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Understand These 7 Terms Before You Shop For Car Insurance

23 June 2016 By admin Leave a Comment

car insurance

Next to your home and your office, your car is probably where you spend the greatest amount of time—and it’s likely one of the things you pour the most money into.

Between the costs of routine maintenance, repairs and trips to the pump (is it time to buy an electric car yet?), being a car owner requires an investment—not the least of which is the auto insurance you’re required to buy.

But not all policies are created equal—and, put simply, “Consumers need to understand the terminology of car insurance to shop for and compare policies and coverage,” says Jeff Blyskal, auto insurance expert and senior editor at Consumer Reports.

Although we can’t choose your auto insurance for you, we can help you learn some of the lingo you’ll come across during your search, in hopes that you’ll be able to understand what types of coverage exist and make the most-informed decision.

See full story at www.forbes.com

Which insurance covers are a must-have? Find out

21 June 2016 By admin Leave a Comment

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Vikas is 30 and about to start a family. He has been saving regularly to meet his goals of buying a house, going on a holiday abroad, retirement and the like. He bought life insurance with a sum assured of Rs 10 lakh when he started working seven years ago. He thinks he is sufficiently covered as he has his life cover and investments to fall back on if there is an emergency. Is he right in thinking that just topping up his life insurance policy now that a baby is on the way is enough?

Vikas is right in identifying and saving for his life goals. However, he has to be around to provide the funds needed to meet the goals. In case he dies early, the entire investment process would be derailed. His family will suffer loss of income, thereby putting long-term goals and the investments meant for meeting those goals at risk.

A pure term insurance policy is apt for meeting risks arising out of untimely death and therefore, should be adequate. It must be reviewed at every life stage—like when starting a family. He must take into account inflation, his current financial situation, number of dependents and the future financial and lifestyle needs of his family in his absence.

Just as death is a possibility one cannot ignore, so is the loss of earning capacity. The personal accident policy meets the need for replacing loss of income. Vikas must look for a comprehensive policy, which covers all contingencies— death, permanent total disability, permanent partial disability and temporary total disability.

Read more at economictimes.indiatimes.com

Are you buying insurance blindly? Find out

16 June 2016 By admin Leave a Comment

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Financial planners never tire of telling their clients not to mix insurance with investment. “If a policy generates investment returns for you, it stops being an insurance policy. It will neither give you good protection nor good returns,” says Sanjeev Govila, a Sebi-registered investment adviser and CEO of Hum Fauji Initiatives.

Yet, almost everybody has an insurance plan in his portfolio. Many buyers fall into the trap because a close relative or family friend makes them buy an insurance plan from them.

To be fair, many insurance buyers are misled by agents and financial advisers. Banks are at the forefront of mis-selling. If you go to a branch, relationship managers pounce on you with unsolicited investment advice. This used to be a problem only in foreign establishments and private banks but now even PSU banks are indulging in these unethical practices. The hefty sales targets and lucrative earnings from commissions (sometime more than the salary) have turned relationship managers into mis-sellers of insurance.

Banks have already been warned by the RBI. “The RBI would take strict action, including heavy penalties, if the banking industry continues to mis-sell third party products,” RBI Deputy Governor S.S. Mundra said recently. He has suggested that banks put in place a system of period inspection on sale of third-party products by their own staff or direct selling agents.

However, more needs to be done. One critical step is to ban the sharing of bank account details with the sales team. Most of the mis-selling happens because the sales team knows who has how much in his bank account. The RBI also needs to strengthen the ombudsman system and make the complaint procedure more customer friendly.

Read more at economictimes.indiatimes.com

Drastic measures needed if insurance sector is to reinvent itself, finds KPMG International report

14 June 2016 By admin Leave a Comment

insurance sector

Majority of insurers admit challenges extracting value from transformation initiatives; most say their transformation efforts have been less than ideal

Faced with disruptive economic, demographic and technological change, most insurers are struggling to reinvent their organizations for the future. According to Empowered for the future: Insurance reinvented, a report released today by KPMG International, only half of insurers polled believe they are capable of extracting and sustaining value from business transformation initiatives. Fifty-seven percent admitted that their transformation efforts to date have been less than ideal.

