Insurance to cost more.... WTF!!!!!

[Nlatio]

From Straitstimes.com

 

"Motor insurance to cost more

 

INJURY claims arising from road accidents nearly doubled last year to more than 16,000, and motorists at large are expected to foot the bill.

Citing such claims as one of the causes for last year's motor insurance underwriting loss of $214 million - an all-time high - the General Insurance Association (GIA) said on Thursday premiums may rise this year. Yet again.

 

The average motor premium has been creeping up since 2006. Last year, it shot up 15 per cent to $1,013 - the sharpest in years.

 

This year, the Big Three - NTUC Income, AIG and AXA - have indicated that they will raise rates. Income said its premiums will go up by 20 per cent 'on average', while the other two did not have figures on hand.

 

The rises come in spite of repeated attempts by the trade to check fraudulent or inflated claims, which the GIA said were largely responsible for the losses.

 

Last year, the industry - consisting of 27 insurers - paid out $742 million in motor claims, up from $582 million in 2007.

 

Motorists got into 17 per cent more accidents last year, resulting in 473 reports of scrapes a day. But these resulted in a far bigger jump in injuries - an 86 per cent jump to 16,174 reports last year.

 

Mr Pui Phusangmook, the GIA's motor convenor, said many insurers are facing 'multiple injury claims', many of which are suspicious. He cited the example of an accident that resulted in minor dents on the bumper of an old Japanese car. But its driver and four passengers filed injury claims exceeding $40,000. 'Their medical reports were from a family clinic, and were almost identical,' he said. 'Only the names were changed.'"

 

NBCCB....................

 

 

[Familymanz]

why no one point finger at garment?

[Pcslim]

Another cartel (after the petrol companies) at work...

[Ryanyusoff]

The rises come in spite of repeated attempts by the trade to check fraudulent or inflated claims, which the GIA said were largely responsible for the losses.

 

 

 

Mr Pui Phusangmook, the GIA's motor convenor, said many insurers are facing 'multiple injury claims', many of which are suspicious. He cited the example of an accident that resulted in minor dents on the bumper of an old Japanese car. But its driver and four passengers filed injury claims exceeding $40,000. 'Their medical reports were from a family clinic, and were almost identical,' he said. 'Only the names were changed.'"

 

how contradicting is the report.first GIA say "repeated attempts" were made to check fraudulent.Then they say there are 'suspicious' claims.Then why the hell they must put on the extra burden to all other drivers that drive safely doesn't make any claims??why don't they punish it on to those "suspicious" cases?or is the investigation into these 'suspicious' cases just wayang?

why not they look on the other side of the coin and introduce other rewards/rebates aside from NCD for non claiming?Living here is really getting damn expensive.anyhow price increase without valid logical reasons.

[Silver_blade]

That's how insurance works....those who don't claim (the majority) 'pay' for those who make claims.

 

In any case I feel the increase could be due to the new reporting-scheme. What used to be just a private settlement....may end up making claim instead.

[Mycarinsurance]

Unfortunately in this economic crisis, most companies would prefer to be prudent, what more companies that bear risk as their core business - but nevertheless, they should come up with more innovative solutions than passing the cost on to their customers.

 

But hey, there's open competition, so if one company isn't giving us the price we want, we can move to another. There are tons of car insurance companies around - all we need to do is find one.

 

 

[Stary]

Unfortunately in this economic crisis, most companies would prefer to be prudent, what more companies that bear risk as their core business - but nevertheless, they should come up with more innovative solutions than passing the cost on to their customers.

 

But hey, there's open competition, so if one company isn't giving us the price we want, we can move to another. There are tons of car insurance companies around - all we need to do is find one.

 

yeah, but if all also jack up price, which I believe they will, then what is the difference anyway?

 

This is crap. And during economic crisis, many people will file funny claims just to get some money.

 

But I guess this is inevitable. The reason being that most of our drivers are from the baby boomers generation and they are all around late 40s to early 60s now. At these age, accident rate will be definitely higher.

 

No choice. And I believe accident rate will go up higher and higher every year until most of these baby boomers died off.

[Ronnchee]

See, cheap COE, many young, irresponsible punks can afford to own a car, and anyhow dirve, accidents here and there, cause the premium of motor insurance to raise.

 

Who to blame, the gahment lah.

