Saturday, July 31, 2010
Residual market for motor insurance
Published in St Times
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
Financial sector and profits
The financial industry is making too much money at the expense of ordinary people. This article explains why you should invested in a low cost indexed fund, or an exchange traded fund, like the STI ETF. Don't pay high fees for actively managed mutual funds or unit trust. The average expense ratio in USA is 0.81%, which the article considered to be high. In Singapore, most funds have expense ratio of 2% to 3%. Imagine how much considers in Singapore are being charged !!!
Land banking
A month ago, a land banking company invited me to visit their office, so that they can educate me on the merits of their type of investment. I have always declined invitations to attend talks on land banking and would be reluctant to waste my time to be brainwashed, in the interest of education.
I replied that I would spend 2 hours if they make a donation of $1,000 to FISCA (Financial Services Consumer Association). I never heard from them again.
I replied that I would spend 2 hours if they make a donation of $1,000 to FISCA (Financial Services Consumer Association). I never heard from them again.
Singapore GDP
Read this article.
My view
In the past, Singaporeans rejoice when the economy performs well. The reaction now is quite different - people do not feel that the GDP growth has benefited them.
My view
In the past, Singaporeans rejoice when the economy performs well. The reaction now is quite different - people do not feel that the GDP growth has benefited them.
Pay a fee for advice
A reader sent 10 benefit illustrations from two insurance companies and asked me to analyse them, and recommend which plan offers the best value. I replied to ask if he is willing to donate $50 for each benefit illustration that I analyse. I never heard from him.
The insurance agent who sent prepared the computerized benefit illustration will earn a few hundred or thousand dollars from the consumer. The agent should be the person who spends the time to explain and guide the consumer to make the right choice. It would be unfair for the consumer to expect Mr. Tan to spend the time to read 10 benefit illustrations and give advice for free.
The insurance agent who sent prepared the computerized benefit illustration will earn a few hundred or thousand dollars from the consumer. The agent should be the person who spends the time to explain and guide the consumer to make the right choice. It would be unfair for the consumer to expect Mr. Tan to spend the time to read 10 benefit illustrations and give advice for free.
Late submission of motor claim
Hi Mr Tan,
Eight months ago, I was involved in a car accident with a van, causing damage to my front wheel. I repaired it for $1,500 in a auto workshop and submitted a claim against the insurer of the other party.
I just received a call from my insurer, telling me that the van is now making a claim against me for $3500.
1) Is it legal to make a claim after so many months? It is incredible to think that he is driving around for 8 months and suddenly needs repair done (and quite serious repair for a total sum of $3500).
2) I was told by my insurance company that my NCD will drop from 50% to 20% due to my claim against th other insurer. Why is this so? If claiming against the other party results in the loss of my NCD, then in every accident, shouldn't those involved just claim against their own insurer? They have nothing to gain by not claiming against their own insurance.
Jennifer
REPLY
1) The other party can make the claim late but you (or your insurer) can reject it. It is for them to prove the the damage were caused by you. You can deny that you were responsible for the damages. It would be difficult for the other party to prove that you caused the damages, after a lapse of 8 months. I hope that your insurance company will help you to reject this unjustified, late claim.
2) If you make a claim against the other party, your NCD will not be affected. Your NCD is affected only if you claim against your own insurance company, or you ask your insurance company to make the third party claim. The claims staff of your insurance company is giving you the wrong information. You should ask them give a reply to you in writing about this matter.
Eight months ago, I was involved in a car accident with a van, causing damage to my front wheel. I repaired it for $1,500 in a auto workshop and submitted a claim against the insurer of the other party.
I just received a call from my insurer, telling me that the van is now making a claim against me for $3500.
1) Is it legal to make a claim after so many months? It is incredible to think that he is driving around for 8 months and suddenly needs repair done (and quite serious repair for a total sum of $3500).
2) I was told by my insurance company that my NCD will drop from 50% to 20% due to my claim against th other insurer. Why is this so? If claiming against the other party results in the loss of my NCD, then in every accident, shouldn't those involved just claim against their own insurer? They have nothing to gain by not claiming against their own insurance.
Jennifer
REPLY
1) The other party can make the claim late but you (or your insurer) can reject it. It is for them to prove the the damage were caused by you. You can deny that you were responsible for the damages. It would be difficult for the other party to prove that you caused the damages, after a lapse of 8 months. I hope that your insurance company will help you to reject this unjustified, late claim.
2) If you make a claim against the other party, your NCD will not be affected. Your NCD is affected only if you claim against your own insurance company, or you ask your insurance company to make the third party claim. The claims staff of your insurance company is giving you the wrong information. You should ask them give a reply to you in writing about this matter.
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