Madam Phyllis Oh ('Insurance dilemma when repairs are costly'; July 10) found it difficult to obtain renewal of her client's motor insurance.
In America, there is a system of the 'residual market'. The purpose is to make insurance available without giving too much hassle to motorists who cannot get cover from the free market. The residual market is managed by an underwriter and the results are shared by all the licensed insurance companies.
I suggest the Monetary Authority of Singapore or the General Insurance Association consider the feasibility of introducing this concept in Singapore.
Tan Kin Lian
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