Wednesday, June 06, 2012

High cost of motor repairs

I understand that the average repair cost for a car damaged in a collision is $4,000 in Singapore.

An insurance company in Jakarta told me that their average repair cost is $300 and that an insurance company is able to repair a car at a lower cost than consumers, due to their volume of business.

In Singapore, the insurance company pays more than 2 times of the cost  paid for consumers for the same repair. The average repair cost in Singapore is 10 times of the cost in Jakarta. There is something seriously wrong with the business model in Singapore, leading to high cost for motor insurance repairs and premiums.

This has been a problem that our authority and the insurance company had been unable, or reluctant, to address for several decades.  It is another factor contributing to the high cost of living in Singapore.

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