Cancellation of policy

Cancellation of policy

taken from moneySENSE

Mr Muthu Krishnasamy bought a motor insurance policy for his three-year old car from an insurance company. Before his policy was due for renewal, Mr Krishnasamy received a written notice from the insurance company that his policy would be cancelled. No explanation for the cancellation was provided. Mr Krishnasamy had made two consecutive insurance claims in the last six months amounting to $21,000 and $38,000. He felt that it was unfair for the insurance company to cancel his policy due to these claims. The insurance company explained to Mr Krishnasamy that one of the conditions in his insurance contract gave the company the right to cancel the policy by giving the policyholder written notice of seven days.

MoneySENSE tips for consumers

* Both you and your insurance company have the right to cancel the motor insurance policy for any reason by giving written notice of seven days to the other party. Insurance companies can decide not to renew a policy after a major accident claim. These are business decisions of the insurance company.
* If your insurance company cancels the policy, it will refund you the unused proportion of the premium. Some insurance companies refund the premium on a pro-rata basis with the deduction of a small administration fee. Others use a method that calculates what would have been charged if your policy were a short-term policy. This usually applies if the cancellation is at your request. You should check with your insurance company how it calculates policy refunds.
* Note that refunds may be subject to a minimum amount, and that your insurance company may reserve the right not to refund any premium if a successful claim has been made on the policy.
* Make sure you check carefully and understand what the policy covers before you buy the policy.

Common FAQ for car renting companies

What are the requirements of renting a car?
Driver must be above 21 years of age and posses a valid Singapore Class 3 driver's license and original Singapore Identity Card.

What does the car rental rate cover?
Rates covers rental of vehicle on a 24 hour basis. Example: If the car was collected at 12pm today, it has to be return at 12pm the next day.

What if I need to extend the rental period?
The hirer will have to inform the car rental company of such intention immediately.

What if I am unable to return the car on time?
It is the hirer's responsibility to inform the car rental company should he/she is not able to return the car on time. Every excess hour will be charged at percentage of the agreed rental rate. However it is up to the car rental company discretion to accept the delay.

Do I need to refill the petrol tank?
The hirer should refill the petrol tank to the same level as when he/she collected the vehicle. If the tank is not refuel to the same level, the cost of petrol will be levied.

Can I drive the vehicle to Malaysia?
Yes, some car rental companies do provide models available for Malaysia usage.

What if the vehicle is involved in an accident?
The hirer must report all accidents to the car rental company immediately. Should there be any bodily injuries, the hirer must report to the respective authorities after informing the car rental company

What if the vehicle breaks down?
The hirer must report all vehicle breakdowns to the car rental company immediately.

What if I receive a parking fine?
The hirer will be responsible for all parking and traffic violations.

What are the forms of payment for the rental?
Most car rental companies accept payment in the form of cash / NETS / VISA / MASTERCARD.

Motor Claims Procedures

Motor Claims Procedures
The new Motor Claims Framework (MCF) introduced by the General Insurance Association of Singapore simplifies making motor claims for all users in Singapore.


In an accident, here are the 4 simple steps you can follow:
Get Information
o Exchange particulars of involved parties including Name, NRIC/FIN number, Phone number, Address & Insurance Company

o Take note of the vehicle numbers
o Take digital photographs of all involved 3rd party vehicles & the accident scene

Call Our HotlineCall our 24 hour hotline XXX for a tow truck or for further advise on the accident
Report & Deliver Vehicle Report and bring your accident vehicle (whether damaged or not) to one of your approved authorized workshops/reporting centres within 24 hours or by the next working day

Lodge Police Report Lodge a police report for the following motor accident cases
o Injury
o Non-injury involving a government property
o Non-injury involving a pedestrian or cyclist
o Any accident outside Singapore

REMEMBER
All accidents must be reported to your insurer within 24 hours or by the next working day with your accident vehicle, no matter how trivial or even if there is no visible damage, and irrespective of whether you are claiming from any insurers or third parties.
When an insured reports an accident to the insurance company, and if the facts and circumstances seem to suggest that the insured driver is likely to be at least partly responsible for the accident, a claim reserve is created in anticipation of a claim to be filed by the third party or the policyholder himself.

All insurance companies in Singapore use a guide called the Barometer of Liability Agreement (BOLA) to determine how much each party is liable in an accident. BOLA is designed to expedite up claims processing. It does not diminish your right to contest liability under the law. Under BOLA, your NCD will not be affected if your liability is 20% or less in an accident involving an identified vehicle. In all other cases, your NCD may be affected. The amount of claim that is lodged or likely to be lodged does not affect the proportion by which the NCD will decrease.

You should always notify your insurer of any accidents in which you are involved, even if you are not claiming under your own policy. By doing so, you are fulfilling the policy condition requiring you to inform your insurer of any possible claims arising from your policy as soon as possible. Your insurer will thus have a record of the accident, so that if the third party decides to pursue a claim against you, your policy will respond.

Under the policy contract, you should avoid entering into private settlements with third parties as this may affect your insurer’s subrogation rights. Entering into a private settlement is equivalent to admitting liability on behalf of your insurer, This is in breach of a policy condition. Therefore, if the third party decided to pursue a claim against you despite the private settlement, your policy would not respond.

Importing a car into Singapore

Pros

-Wide range of models available
- Savings up to S$ 20,000
-Shorter delivery times
-Car must pass a mechanical inspection
-Car may not be suitable for tropical climate

Cons

-Car must be a right hand drive vehicle
-Car must use unleaded petrol
-Car must use CFC-free air conditioners
-Car must pass a mechanical inspection
-Car must not be older than 3 years
-Car may not be suitable for tropical climate
-Workshops may not stock spare parts
-Workshops of distributors may not repair car


Checklist for Car Import
1)Check technical and safety requirements for Singapore
2)De-register your car at home country
3)Get Cargo-Clearance permit
4)Assess OMV (Open Market Value)
5)Pay Custom Duty
6)Have car inspected at authorized centers
7)Bid for COE (Certificate of Entitlement)
8)Register car with LTA (Land Transport Authority)