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.

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