New motor insurance policy for senior above 65 years old

Auto­mobile Asso­ci­ation of Singa­pore (AAS) launched a new motor insur­ance policy , “AA Seni­or Motor Plus”, on 23 Janu­ary 2014. It is tar­geted at drivers aged 65 and above. It was launched in col­lab­or­a­tion with Liberty Insur­ance and the Singa­pore Opto­met­ric Asso­ci­ation.

It comes with bene­fits such as a 5 per cent dis­count for eli­gible poli­cy­hold­ers with 30 or more years of exper­i­ence, and a free med­ic­al exam­in­a­tion, required of drivers above 65 years old by the Traffic Police. Like any oth­er car insur­ance policies, driv­ing records and claims exper­i­ence will be taken into con­sid­er­a­tion when set­ting the premi­um.  Poli­cy­hold­er would need to pay for stand­ard excess and it cov­ers driv­ing in both Singa­pore and West Malay­sia.


Cur­rently, NTUC Income offers motor insur­ance for drivers above 65. At Aviva and, only renew­al of policies for those above 70 are con­sidered on a case-by-case basis.

There­fore, seni­or drivers now have one more choice from AAS.

Changes to Third-party motor claims

With effect from 1 May 2011, claimants who intend to file third-party claim for the dam­age to their vehicles must inform the poten­tial defend­ants or their insurers before the com­mence­ment of the repair. The insurers will then have 48 hours (exclud­ing Sat­urday, Sunday and Pub­lic Hol­i­day) to per­form the pre-repair inspec­tion. The Sub Courts can impose sanc­tions on the claimants if claimants fail to noti­fy the poten­tial defend­ants or do not allow the pre-repair inspec­tion to be car­ried out.

If the poten­tial defendant’s insurer has how­ever, waived the require­ment for the pre-repair inspec­tion, the claimants may pro­ceed with the repairs. The poten­tial defend­ant or his insurer will also have to com­pensate the claimant for loss of use of the vehicle for the peri­od of the pre-repair inspec­tion. 

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More Motor accident disputes to be resolved faster

The Gen­er­al Insur­ace Asso­ci­ation of Singaore (GIA) has just announced that non-injury motor acci­dents will be heard at Fin­an­cial Industry Dis­putes Res­ol­u­tion Centre (Fidrec) for claims up to $3,000, up from the cur­rent $1,000. This will def­in­itely speed up the claim pro­cess instead of being heard at court.

GIA may also legis­late inspec­tions for non-injury cases before the vehicle is repaired and also to register motor survery­ors. These two meas­ures could help to drive down the high incid­ence of inflated and frad­u­lent motor claims.

Let’s hope the motor insur­ance premi­um will be sta­bil­ize and even decrease in the near future with all these meas­ures being imple­men­ted.

Insurance Relief for Motorists

Finally, motor­ist can expect either no or mar­gin­al increase in the car insur­ance premi­um this year. Gen­er­al Insur­ance Asso­ci­ation of SInga­pore (GIA) announced on 17 Mar 2010 that the industry losses nar­rowed sharply from $214 mil­lion in 2008 to $44.5 mil­lion last year . This is prob­ably due to high­er premi­um col­lec­ted last year and the pos­it­ive res­ult from the New Motor Claims Frame­work intro­duced  in June 2008. The frame­work requires motor­ists to report acci­dents — even minor ones — with­in 24 hours, and to sup­ple­ment these reports with pho­to­graphs.

New Insurance Domination Framework

With effect from 1 Septem­ber 2009, all insur­ance com­pan­ies will fol­low the new insur­ance nom­in­a­tion frame­work, includ­ing insur­ance cooper­at­ive giant, NTUC Income.

NTUC Income, being a cooper­at­ive, had its own Sec­tion 45 of the Co-oper­at­ive Soci­et­ies Act (CSA) to gov­ern the revoc­able nom­in­a­tion of bene­fi­ciar­ies before 1 Septem­ber 2009. In the past, the com­mer­cial insur­ance industry has two prob­lems for nom­in­at­ing bene­fi­ciar­ies for their insur­ance policies bought.

Firstly, when the poli­cy­hold­er has nom­in­ated the spouse and/or chil­dren as the bene­fi­ciar­ies, Sec­tion 73 of the Con­vey­an­cing and Law of Prop­erty Act (“CLPA”) and Law of Prop­erty Act (“CLPA”) will auto­mat­ic­ally cre­ate a stat­utory trust in favour of the bene­fi­ciar­ies.

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Motor Insurance Set to Cost More

Yes, it is true! Though the Motor Report­ing Frame­work was imple­men­ted in mid last year to con­trol the motor premi­um increase, the res­ult is yet to be seen and felt.

The main cul­prit is the two-fold increase in the injury claims arising from road acci­dents. There were 17% more acci­dents last year, res­ult­ing in 473 of scrapes per day. The motor industry has lost a record $214.1 mil­lion in 2008, up from $103.2 mil­lion in 2007. Claims paid out hit $742 mil­lion, up from $582 mil­lion in 2007. All three major motor insurers, NTUC Income, AIG and AXA, will increase the premi­um sub­stan­tially this year.

How­ever, one good sign is that the claims amount was down from $200.7 mil­lion in the third quarter to $172.7 mil­lion in the fourth quarter of 2008. Motor­ist should expect to see the res­ult of new Motor Report­ing Frame­work to work in, hope­fully, half  to one year’s time.

Go Travelling with Peace of Mind

Many people buy travel insur­ance only one or two days before depar­ture. But do you know that it should be bought once you made pay­ment for your trip! Why so? Travel Insur­ance cov­ers risks asso­ci­ated with pre-depar­ture events such tour agency’s bank­ruptcy, you or your fam­ily mem­bers fell sick and hence can­not pro­ceed with the travel. Travel insur­ance will cov­er the loss of non-refund­able depos­its or oth­er charges paid in advance.

Anoth­er import­ant thing to note is to take down the SOS num­ber and your policy num­ber so that you can call for assist­ance should evac­u­ation is required. You are advised to read through the policy doc­u­ment to know what kind of proof of doc­u­ments for oth­er minor claims such as delayed or dam­aged or lost bag­gage, flight delay etc.

Car Premium Likely to Increase

Car premi­um looks to increase after 2 con­sec­ut­ive quar­ters of bad claim exper­i­ence by the insurers. Rises may be 5% or 10%, accord­ing to NTUC Income spokes­man. After exper­i­en­cing two years of profits by the insurers from 2005–2006, first half of 2007 saw a defi­cit of $42 mil­lion, accord­ing to Gen­er­al Insur­ance Asso­ci­ation of Singa­pore.

So car own­er, brace yourselves for a high­er premi­um in your next renew­al of motor insur­ance. NTUC Income and AIG, who have a mar­ket share of 48% of motor insur­ance, will likely to increase the premi­um to com­pensate for the losses.

Report Your Motor Accident within 24 Hours to Insurer else…

From 1 June 08, all motor acci­dents have to be repor­ted to the insur­ance com­pany with­in 24 hours of occur­rence or by next work­ing day. The insurers will do the rest, from arran­ging for a replace­ment vehicle to mak­ing third-party claims. Should you fail to report promptly to your insurer, your claims may be pre­ju­diced or even declined by your insurer. There is a pen­alty of deduc­tion of 10% on the No Claim Dis­count (NCD) upon renew­al of your policy. Even if you are new driver with no NCD giv­en, you may not be awar­ded NCD in the sub­sequent years.

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