Letter of Undertaking to insurance company

[Canisminor]

Have a query for bros here who reported minor accidents/ incidents to their insurers as required by the stupid new rules :

 

I understand that insurance cos. may ask for an undertaking letter to absolve them of any responsibility in exchange for not deducting your NCD.

 

If the accident was over 1 year ago and the insurer withheld NCD since then, can the insurer still demand such an undertaking letter now as a condition or should they just reinstate the NCD without any further conditions ? The insurer's rep himself admits that chances of claim are v low.

 

 

[Seaweed]

sorry...not an expert in insurance....and i hope i never get to used them....

 

but i am curious why NCD is witheld when there is no claim make yet....a report does not equal to a claim

[Leepee]

So is this the same way that taxi driver did in order to save his NCB and not pay anything to the other party?

 

Why would anyone wants to save ~$1000 in renewal premiums and also to save their NCB and in the end get into so much other unnecessary trouble?

Insurance suppose to reduce car owners troubles when it comes to accidents and claims, but uniquely singapore, the ins co are making so much excuses and giving car owners so much issues and headaches.

 

Penny wise pound foolish.

So is the ins co suggesting that next time small bumps or minor accidents, its better to aggravate the small incidents into bigger damages.

So that the car owner can justify having higher premiums and reduce NCB the next year? Seems like so from the various complaints I read.

 

 

[Unltd]

Have a query for bros here who reported minor accidents/ incidents to their insurers as required by the stupid new rules :

 

I understand that insurance cos. may ask for an undertaking letter to absolve them of any responsibility in exchange for not deducting your NCD.

 

If the accident was over 1 year ago and the insurer withheld NCD since then, can the insurer still demand such an undertaking letter now as a condition or should they just reinstate the NCD without any further conditions ? The insurer's rep himself admits that chances of claim are v low.

 

Uhmm.... I think under the laws of Singapore, it is yet to be determined if the letter to absolve them is considered legal because of the motoring laws that insurance has to cover for a certain period of time.

 

An illegal contract, term or condition will be considered null and void, so even if you sign the letter they are still accountable. I am not 100% sure, but if you really want to know the facts, you can check with your RTA lawyer.

[Ghostrider]

If you sign the letter of undertaking, then liability will be fully borne by you.

 

But do note...civil case the liability period can stretch up to 6 years. ie if your accident in Jan 2009...you sign letter of undertaking from insurance company, you will be liable from Jan 2009 to Jan 2015. If the other party files a claim against you during this period, you still have to fight for it.

 

Not worth the risk for a few hundred or even thousand saving in your insurance premium. Which if the insurance company is holding back your NCB due to a potential claim...they will refund the NCB & premium to you once the period is over. Eg....

 

Your old policy effective date....Jan 2008-Jan2009.

Incident on June 2008.

Your new policy Jan 2009 - Jan 2010 (minus 30% NCB)

If by June 2009 and the insurance company do not receive any 3rd party claims, they will refund the 30% NCB + excess premium to you.

 

My opinion is....bite the bullet and pay first...dun take the risk.

 

[Canisminor]

If you sign the letter of undertaking, then liability will be fully borne by you.

 

But do note...civil case the liability period can stretch up to 6 years. ie if your accident in Jan 2009...you sign letter of undertaking from insurance company, you will be liable from Jan 2009 to Jan 2015. If the other party files a claim against you during this period, you still have to fight for it.

 

Not worth the risk for a few hundred or even thousand saving in your insurance premium. Which if the insurance company is holding back your NCB due to a potential claim...they will refund the NCB & premium to you once the period is over. Eg....

 

Your old policy effective date....Jan 2008-Jan2009.

Incident on June 2008.

Your new policy Jan 2009 - Jan 2010 (minus 30% NCB)

If by June 2009 and the insurance company do not receive any 3rd party claims, they will refund the 30% NCB + excess premium to you.

 

My opinion is....bite the bullet and pay first...dun take the risk.

 

 

OK the situation is like this :

 

Orig NCD : 50%

Period of Insurance for Company A : Sep 2008 to Sep 2009.

Accident reported : Mar 2009.

Renewal of Insurance under Company B (better premium, but only 20% NCD left cos Company A withheld pending possible claim) : Sep 2009 to Sep 2010

 

So in Mar 2010 I am asking Company A to confirm if there is no claims from the date of accident in Mar 2009, to restore my NCD so that Company B will reinstate 50% NCD and refund the excess premium paid.

 

Company A confirms that there is no claim, but wants a letter of undertaking even though its over 1 yr from date of report.

 

Does this sound normal or just super kiasu of the company ?

[Booboon]

Have a query for bros here who reported minor accidents/ incidents to their insurers as required by the stupid new rules :

 

I understand that insurance cos. may ask for an undertaking letter to absolve them of any responsibility in exchange for not deducting your NCD.

 

If the accident was over 1 year ago and the insurer withheld NCD since then, can the insurer still demand such an undertaking letter now as a condition or should they just reinstate the NCD without any further conditions ? The insurer's rep himself admits that chances of claim are v low.

Let me guess. R&S?

[Ghostrider]

Its indeed stupid. Why need a letter of underwriting since its already a year old.

 

Want to play punk also can....renew with them lor....50% NCB back in the pocket liao....cancel the policy and renew with another company that provides a better quote.

 

Have you tried banging tables and flipping chairs ??? File a complain to GIA...I dun think they can withhold your NCB like dat.

 

 

[Baby39]

motor claims can still be done within the period of 6 yrs max. how did u resolve ur case tat time? a private settlement or wat? did u sign a black n white with the other driver? if there is, give it to them n they'll close the case. If not, then good luck liao, insurers hv the rights to hold ur ncd on the pretext of "possible claim" reserve.

 

Try talking to them n prove lor.

[Sci10213]

Insurers are required to maintain their solvency & report reserves to MAS who supervise them very closely (to avoid another Cosmic saga for those who remember what happened many years ago).

 

That's why almost all insurers have to deduct NCD & set up a reserve once you get into an accident (if they assess your liability is > 20%). A claim may not come in immediately or within 1 year, so insurers cannot wait till the claim comes in then they set up a reserve & deduct NCD - it is too late.

 

You can sign a letter of undertaking PROVIDED there is NO injury to anyone (other than yourself) because under the Motor Vehicles (Third Party Risks & Compensation Act), insurers are required to handle bodily injury claims submitted. Injury claims must be submitted within 03 years.

 

However, most insurers will keep the file in abeyance for 02 years & then close off if no claims come in.