[Jascyt]

There are too many damn cars on the road, leading to more accidents. Simple as that. Make it cheaper for people to own cars, more money into the gahmen's coffers, more cars on the roads, more accidents.

[Turbine]

This is a totally idiotic statistic. not to forget more cars on the road = more insurance policy, there is not valid reason to raise the insurance.

Edited March 13, 2009 by Turbine

[Twnll]

See, cheap COE, many young, irresponsible punks can afford to own a car, and anyhow dirve, accidents here and there, cause the premium of motor insurance to raise.

 

Who to blame, the gahment lah.

 

 

Insurance company works on statistics so I suppose the age group with the most claims will see their renewal premiums rises accordingly.

 

[Tjkbeluga]

Yes, driving is getting more and more unpleasant here... Even at so call offpeak period, I drive to work at about 6:20 am in the morning. For the past 2 days, there was accident at BKE 2 days in a row. I try to go back at around 7:20 pm and also damn horrible jam near BKE and now seems worse as the jam is now starting from before Steven Road exit. Also, whenever there is rain, big or small, almost sure got accident somewhere one... WTF....

[Parkingidiot]

Mr Pui Phusangmook, the GIA's motor convenor, said many insurers are facing 'multiple injury claims', many of which are suspicious. He cited the example of an accident that resulted in minor dents on the bumper of an old Japanese car. But its driver and four passengers filed injury claims exceeding $40,000. 'Their medical reports were from a family clinic, and were almost identical,' he said. 'Only the names were changed.'"

 

 

The gahmen is not taking action even when the GIA themselves say there is suspicious activity. What's the point of having all these authorities and paper-CASE tigers when the insurance companies blatantly fleece the public and the gahmen sits around twiddling their thumbs, and politicians and civil servants getting world's highest salaries to go to paris and learn cooking. They keep saying it's to prevent corruption - but here is corruption happening under their very noses, and even when people point it out to them - nothing gets done.

 

[Babyckh]

But I guess this is inevitable. The reason being that most of our drivers are from the baby boomers generation and they are all around late 40s to early 60s now. At these age, accident rate will be definitely higher.

 

No choice. And I believe accident rate will go up higher and higher every year until most of these baby boomers died off.

 

 

What are you talking about? You wanna start a flame war between the young punks and the elderly drivers?

 

Don't curse these baby boomers. as you put it, because 1 day u'll get old as well.

 

[Stary]

seems like the game here is this

 

more cars on the road (stimulate economy)--> more accidents---> more clains-->more jobs for workshop(stimulate economy)---> more insurance premium(stimulate economy).

 

So as you can see, the game is to bring out your savings to stimulate economy because it's no good for the economy if you just keep your money in the bank.

[Kb27]

The gahmen is not taking action even when the GIA themselves say there is suspicious activity. What's the point of having all these authorities and paper-CASE tigers when the insurance companies blatantly fleece the public and the gahmen sits around twiddling their thumbs, and politicians and civil servants getting world's highest salaries to go to paris and learn cooking. They keep saying it's to prevent corruption - but here is corruption happening under their very noses, and even when people point it out to them - nothing gets done.

 

As long as you don't cheat the gahmen, it's ok.

If you cheat the gahmen even 1 cent, they come down on you like a rock.

[Route88]

Mine already rised up to $200+ from prev year. Wat to do? LLPL

 

Car owners kena shoot left,front,back right

 

 

[Stary]

What are you talking about? You wanna start a flame war between the young punks and the elderly drivers?

 

Don't curse these baby boomers. as you put it, because 1 day u'll get old as well.

 

Nope...not starting a flame war. Just stating that accident rates has to do with demographics. True there are young punks, but their amount is small compare to the baby boomers generation.

 

Why is the current economy dropping? Also has to do with demographics. A person peak spending is around the age of 48-52 and after that they saved for retirement. The baby boomer generation is what kept the economy, technology and stock market raging for the last 40 years. Time has come for this group of people to retire and save, and this is exactly also what happen to Japan in 1990 because their population is about 10-15 years older than the rest of the world and so they got their "depression" earlier. Honestly, Japan never recovered from their 1990 recession.

 

Coming back to accidents, it is the same. A lot of baby boomers on the road who can afford cars. At the age of late 40s to 60s, it is natural that their focus and concentration is not as strong as younger generations. So a higher accident rate would occur. The only way to solve this is either slowly wait for the baby boomer generation to die off, or restrict the number of cars on the road.