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.