What is subrogation in motor insurance claims?
In the context of Singapore, under the Barometer of Liability(BOLA) system, a subrogation claim is a claim made against the first party by the third party for the first party part in the accident.
For example, Mr A was riding a motorbike in 2008 when a saloon car knocked into him from behind. Mr A suffered some minor injuries and damages to his bike. The accident was prompted reported and left to the respective insurers of both parties to sort out the claims.
Mr A was very sure that he was not at fault and the incident was forgotten. However unknown to Mr. A, although his NCD was not affected, the insurers accorded him a 10% liability in the accident and the saloon car driver 90%. The saloon car insurer, A company then made a subrogation claim against Mr. A insurer, I company. As his liability is only 10%, his NCD was not affected according to BOLA agreement but Mr A will get a claim history of 10% of the damage bill. This will affect him for the subsequent 3 years even if he sold his bike and buy a saloon car.
Showing posts with label Car Insurance. Show all posts
Showing posts with label Car Insurance. Show all posts
How car insurance premium is calculated
How car insurance premium is calculated
Premium is calculated based on the following factors
1) Age Group This is car owner's age. Most company has similar age group factor
18 to 21 - super expensive
21 to 25 - quite expensive
26 to 30 - a bit expensive
31 to 65 - safe zone
2) Driving Experience This refers to how long did you get your driving license and has nothing to actual driving experience. This is measured in number of years
0 to 1 - super super expensive
1 to 2 - super expensive
2 to 4 - quite expensive
more than 4 - safe zone (most insurance company charge lowest rate for 4 years of driving experience, though some company 3rd year will give the lowest rate - eg. OAC under Great Eastern)
3) Job occupation (Indoor/Outdoor) This refers to the nature of work, like desk bound or sales
Indoor - cheaper
Outdoor - more expensive
So far, I have only heard of a company that charge the same rate for indoor and outdoor occupation as of Oct 2008. It's Mitsui Sumitomo.
4) NCB Discount No Claim Bonus discount, some may call it NCD (No claims Discount) You get 10% NCB every year if you do not have any accident. The maximum NCB that you can get 50%.
For example, your car insurance cost $2000 (before NCB) and you have 40% NCB, your premium would be $1284 {[2000 - (2000 * 40)] * 1.07} with GST. Hence the higher the NCB the lower your premium
5) NCB Protector This is application to people with 50% NCB, in the event of 1st accident in that policy year, your NCB will remain as 50%. After which, the 2nd accident will cause your NCB to be reduce to 20% (50% - 30%) . If you super unlucky and have the 3rd accident in a year your NCB will be reduced to 0% (20% - 30%, you cant get -10% so it will be 0%)
It is important to note that NCB protector is only effective if you renew your car insurance with the same insurance company. If my car insurance is with company A and my NCB is 50%, after the 1st accident (and it's my fault) , I still get 50% NCD as I got the NCB protector upon the renewal. However, instead of renewing my insurance with company A, I go with company B. I will only be entitled to 20% NCB.
6) Safe Driver Discount This is an additional 5% discount if you do not have any traffic offense or demerit point for the past 2 years. You only get this additional 5% when you have minimum 30% NCB.
For example, your car insurance cost $2000 (before NCB) and you have 30% NCB and safe driver discount, you premium would be $1423 {[2000 - (2000 * 30%)] * 0.95 * 1.07} with GST.
7) Engine Capacity (cc) This refers to your car engine in cc, the lower the cc the lower the premium
8) Year of Manufacture This generally means the year which your car is made/register. Generally, the older the car, the cheaper the premium
9) Body Type This general means the type of car like saloon, MPV, SUV. Some company will charge more for certain type of vehcile
10) Engine Type This usually refers to normal or turbo car engine, It's important to know that most car insurance company impose higher car insurance premium on turbo cars. Some insurance even reject cars with turbo engine.
11) Gender This is company dependent. Some company charge cheaper for male driver while some company charge female cheaper. Yet for some other company is the same rate. I think it's base on individual company statics.
12) OPC Car OPC also know as Off peak car (red plate). Some company give 5% discount for OPC (eg. NTUC) while other company gives same treatment.
