High time the authorities do something.
Car Owners' grief, as reflected in Letters to Straits Times -
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Must insurer pay out claim if vehicle is not damaged?
Published
Nov 4, 2015, 5:00 am SGT
I agree with Mr Kenneth Kong Kitson ("Greater transparency needed in motor insurance claims"; Oct 27).
I was in a similar situation when my car just "touched" the rear bumper of another car.
As there was no damage to either vehicle, I apologised to the other driver and assumed that everything was over and we would each go on our way.
To my surprise, I received a letter from my insurer NTUC Income that a claim had been made against me by the other party for $7,895.95.
I felt that the other party was trying to inflate the costs. So I disputed the amount and submitted photos to prove that there was no damage to the two vehicles.
Income sent me a second letter stating that it had negotiated a settlement with the claimant, and that my no-claim discount would be reduced.
My motor insurance premium would also be loaded as I had been blacklisted as a bad risk.
Must insurance companies pay out in damages even when there is no sign of damage to the other vehicle?
Is an insurance claim warranted when a vehicle merely "touches" another vehicle?
Such payouts are pushing premiums up.
Consumers need to know that insurance companies can be trusted and that they are working for their customers' interests.
Jimmy Lauw Thian Chye
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Zero tolerance for fraudulent, inflated claims
Published
Nov 6, 2015, 5:00 am SGT
Mr Jimmy Lauw Thian Chye asked why NTUC Income paid out a third-party claim in an accident he deemed to be extremely minor ("Must insurer pay out claim if vehicle is not damaged?"; Wednesday).
We agree with Mr Lauw that the initial demand of almost $8,000 from the other driver involved in the accident was excessive.
That was why we negotiated for a much lower amount, including legal fees and miscellaneous charges.
We spoke to Mr Lauw and received his consent before we settled the claim in June last year.
With the claim settlement, Mr Lauw's no-claim discount (NCD) was reduced by 30 per cent.
The details of the NCD are stated clearly in the motor insurance contract, and is a standard practice among all motor insurers.
Regarding Mr Lauw's assertion that his insurance premium would be loaded, he was, in fact, offered a renewal of his motor insurance at the standard premium rate.
It is also untrue that Mr Lauw was "blacklisted as a bad risk" as it is not the practice of NTUC Income to blacklist any motorist due to bad claims experience.
Claiming against another party in a road accident is a civil claim that typically involves costly and time-consuming legal proceedings.
We advise motorists to make road safety their top priority when they are driving.
In the unfortunate event of an accident, it is advisable to settle minor accidents amicably.
For more serious accidents, they should contact their insurers immediately, or as soon as it is safe to do so.
NTUC Income policyholders can engage the help of our Orange Force riders to render assistance at the accident scene.
Under no circumstances should motorists allow their vehicles to be taken away by unknown parties.
Finally, NTUC Income has zero tolerance for fraudulent or inflated claims.
Any suspicious claim will be thoroughly investigated and referred to the authorities once we have sufficient evidence.
Over the years, a number of these cases have been prosecuted in court.
Peh Chee Keong
Vice-President
Motor Insurance
NTUC Income
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Why was claim paid out when car was not damaged?
Published
Nov 16, 2015, 5:00 am SGT
I thank NTUC Income's Mr Peh Chee Keong for his reply ("Zero tolerance for fraudulent, inflated claims"; Nov 6). But a few points bear clarification.
First, I did not willingly agree to any payout, as I was trying to prevent Income from paying out a possibly fraudulent claim. But I was told that if I did not agree to its proposed settlement amount, I would have to represent myself in court to take up the case further.
Not wanting to take over the case myself, I had no choice but to agree with whatever payout Income had decided on.
Second, Mr Peh said I was offered a motor insurance renewal at the standard premium rate.
Before the accident, my insurance premium was $800, but after the accident, it went up to $1,400, even after the 20 per cent no-claim discount (NCD).
I have tried to obtain quotes from various other insurance companies, but was told that since a claim had been made against me, there will be a loading on my future premiums. Does that not make me "blacklisted as a bad risk"?
As the accident was very minor, I did try negotiating with the other party, as I did not want to lose my 50 per cent NCD, but the other party was very unreasonable and wanted an exorbitant amount from me.
From the very outset, I had informed Income many times that the other party would be trying to inflate the claim.
I submitted photos taken after the accident, which supported my contention that there was no damage to both vehicles.
Moreover, how could my vehicle have caused so much damage to the other party's vehicle if there was no damage to mine to warrant any insurance claim?
I appreciate Mr Peh's stand of zero tolerance for fraudulent claims but he still did not address my question: Must insurers pay out claims even if a vehicle is not damaged?
The insurer would not have disagreed with me if it had reviewed the photos I sent them.
Jimmy Lauw Thian Chye
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Insurers shouldn't pay out claims too readily
Published
Nov 17, 2015, 7:06 pm SGT
A few years ago, I experienced an incident similar to Mr Jimmy Lauw Thian Chye's ("Why was claim paid out when car was not damaged?"; Nov 16).
A bigger car reversed into my car and damaged the left rear door which was subsequently replaced.
The other owner, a younger man, apologised to me and suggested that we settle our own repairs without claiming from our insurance policies.
His car was hardly damaged as its spare tyre was mounted externally, at the rear.
I claimed from my insurance company while the other owner engaged a lawyer to make a claim against me.
My insurance company's claims executive called me to inform me that the insurer had agreed to the payout to the other party even after my explanation.
The reason that many claims are paid out by insurance companies is very simple: They do not want to spend money on costly litigation. Any payout can be recovered from clients' increased premiums over the next few years.
Lim Jit Chaing