“Insurers have been trying to ‘transform’ their organizations for decades– yet very little has actually changed,” notes Mary Trussell, KPMG Global Lead Partner for Insurance Innovation & Change and lead author of the report. “If insurers are to truly ‘reinvent’ their business and position themselves for success in a world of disruptive innovation – they will need to make more fundamental changes to their business and operating models than ever before.”

The report was launched during the International Insurance Society’s Global Insurance Forum 2016 in Singapore (12-15 June) where industry leaders and executives gathered to discuss innovation and industry transformation.

Putting the customer first
According to the KPMG report, insurance executives clearly understand the urgent need for transformation. However, it finds many insurers are more focused on implications of regulatory policy and may not be placing enough attention on changes in customer preferences and needs. Less than a quarter of respondents expect their operating model to be disrupted by changes in customer behavior.

“We’d suggest that customers should be the inspiration for insurers’ efforts to reinvent themselves,” says Mary Trussell. “In a highly regulated sector, treating changes in regulation as a springboard to enhance the business for customers rather than something to be endured distinguishes players at the top of their game. The data suggests that many insurers may not yet have their eyes on the ultimate prize.”

See full story at www.prnewswire.com

photo credit: http://www.cxotoday.com/story/ict-adoption-in-insurance-sector-to-rise/

THINK AGAIN BEFORE ILLEGALLY MODIFYING YOUR VEHICLE

25 November 2015 By admin Leave a Comment

Repeat Offenders Will Be Subject to More Frequent Mandatory Vehicle Inspections

From 1 November 2015, vehicle owners caught with illegally modified engines or exhaust systems in their vehicles for a second or subsequent time will be subjected to more frequent mandatory vehicle inspections.

o Second-time offenders will be required to bring their vehicles for mandatory inspections every six months for a period of two years

o Third-time or subsequent offenders will need to bring their vehicles for mandatory inspections every three months for a period of two years.

This represents a more stringent inspection regime as compared to that for normal vehicles, which are typically inspected once every one or two years, depending on their age and type.

Any owner who does not comply with the inspection regime is guilty of an offence and can be fined up to $1,000 or jailed for up to three months on conviction for the first offence. On conviction for a second or subsequent offence of failing to comply, the maximum penalty will be doubled.

The enhanced inspection regime will complement existing penalties to deter motorists from modifying their vehicle engines or exhaust systems illegally. Any person who is convicted of an illegal modification can be fined up to $2,000 or jailed for up to three months, for the first offence. Repeat offenders can be fined up to $5,000 or jailed up to six months.

In addition, if a vehicle is found with a tampered engine, it will need to be deregistered and the owner may not be granted the rebates for the residual Certificates of Entitlement (COE) and Preferential Additional Registration Fee (PARF), if any.

The Land Transport Authority (LTA) takes a serious view of such illegal modifications, as an illegally modified engine or exhaust system can create serious safety and environmental hazards. Once a vehicle’s engine or exhaust system is modified without due certification and approval, the existing vehicle components may not be able to handle the increased power or speed. Such modifications may also affect the durability and reliability of a vehicle.

Currently, motorists may choose to legally install after-market exhaust systems that are certified to be suitable for the specific vehicle make and model. These exhaust systems which are specifically designed and engineered for a particular vehicle make and model will have undergone testing, either by the vehicle manufacturer or by independent test laboratories, to ensure compliance with internationally recognised standards.

See Full Story at LTA

Tips for your Car Insurance in Singapore

23 November 2015 By admin Leave a Comment

Driving and owning a car in Singapore can be a costly undertaking. It is not only the car and its license that is expensive, but also the car insurance can weigh heavy on one’s finances. No matter how much money one has, there isn’t any chance that one can lower the government-imposed charges for the usage of the car. Therefore, it is even more important that one finds a beneficial deal for the car insurance.

1. Drive safely

If one met a car accident, the rate one has to pay for its car insurance monthly or yearly is instantly increased. However, If you are driving safely around Singapore over a long period of time, your car insurance will remain the same or even shrink slightly.

2. No Claim Discount (NCD)

Many car insurances offer a NCD which allows a 10% discount for every year in which you haven’t claimed anything. Let’s say you have only a minor dent in the car, you may want to consider not claiming it from your insurance, as you can possibly save more with the discount. The NCD can reach a maximum discount of 50%, with which one can safe potentially thousands of hard-earned dollars. Thus, It is important to think twice before making any claims.

