Motor insurer AIG stops insuring McLarens driven to Malaysia

[kobayashiGT]

Source: https://www.straitstimes.com/singapore/transport/motor-insurer-aig-stops-insuring-mclarens-driven-to-malaysia

SINGAPORE – In a rare move, motor insurer AIG has decided not to insure McLaren sports cars when they are driven across the Causeway.

The move comes after a recent crash in Johor involving three McLarens when a group of the British sports cars was heading south towards Kluang on Oct 29, 2023. No one was injured in the incident.

In a correspondence to an insurance broker, AIG said its decision came on the back of “an exceptional increase in frequency of severe accidents involving McLaren vehicles in Malaysia”.

From April 1, 2024, the insurer said it will not be liable for losses arising from accidents occurring outside Singapore.

AIG declined to comment when contacted by The Straits Times.

The move came as a shock to McLaren owners. Mr Marcus Luah, who was among the trio involved in the Johor crash, said: “I don’t understand why McLaren is being singled out. There have been many past crashes in Malaysia involving other brands. So I’m a bit puzzled.”

Mr Luah, 32, a property agent, said AIG has quoted him a premium that is “five times” that of his current one for policy renewal. “Obviously, I am not going to go back to them. I can understand if it is two times, but five times!”

Insurance broker Eazy, which specialises in insurance for high-end cars, indicated that the stand by AIG was rare but not unheard of.

“It’s not uncommon for cars which cost more than $3 million,” said Eazy chief executive Douglas Chia. “But it’s less common for cars below that price range.”

Prices for the latest McLaren model – the 750S – range between $1.5 million and $1.6 million with certificate of entitlement.

Mr Chia said the annual premium for a car like the McLaren Artura ranges between $6,000 and $10,000 for a regular driver with a 50 per cent no-claim discount.

“We’re sourcing for alternatives for our customers,” he added.

Mr Chong Kah Wei, managing director for McLaren at multi-brand dealership Eurokars, said: “This is a hard call by AIG. They are doing this for their own interest. But we have other insurance partners like Liberty.

“We are working to transition some customers over to Liberty, so that they are taken care of. Meanwhile, we are in talks with AIG to see how we can lessen the impact on existing customers.”

When approached, the General Insurance Association of Singapore (GIA) said it does not comment on the practices of individual members. “This is a matter of each insurer’s risk acceptance,” said GIA chief executive Ho Kai Weng.

Lawyer Chia Boon Teck, a co-managing partner at law firm Chia Wong, said: “When the insurance policy is up for renewal, the insurer is entitled not to cover Malaysian drives. But I don’t think the insurer can unilaterally do this midstream of the insurance policy – unless the policy allows the insurer to do so.”

Not all spectacular crashes involving McLarens take place in Malaysia.

On May 21, 2023, the driver of a McLaren was arrested after his vehicle crashed in Keppel Road. The police said the 43-year-old male driver was arrested for failing to render assistance. His passenger, a 28-year-old woman, was left alone in the wreck at the scene.

According to Land Transport Authority statistics, there are around 200 McLarens in Singapore.

[Lala81]

Just how the rich people network. 

[Vratenza]

32yr old, property agent owns a McLaren...

At that age, I was still driving my Japanese B&B...

I am in the wrong profession...😒

[inlinesix]

It is rare that insurer change terms & conditions for in-force policies.

If it can happen to McLaren, it means that it can happen to anybody.

[Kb27]

Obviously, McLaren have lousy drivers.

[ER-3682]

On 3/25/2024 at 11:54 AM, Kb27 said:

Obviously, McLaren have lousy drivers.

Good Drivers drive Ferrari & Lamborghini.?

[Jamesc]

Can try Budget Indirect!

[Kb27]

On 3/25/2024 at 12:03 PM, ER-3682 said:

Good Drivers drive Ferrari & Lamborghini.?

AIG runs a business. It sees expensive claims coming from high risk cars in MY... oh.. it's another McLaren.

Even if they keep raising their premium, it's not enough. So there you go... cancel them.

 

[ER-3682]

On 3/25/2024 at 12:36 PM, Kb27 said:

AIG runs a business. It sees expensive claims coming from high risk cars in MY... oh.. it's another McLaren.

Even if they keep raising their premium, it's not enough. So there you go... cancel them.

 

Modern Times,doing Insurance Business,no more making huge Money,look at Travel Insurance you know,so many Claims,also in Western Countries,so many Disasters..1 Hurricane claimed Hundrens of Millions.

[ER-3682]

Even Medical Insurance also the same,1 Cancer Case if the Patient live for 5 Years,the Medications already at least $500,000.00...not inc Operations.

[ER-3682]

In my View,Supercars the best only can buy 3rd Party Insurance...Case Close..then the Drivers will drive safely.

[PSP415]

On 3/25/2024 at 12:36 PM, Kb27 said:

AIG runs a business. It sees expensive claims coming from high risk cars in MY... oh.. it's another McLaren.

Even if they keep raising their premium, it's not enough. So there you go... cancel them.

 

Crash n still get substantial insurance payout, just nice to down for next purchase, why not. 

Think more like an easy way to change car. Thus far, no one's hurt or seriously injured in any of the cited incidents. And happened in Boleh land. Unlike here, got lots of CCTV and not so easy to whack at such speed too. 

AIG probably wised up and press calculator more to find it's not worth the premium. Though I wonder if most of the rides are less than 3 years old. 

Other insurers? If they can close up terms in insurance coverage and payout amount is minimal, dun think many will be eager to stand in. 

I not sure these are lousy drivers but somewhat bring a bad taste to the mouth. 

Yada-ing. Stay safe all. 

Cheers 

[Achtung]

On 3/25/2024 at 11:54 AM, Kb27 said:

Obviously, McLaren have lousy drivers.

U mean chew cheng

[Mkl22]

On 3/25/2024 at 12:56 PM, PSP415 said:

Crash n still get substantial insurance payout, just nice to down for next purchase, why not. 

Think more like an easy way to change car. Thus far, no one's hurt or seriously injured in any of the cited incidents. And happened in Boleh land. Unlike here, got lots of CCTV and not so easy to whack at such speed too. 

AIG probably wised up and press calculator more to find it's not worth the premium. Though I wonder if most of the rides are less than 3 years old. 

Other insurers? If they can close up terms in insurance coverage and payout amount is minimal, dun think many will be eager to stand in. 

I not sure these are lousy drivers but somewhat bring a bad taste to the mouth. 

Yada-ing. Stay safe all. 

Cheers 

or maybe the only way to get rid of British trash... is to crash!

[ER-3682]

On 3/25/2024 at 1:44 PM, Mkl22 said:

or maybe the only way to get rid of British trash... is to crash!

Noooo...don't Crash..give it to me or you.

[Inlinefour]

On 3/25/2024 at 12:24 PM, Jamesc said:

Can try Budget Indirect!

inDirectAsia can Bo 😆😆😆

[inlinesix]

On 3/25/2024 at 12:49 PM, ER-3682 said:

Modern Times,doing Insurance Business,no more making huge Money,look at Travel Insurance you know,so many Claims,also in Western Countries,so many Disasters..1 Hurricane claimed Hundrens of Millions.

Travel insurance is profitable due to large number of policies plus no commission.

 

[ER-3682]

Just 3rd Party is the best Option,Car need to fully paid...Crash,Accident...Self Pay...with a Min $5,000.00 Premium..