Insurance question.

[Copen]

Let's say, guy A met with an accident with guy B, and it's guy B's fault. The accident caused guy A's car to be declared total loss by insurance company. But guy A still owe bank $40K and car valuation by insurance company at $30K. So guy A have to top up the balance despite being not his fault at all?

 

And if total loss, guy A's insurance will pay or guy B's?

[Bitx]

depends on how much A's liability is.

 

but i know one can nego with insurance company on market value. insurance companies will always underquote.

[Happily1986]

if there is an insurance payout already i don't see why the other guy is obliged to pay anything. thats assuming you are referring to guy b's insurer doing the payout.

 

just like when two parties enter into private settlement, err you won't ask the insurer for payout right?

[Copen]

If guy A's car total loss and due the reckless driving of guy B. And guy A still have liability with the bank higher that of market value. Guy A still need to top up the remaining amount to the bank?

 

What I heard is that, guy A will have to top up the remaining amount to the bank, since the insurer only payout market value or even lower for total loss case.

 

If that is really the case, what's insurance for? Having to pay for accident which isn't your fault at all?!

[Angelvine]

normally will be 80 or 90%... so the B insurance company will pay A insurance company 24-28k for the total loss... and A will only get 20k or so...

so the rest A will need to top up...

 

 

we buy insurance just for show... cannot claim...

i hit someone i pay the other party for the repair... and my own... all by myself... as long as below 5k-8k

 

anything higher then maybe use the insurance... cos if lower then 5k claim only... we will need to pay the insurance company back even more!!! cos they will up the price to sky high and u got to pay and pay... even change company also high high!!!!

 

 

so we pay insurance for nothing... accident we pay ourself... better then pay back 2x more to insurance...

 

 

[Angelvine]

fpr ts u can choose not to pay but unless u got lot of money...

 

use laywer to get A to pay... buy if A no money then u will loss more money!!!

 

[Copen]

Thanks for the input, so there's meaning we are having crappy law in Singapore? Guy A is my friend. He was going straight on a major road and Guy B just turn out from a minor road without stopping (got stop line), causing my friend's car to flip upon impact. It was a 70kmh road.

 

The insurance company haven't come out with a decision yet, so don't know if it is declared as total loss. So meaning if total loss, my friend still have to top up liability to bank when it's not his fault?! This is crappy! And seriously don't see a point of insurance. Something has to be done! Think a lot of car owners fake medical to claim more injury compensation to offset the losses, because insurance payout is not enough!

[Jman888]

limit of 70km/h mean not a major road or express way, can still flip??

 

there is always kuku driver out there, it was lucky that your friend is alive after the flip, what if he died? still going to worry about the insurance issue?

 

an accident is an accident, you can beat the guy at fault to half dead or take a civil suit against him.

 

Thanks for the input, so there's meaning we are having crappy law in Singapore? Guy A is my friend. He was going straight on a major road and Guy B just turn out from a minor road without stopping (got stop line), causing my friend's car to flip upon impact. It was a 70kmh road.

 

The insurance company haven't come out with a decision yet, so don't know if it is declared as total loss. So meaning if total loss, my friend still have to top up liability to bank when it's not his fault?! This is crappy! And seriously don't see a point of insurance. Something has to be done! Think a lot of car owners fake medical to claim more injury compensation to offset the losses, because insurance payout is not enough!

 

[Copen]

limit of 70km/h mean not a major road or express way, can still flip??

 

there is always kuku driver out there, it was lucky that your friend is alive after the flip, what if he died? still going to worry about the insurance issue?

 

an accident is an accident, you can beat the guy at fault to half dead or take a civil suit against him.

 

Yes bro, I believe it is the angle of impact (he tried to swerve and avoid, naturally human reaction) and 70kmh hitting a stationary object is enough to flip a car. So only a civil suit is possible right? Getting a complete payout from insurance company will not be possible?

[Wizzercool]

Thanks for the input, so there's meaning we are having crappy law in Singapore? Guy A is my friend. He was going straight on a major road and Guy B just turn out from a minor road without stopping (got stop line), causing my friend's car to flip upon impact. It was a 70kmh road.

 

The insurance company haven't come out with a decision yet, so don't know if it is declared as total loss. So meaning if total loss, my friend still have to top up liability to bank when it's not his fault?! This is crappy! And seriously don't see a point of insurance. Something has to be done! Think a lot of car owners fake medical to claim more injury compensation to offset the losses, because insurance payout is not enough!

 

The problem with the insurance is that the car is insured on market value and NOT the owner loan vaule. Just like personal insurance, we can insured the car based on a value that we want. Ofcourse if this value is more than the percieved market value of the car then the premium will be higher.

 

Conclusion, it is not the fault of the insurance company. The owner has chosen the way he want to insure his car and accepted the risks of shortfall due to total loss.

[Happily1986]

Yes bro, I believe it is the angle of impact (he tried to swerve and avoid, naturally human reaction) and 70kmh hitting a stationary object is enough to flip a car. So only a civil suit is possible right? Getting a complete payout from insurance company will not be possible?

 

your policy only covers the market value of the vehicle so the prevailing market conditions plus the cost assessment of the insurer applies. even if they pay you 100% of the market value, i believe that compared to outstanding bank loan balance, there will still be a shortfall.

[Copen]

Thanks for the input.

Conclusion: So my friend not only lose his beloved car due to a crappy driver, and he has to fork out money to pay off the bank himself.

 

What kind of law of insurance is this? Victim still have to pay. No wonder so many people wanna claim medical gao gao!