3. Being a Safe Driver

This also means being a law-obeying driver. Fancy and fast cars are extremely attractive in Singapore, but even if you have one of those race cars, you are still subject to the speed limits. If you have a clean license over an extended period of time, you can earn a further discount instead of another ticket. After three years driving without committing a traffic offence, you can even get the Certificate of Merit (COM), which brings you a further 5% discount on top of NCD.

4. Get the right insurance policy

When you are arranging a new car insurance policy. Often, pay attention to what you actually commit. Many policies often include unnecessary points. Go through them and use your common sense. It can be that your car insurance also covers you for something that you are already covered for. Being covered twice for the same cause will not bring you double money and doesn’t mean you can claim it twice.

5. Young drivers and insure driver

Inexperienced drivers has the tendency to crash a car more often than older and more experienced drivers which thus, results in a higher insurance policy for younger drivers in general. Even if you’re driving perfectly, you are paying more by default.

However, one can insure the car on another person or include a driver with more experience into the policy. Mixing a high risk and a low risk profile will in most cases reduce the insurance. Therefore, one should check who is a low risk profile. Statistically older or female drivers will fall in this category. Listing such as the main driver in one’s car insurance policy, can save some money.

6. Car engine

Each car is categorized with a certain amount of insurance money that the owner has to pay. It is generally known that the bigger the engine of the car, the higher is this amount. The reasoning of the car insurance companies is the higher risk. Statistically cars with a higher engine are more likely to crash. For obvious reasons, insurances are all about statistics. So if you can beat the statistic, you will save some money.

7. Modified Car

Most people will not modify their car, however there are car enthusiasts that do. A simple engine tweak or any other car modification can quickly become very expensive. What seems like a body shop bargain, can become a killer within the insurance policy. Therefore, it is worthwhile to check with your car insurance whether an upgrade is necessary.

Of course one could say that the insurance company doesn’t have to know. This is however an extremely risky undertaking. In case you do have an accident with your modified car and you haven’t notified your insurance about it, you can lose your cover immediately. Even if you haven’t caused the accident, the insurance company can refuse to pay anything. Hence, one shouldn’t modify outside the regulations of the Land Transport Authority (LTA) and definitely not keep it a secret. Handling your car insurance correctly doesn’t take too long and can award you with some extra cash.

By Peter Schimke

See Full Story at MoneyDigest

What To Do If Your Car Catches Fire

18 November 2015 By admin Leave a Comment

Image via Flickr user Patrick Strang

Car fires don’t happen frequently but when they do, they’re a potentially deadly emergency. According to Singapore Civil Defence Force (SCDF), the number of vehicle fires inched by 6.9 per cent last year 2014, from 281 to 233 cases. Latest statistics by the Singapore Civil Defence Force (SCDF) showed that of these incidents, 131 cases involved motor cars (including taxis).

The SCDF said that most of the fires occurred while the vehicles were travelling on the road and were caused by potential sources such as electrical faults and overheating within the engine compartment.

Most vehicle fires start small but can develop rapidly due to presence of flammables such as petrol, diesel and lubricants.

Here are the steps if you’re driving and spot any sign of smoke or flames emitting from your vehicle:

1. Signal and immediately pull over safely to the side road.

2. Turn off the engine and evacuate everyone from the vehicle

3. Call 995 for help.

It’s generally not recommended that you try to put out the fire yourself as opening the hood or car doors increases the air supply and may accelerate the fire. Once the fire has been put out, contact your insurance agent. If possible, take photo of the damage, and collect the names and phone numbers of witnesses. Ask the firefighters when and if it is safe to remove personal items from the vehicle. Have it towed to a repair shop for an inspection before attempting to operate it again.

To prevent these incidents, drivers are reminded to service your vehicle regularly at authorised vehicle workshops. Make sure that the electrical, engine and fuel systems are checked for any defect. Beyond this period, owners are encourages to conduct visual checks for any sign of oil leakage.

The SCDF also advises drivers to keep a fire extinguisher so as to promptly put out the fire before it spreads.

