI recently kissed a taxi at the traffic light. It was green light I thought the taxi was moving off so I release my brake. But the taxi didn't move so I slightly touched his bumper which is the Toyota crown taxi which has a plastic bumper. It was just a touch. He was nice and told me it's okay and ask me to go off first.
Then few days later, I received a letter from the insurance co. saying that he has made a claim
with my vehicle. And that I fail to inform the insurance company. And even claimed that his car boot cannot close. But all the car did was have a small contact with plastic bumper which I completely didn't know that it will be blown out to such extent. Furthermore I gave him my contact details, when asked for his he said he will call me which he didn't. And shockingly I receive the insurance letter althought he said it was ok and asked me to drive off first. Under such circumstance, what can I do? What if he is going to claim a large amount of money?
I really appreciate the work you have done, you explained everything in such an amazing and simple way.
ReplyDeleteMotor Insurance