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Motor Insurance Set to Cost More

Friday, 13 March 2009 08:00 Ginny Lim
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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.

 

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Newsflash

NTUC Income pay out $415.5m bonus to policyholders , 30 Apr 2010

Insurer NTUC Income are pleased to declare an additional special anniversary bonus to complement your annual bonus. As well as a cash bonus1 for our long-standing policyholders.

Once again, NTUC Income has resolutely published thier yields for one reason – to be transparent.

 Actual Yield: Endowment

Policy Term For males & females, entry age: 25 years old, S$100 monthly premium2
Maturing in 2010 Average Maturity Yield (2006 - 2010)
20 5.47% 5.88%
25 5.95% 6.03%
30 5.90% 5.92%


Actual Yield: Whole Life

Gender Entry age: 30 years old with Sum Assured of S$50,000
At age 55 in 2010 Average Yield (2006 - 2010)
Male 4.72% 4.72%
Female 5.41% 5.41%

1 This cash bonus is paid out on your oldest policy, which must have been in force for at least 10 years as at 31 December 2009. If you are residing overseas, or if the policy has been placed under a trust or is under the care of the Official Assignee, this cash bonus will be credited to your policy to offset future premium payments; or if no premiums are payable, the cash bonus will be paid out when the policy matures, is surrendered or if a claim is made. This cash bonus is not included in the calculations for actual yield.

2 Yields are calculated based on annual premium equivalent to S$100 monthly. Yield calculations are audited by Towers Watson. Actual yields may not be indicative of future policy yields.
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