MOTOR INSURANCE

I AGREE with the arguments put forth in last Saturday's letter, "It's high time motor insurers put their house in order".

My car was involved in a very minor accident in December 2007, which resulted in scratches on the doors and bumpers of both cars. As the other driver insisted on making a report, I made mine at an independent damage assessment centre (Idac), with many photos taken of the car and all steps done according to my insurer NTUC Income's practice.

The damage was so minor that I needed no repair for my car. As the other car was of a cheaper make and older, and since it had suffered the same level of damage, I did not bother any further about it.

Imagine my shock when I received a lawyer's letter in March last year claiming more than $5,000 against me. I contacted NTUC Income and again went through the necessary steps of providing the statement. I told my insurer in writing that I totally disagreed with the claim and rejected it. In its reply, NTUC Income agreed with me on rejecting the claim. There was no further communication for the rest of the year, and I assumed things were going right.

But last month I was stunned when when my new insurance premium quotation arrived. The insurer had increased it from slightly over $400 to nearly $1,300. My no-claims discount (NCD) had been cut from 50 per cent to 20 per cent.

I contacted NTUC Income immediately. That was when I found out that my insurer had paid the claimed amount without a single communication or follow-up with me, the car owner.

Now I have to bear a more than 2 00 per cent increase in insurance premium and it will take years to earn back my 50 per cent NCD status. It looks like we car owners are at the mercy of ineffective insurers and errant lawyers.

Kevin Chua Hock Meng

Related links:
Why do I have to pay so much?

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