See full story on HomeTeam

Illegal Parking

16 November 2015 By admin Leave a Comment

Parking Rules & Regulations

Under the Road Traffic Act, “Park” means to bring a motor vehicle or a trailer to a stationary position and cause it to wait for any purpose other than that of immediately taking up or setting down persons, goods or luggage. Some of the common parking restrictions are:

1. Unbroken double yellow lines are laid down on the road – No parking at all times

2. Unbroken single yellow line is laid down on the side of the road – No parking between 7 a.m. to 7 p.m. on this side of the road, except on Sundays and Public Holidays.

3. Unbroken single white line is laid down on the road – No parking at all times on either side of the line

4. Unbroken double white lines is laid down on the road – No parking at all times on either side of the line

5. Within 3 metres of a fire hydrant – No parking at all times within 3 metres on either side of a fire hydrant.

6. within 6 metres of an intersection or junction – No parking at all times within 6 metres of an intersection or junction of any road or street.

7. Within 9 metres of a bus stop – No parking at all times within 9 metres of a bus stop (From the tip of the bus bay (back and front) and this includes the bus bay itself).

8. No waiting sign – No waiting at all times on the side of the road

9. No stopping sign – No stopping at all times on the side of the road

10. Pick-up/Drop-off bay:

Pick-up and drop-off points provided near public transport nodes are meant to facilitate immediate pick up and drop off. Hence, motorists should not wait at these bays, as this will cause unnecessary obstruction to other motorists picking up or alighting their passengers.

11. Single yellow zig-zag line along the side of the road (offence attracts demerit points) – No parking at all times on this side of the road and on the public footpath adjacent to the road.

12. Double yellow zig-zag lines along the side of the road (offence attracts demerit points) – No stopping at all times on this side of the road and on the public footpath adjacent to the road.

13. Single white zig-zag line (offence attracts demerit points) – No stopping at all times on this road

14. Abreast of another vehicle (offence attracts demerit points) – No stopping or parking abreast to another vehicle at all times.

15. Within a pedestrian crossing (offence attracts demerit points) – No parking at all times within a pedestrian crossing.

Composition Amount for Illegal Parking Offences

With effect from 1 January 2015, under the tiered fines for illegal parking regime, an individual who receives a Notice of Traffic Offence (“NTO”) for an illegal parking offence will be considered a repeat offender if he had received an NTO within the last 12 months from the date of his latest offence. The dates of the offence stated in the NTOs will be used to calculate the 12-month period to determine if an individual is a repeat offender.
A repeat offender may be offered composition at a higher amount as compared to another offender in similar circumstances but who is not a repeat offender. The composition amount offered may be more than 50% higher.
Apart from the composition amount, demerit points are awarded for certain offences. For offences that carry demerit points, it is mandatory for the vehicle owner to furnish the particulars of the driver.

See Full Story at LTA

It is better to be safe than to be sorry. Prevent accidents by taking all the precautions you can.

