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By Christopher Tan
A FEW months ago, a colleague lost control of his car and almost ended up in a ditch. He was trying to avoid a taxi that had swerved suddenly into his path to pick up a fare.
My colleague's insurer has since paid for the repairs, and did not cut his no-claims discount, largely because there were witnesses who corroborated his account of the potentially fatal incident.
However, my colleague is adamant that the taxi's insurer should provide full compensation, and he is pursuing this through a lawyer.
Every so often, I would receive mail from readers who have had minor accidents, which end up with the other party filing exaggerated claims. I can feel the frustration in their words.
So, it is comforting to learn that the General Insurance Association (GIA) is setting up a high-tech database to keep track of bad drivers.
These include drivers who meet with accidents frequently, drivers who have made inflated or fraudulent claims in the past, and drivers who refuse to cooperate with accident investigations.
The database, which should be up in about a year's time, is expected to work like the credit bureau which banks and other financial institutions tap into when checking the creditworthiness of a potential client.
Insurers in the United States, Britain and other parts of Europe have such systems in place to help them manage their exposure to risk.
It will also help to keep premium costs down for the majority of good and honest drivers. Bad and dishonest drivers can expect their premiums to soar and, in the worst-case scenario, even find themselves uninsurable.
This stance may seem a tad draconian to some, but it is the right approach.
Decent drivers have had to bear the cost burden of folks with a poor regard for safety - and a low degree of integrity to match - for too long. The database will allow insurers to take targeted action against these parties.
Together with the demerit point system the Traffic Police have in place, it will hopefully bring about better driving and roads that are safer for all.
It would be a bonus if it could also put a lid on exaggerated claims - maybe $5,000 for a slightly scratched bumper, or $50,000 for a medically unsubstantiated whiplash injury.
Hopefully, the GIA will be transparent in the way it decides who makes it to the roll of dishonour. And whether the information in the database differentiates between motorists who are habitually getting into accidents, and those who have suffered a stroke of bad luck (for example, 20 years of a clean record prior to two accidents in the past year).
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On average, drivers here get into an accident once every five years. So, if you're involved in more than one crash in five years, will you be blacklisted automatically? Will every accident you meet with haunt you? Or only those in which you have been found to be more than 50 per cent at fault?
Methinks honest drivers need not worry too much. The GIA's top priority, after all, is to weed out the fraudsters.
On my part, I have decided to install a video surveillance system in my car. It will not only provide irrefutable evidence that will come in handy the next time I need to make an insurance claim, but it is also a supplementary security device for the home (as the vehicle is parked in my porch).
myp@sph.com.sg
The writer is the contributing editor of Torque magazine by SPH Magazines. This month's issue is on sale.
For more my paper stories click here.
 
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