Here is a new type of motor insurance scams that target motorists - and not the insurance companies.
Mr X's car was hit by a van. He reported to an reporting centre. An agent of the workshop approached him and told him that the workshop can handle his third party claim - so that he does not need to lose his No Claim Bonus. Mr. X agreed and sign a few forms given by the workshop.
Six months later, the workshop told him that they could not proceed with the third party claim as the other party had a witness that Mr. X had turned into is lane. The workshop asked Mr. X to pay for the repairs at about twice of the estimated cost. If Mr. X did not pay, the workshop would get a lawyer to sue him. It seemed that the forms signed by Mr. X gave this legal right to the workshop.
Mr. X approached his insurance company to handle the claim, but the insurance company refused - as Mr. X did not meet the policy condition of getting his own insurance company to handle the repair in the first place.
Mr. X is now in a dilemma - having to pay for a claim that should be covered by the insurance policy and now having to pay for twice of the actual cost. Mr. X suspected that the workshop was acting fraudulently and was targeting him in the first place.
Lesson - always leave it to your insurance company to handle the repairs. Do not try to save on your No Claim Discount. It is not worth the unexpected trouble.
Mr X's car was hit by a van. He reported to an reporting centre. An agent of the workshop approached him and told him that the workshop can handle his third party claim - so that he does not need to lose his No Claim Bonus. Mr. X agreed and sign a few forms given by the workshop.
Six months later, the workshop told him that they could not proceed with the third party claim as the other party had a witness that Mr. X had turned into is lane. The workshop asked Mr. X to pay for the repairs at about twice of the estimated cost. If Mr. X did not pay, the workshop would get a lawyer to sue him. It seemed that the forms signed by Mr. X gave this legal right to the workshop.
Mr. X approached his insurance company to handle the claim, but the insurance company refused - as Mr. X did not meet the policy condition of getting his own insurance company to handle the repair in the first place.
Mr. X is now in a dilemma - having to pay for a claim that should be covered by the insurance policy and now having to pay for twice of the actual cost. Mr. X suspected that the workshop was acting fraudulently and was targeting him in the first place.
Lesson - always leave it to your insurance company to handle the repairs. Do not try to save on your No Claim Discount. It is not worth the unexpected trouble.
5 comments:
Dear Mr Tan
Thank you for your public service effort. Please correct me if I am wrong.
It seems that all law abiding citizens should keep their insurance company informed, in writing, of any traffic incidents (minor or major), as soon as possible.
And not fear losing their NCB.
The assumption being that the insurance company will make the effort to guide the policy holder on the steps needed to protect himself against legal claims and to reduce repair costs. Both the policy holder and the insurance company share the same common interest.
I'm just wondering if it's safe for us to make such an assumption?
Thanks in advance for any guidance on this matter.
Reply to 11:27 AM. Yes, that is the correct approach. Trust your insurance company and work with them. If they do not take care of their customer or treat the customer fairly, you should change to another insurance company or lodge a complaint with FIDREC or MAS.
Dear Mr Tan
Thank you very much for your guidance to my question @ 11.27am
Yes you are right we should leave it on our insurance company to handle the repairs.
Thanks for the informative article! waiting for your next post.- best critical illness insurance singapore
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