Insurance is just a grand scam
Ever since I have gotten myself a car, I have been frequenting local car forums to gain more knowledge. There's a lot of info to gain from these forums, like steps to do in the event of accidents or technical know how of a car. Also, stupidities on the road are frequently highlighted as well. It can make good read and really helps in my driving in that, I bear those stupidities in mind and make sure I don't make the same mistake.
This particular accident caught my attention and it sort of reinforces my opinion about local vehicle insurance. The thread can be found here. The story goes like this. A Nissan GTR was waiting at a traffic light junction when this Toyota Vios came head up and crash into it. Point to note is that the GTR was completely stationary when this Vios came crashing head on. It was later discovered that the driver of the Vios was heavily intoxicated with alcohol which effectively lead to his disoriented driving and crashing into the GTR waiting at the traffic light controlled junction.
As a result of the impact, the airbag was released and the driver of the GTR suffered injuries to his fingers and chest. The GTR was badly mangled. Initial estimate on the cost of repair for the GTR works out to be $70k. It will most likely breach the $100k mark after factoring in the labour cost.
The drunk driver was arrested on the spot and subsequently charge in court. He was fined $4k and given a suspension of 2 years. No jail term. His motor insurer is discharging liability for all related claims since he was convicted of drink driving. Now the driver and owner of the GTR is left stranded. Of course he has the options of claiming against his own motor insurer for the cost of repair but that will send his renewal (following year) premium into outer space or worst, his current insurer might just refuse the renewal.
From the discussion in the thread, it seems that the driver of the GTR will have to pursue legal proceedings with the drunk driver on his own in order to recover the cost of repair and not risk his own insurer.
Herein lies the disturbing trend. Motor insurance companies are charging exorbitant premiums and yet does nothing to help the innocent insured. No doubt that insurer will pay out for the cost of repair but it is almost certain that when it comes to renewal, the premium will shoot through the ozone layer and into outer space or worst refuse renewal. Other insurer will most likely not take him for renewal as well.
So what is with the exorbitant premiums then? Going into the pockets of agents, directors, management in the form of fat bonus payout? What has the poor driver of the GTR done? Nothing except to wait for the traffic light to turn in his favour and move off. His insured is not going to chase after the drunk driver either because they know they can hold the GTR driver at ransom for his next renewal.
It is really frustrating for law obeying, considerate good drivers here in Singapore. These motor insurer will do anything to increase premium but does nothing to reward good law obeying drivers. And when it comes to claim, they will do just about anything reject claims or shrug their shoulders and pretend to be an idiot (like that of the GTR case) and will not assist their insured driver.
Drivers are like carrots to rabbits for insurers here in sg and we can't drive without one. At the end of the day, insurer laugh their way to the bank and good innocent drivers can only cry in vain.
hi brian - that was my GTR. thanks for spreading the word ... but i highly doubt anything can be done .. hell when i contacted the GIA here .. they didnt bother replying to any emails or questions, and when I called them, they gave me a runaround. Guess that's whats happening with our tax dollars. i hope to get my car back a month from now (so its been out of commission since 1st sep ..) .. if you're interested, the thread can be found on nagtroc and ill update it whenever i get my car back. cheers.
-kevin