Thursday, June 07, 2012

Motor insurance premiums continue to increase


Why are motor insurance premiums so high in Singapore and increasing year after year? What can be done about it? http://tankinlian.com/FramePDF.aspx?ID=656

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3 comments:

Anonymous said...

In places like America, motor insurers are proactive. They conduct prevention courses, insist on driver tests, and keep in touch with customers.

In Singapore, motor insurance is considered a loss making necessity. No institute really wants to sell motor insurance; it is just that they must do so in order to sell other types of insurance.

This results in a slew of problems, such as outsized repair claims becoming the norm.

Also, safe drivers are forced to pay for the mistakes of reckless drivers.

Every time a road accident happens, motor insurers simply raise premiums across the board. Even if I drive safely, my premiums still increase when the average number of accidents (island wide) goes up.

I sometimes suspect that motor insurers may even DESIRE more accidents, as this gives them an excuse to raise premiums.

I think if a motor insurer comes forward to insure ONLY safe drivers (pre-screened), they can keep premiums lower for those drivers. And they will be able to capture a large market share, assuming their service is good.

June 07, 2012 11:14 AM
shiqi said...

There is a open secret. A repair cost done personally by the owner is so much cheaper than claiming an insurance.

This is no just motor insurance, all form of claim, be it insurance, medisave etc are much higher across the board.

This really have a double standard of payment, why claim is always higher than personal payment? To my view of thinking, correct me if I am wrong, this is because insurance company are lazy and do not check why the claim are so high and they just pay whatever amount asked for.

True, the insurance company would so they always negotiate with the workshop for lower claim, but is it true that the claim is lower than anyother person is paying? Nope and this is against the economic of scale.

June 09, 2012 6:11 AM
Anonymous said...

Mr Tan, I was involved in a scam and would like your advice. In May, I accidentally hit another vehicle, and so subsequently went to IDAC and to an approved workshop to make repairs. The approved worshop assessed the damage to the 3rd party to be only $300 so we signed a private settlement, which appears to be an NTUC private settlement form. To my shock, the 3rd party had claimed $2000 from my insurer. This is despite us following proper procedures to report to IDAC and to use an approved workshop. All this while, the insurer did not even inform me or ask for evidence to substantiate the $2000 claim. How is this even possible?

July 24, 2012 10:50 PM

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