14 November 2015 By admin Leave a Comment

Image via Flickr user Bill Dickinson

1. As they say speed thrills and also kills. It is important to keep track on your speed while driving, so that one is in better control of the vehicle. Find out what are the causes that you will speed up? Is there an urge to speed when you have a driver close behind? Or, is it an effort to keep up with the traffic flow. Or, do you just simply enjoy over-taking when you are feeling upset or other emotions? It is especially important to lower speed while nearing schools, on narrow roads, hilly areas, rural areas and when visibility is poor. Wet roads and speed will led to higher chances of getting into an accident.
2. Obey traffic rules. Traffic rules have been designed with safety precaution comes first. It takes into account safety for all, including pedestrians. Follow the lane, and keep the required distance between vehicles. It is important to display appropriate indications/signals especially while changing lanes or before a turn. Follow the traffic rules to lower the risk of getting into accident.
3. Wear seat belts. Seat belts are lifesaving. A statistic has revealed that 63% of those who died in accidents had not strapped on their seat belts. According to the National Highway Transportation Safety Administration (NHTSA), lap-shoulder belt systems cut the risk of serious injury and fatality by 50 percent. Seat belts help in protecting the internal organs in a crash as it restrains the forward movement of the body to a great extent. It protects against head and neck injuries by minimizing head contacts and keeps the passenger in place.
4. Pedestrians and children come first. Preference is be given to pedestrians and children crossing the road. Besides that, it is also important to keep a look out for elderly when they cross the road as they tend to walk slower.
5. Read caution signs: Caution signs are very important as they warn about accident prone spots that is ahead so that the driver can reduce the speed of the vehicle. Signboards on the road are vital clues about road design so that the person behind the wheel can exercise caution.
6. Adopt antiskid break systems in the cars. It is to reduce the risk of cars skidding.
7. Air bags in vehicles are a must to cushion the impact in case of accidents.
8. Reflectors to be used on the rear of the vehicle. Ensure all lamps are in working condition. Hazard lamp should be switched on when the vehicle is parked on a highway.
9. Vehicle must be in good working condition. There should be no compromise on the quality of brakes and tyres. Further, it is imperative to inflate tyres with the right air pressure to avoid tyre bursts on road.
10. Roads should be in good condition with proper sign boards. It is vital to install reflectors on roads so that deviations and medians are clearly visible to drivers.
11. Avoid drugs and alcohol while driving. Drugs and alcohol can slow down reflexes, disrupt accurate judgments, and cause mental alertness to dip. They have been the reason behind many fatal road accidents.
12. Falling asleep behind the wheel has led to many grave mishaps on the road. Drivers must rest well as the lack of it can have an adverse effect on mental alertness, slow down reflexes, and even cause momentary sleepiness behind the wheel. What follows is a disaster.

See full story at MEDINDIA

False Injury Claims Drive Insurers to the wall

13 November 2015 By admin Leave a Comment

Image via Flickr user Jane Paulson

The offer of fast cash by a stranger in Changi General Hospital enticed Liyana Mohamed Noor to lie to the police and insurers twice that she had been injured in road accidents. She claimed to be riding pillion on her boyfriend’s motorbike when it collided with a taxi. The accident was bogus. So was the boyfriend, court documents obtained by The Sunday Times shown. Then, she claimed to be a passenger on an SBS Transit bus that had an accident with a motorcycle. She was not on the bus. Liyana, 22, was eventually found out and sentenced to five months’ jail on April 7 this year. While she was caught, insurers are concerned that many others get away with making false or inflated injury claims.

Left unchecked, these could lead to higher costs for insurers and higher insurance premiums for motorists.

Their average annual motor premium has risen 30 per cent since 2004 to more than $1,000.

Cases like Liyana’s are not an exception. A week ago, 16 people were charged with making false injury insurance claims of $4,000 to $10,400 each time.

One woman allegedly had $29,553 in all disbursed to her by her insurer for four accidents – in which she was allegedly not present at the scene and did not suffer the injuries she reported.

If convicted of cheating, they could be jailed for up to 10 years and fined.

A tip-off from an insurance company last year led to their arrest, the biggest in recent memory. Insurers allegedly deceived include NTUC Income, India International Insurance, American Home Assurance Company and AIG Insurance.

The General Insurance Association told The Sunday Times that the rise in bodily injury claims in recent years is a worrying trend. They increased from 8,704 in 2007 to 16,174 in 2008 and 17,868 last year. It is working with various parties to share information on fraudulent cases and build strong evidence so that fraudsters can be brought to justice.
The parties include the Monetary Authority of Singapore which regulates the insurance industry, Traffic Police, Subordinate Courts and Singapore Medical Association. Doctors write the medical reports necessary for people to make injury claims.

While GIA declined to discuss the modus operandi of claimants, industry players suspect a change in accident reporting procedures in 1999 may have contributed to the problem.

Motorists are no longer required to make a police report if no one is injured or if they received outpatient medical leave of fewer than three days. There are exceptions, such as accidents involving a pedestrian or a cyclist.

The Traffic Police will not investigate these cases, thus speeding up the processing of claims.

But a motor insurance taskforce formed by the Consumers Association of Singapore and Automobile Association of Singapore pointed out in March this year the possibility of people putting up dishonest accident reports to their insurers now that they did not have to lodge a report with the police.

It was also a change for motorists who used to avoid lodging a police report for fear of being fined or earning demerit points on their driving licence. They would settle matters privately without the involvement of lawyers and insurers. Now, they had fewer qualms about making a claim, and possibly inflating them.

See full story at HealthXchange

Insurance Agency Singapore | Commercial Insurance and Personal Insurance