If you need a quote for your car insurance, try out the form at mysingaporecar.com
Premium is calculated based on the following factors
1) Age Group This is car owner's age. Most company has similar age group factor
18 to 21 - super expensive
21 to 25 - quite expensive
26 to 30 - a bit expensive
31 to 65 - safe zone
2) Driving Experience This refers to how long did you get your driving license and has nothing to actual driving experience. This is measured in number of years
0 to 1 - super super expensive
1 to 2 - super expensive
2 to 4 - quite expensive
more than 4 - safe zone (most insurance company charge lowest rate for 4 years of driving experience, though some company 3rd year will give the lowest rate - eg. OAC under Great Eastern)
3) Job occupation (Indoor/Outdoor) This refers to the nature of work, like desk bound or sales
Indoor - cheaper
Outdoor - more expensive
So far, I have only heard of a company that charge the same rate for indoor and outdoor occupation as of Oct 2008. It's Mitsui Sumitomo.
4) NCB Discount No Claim Bonus discount, some may call it NCD (No claims Discount) You get 10% NCB every year if you do not have any accident. The maximum NCB that you can get 50%.
For example, your car insurance cost $2000 (before NCB) and you have 40% NCB, your premium would be $1284 {[2000 - (2000 * 40)] * 1.07} with GST. Hence the higher the NCB the lower your premium
5) NCB Protector This is application to people with 50% NCB, in the event of 1st accident in that policy year, your NCB will remain as 50%. After which, the 2nd accident will cause your NCB to be reduce to 20% (50% - 30%) . If you super unlucky and have the 3rd accident in a year your NCB will be reduced to 0% (20% - 30%, you cant get -10% so it will be 0%)
It is important to note that NCB protector is only effective if you renew your car insurance with the same insurance company. If my car insurance is with company A and my NCB is 50%, after the 1st accident (and it's my fault) , I still get 50% NCD as I got the NCB protector upon the renewal. However, instead of renewing my insurance with company A, I go with company B. I will only be entitled to 20% NCB.
6) Safe Driver Discount This is an additional 5% discount if you do not have any traffic offense or demerit point for the past 2 years. You only get this additional 5% when you have minimum 30% NCB.
For example, your car insurance cost $2000 (before NCB) and you have 30% NCB and safe driver discount, you premium would be $1423 {[2000 - (2000 * 30%)] * 0.95 * 1.07} with GST.
7) Engine Capacity (cc) This refers to your car engine in cc, the lower the cc the lower the premium
8) Year of Manufacture This generally means the year which your car is made/register. Generally, the older the car, the cheaper the premium
9) Body Type This general means the type of car like saloon, MPV, SUV. Some company will charge more for certain type of vehcile
10) Engine Type This usually refers to normal or turbo car engine, It's important to know that most car insurance company impose higher car insurance premium on turbo cars. Some insurance even reject cars with turbo engine.
11) Gender This is company dependent. Some company charge cheaper for male driver while some company charge female cheaper. Yet for some other company is the same rate. I think it's base on individual company statics.
12) OPC Car OPC also know as Off peak car (red plate). Some company give 5% discount for OPC (eg. NTUC) while other company gives same treatment.
If you need a quote for your car insurance, try out the form at mysingaporecar.com
Since 2000, direct insurance companies like AsiaDirect and Progressive have started to emerge as a top player in the insurance industry. The insurance industry calls these companies "direct" because they sell directly to you on the internet without an agent who can advise you on what coverage may be right for you, and they also offer only one company product. I read an article about the amount of money these companies spend on advertising, "The October 2010 Consumer Reports stated, those quirky characters in auto insurance TV ads might give you more laughs than actual savings. According to a 2009 survey, only 14 percent of consumers who compared premiums found that they had saved money my switching to these direct carriers".
Here is three main points why a local insurance agent is a must when buying insurance.
1. The first point and probably the most important one is when you buy from a local agent, they are there face to face to help you choose the right coverage. A local agent can gather some information about your assets and chose the proper liability coverage to protect you, your family, and your assets. They can also help you pick out the proper Comprehensive and collision deductible on your vehicles to match your budget and needs. Staying local and having an agent that cares if you are properly insured and getting the best value possible is the only way to go.
2. Claims! Nobody every thinks that they are going to have to file a claim. But if you ever have to, you want a local agent. A claims process can be a long ordeal when dealing with insurance companies. If there is ever a problem, you're going to want a local agent that is there to help. Otherwise, if you bought insurance direct online and did not have an agent, it is you vs. the insurance company. No one is on your side to defend your right.
3. Saves you money! In the long run, going with a good local independent agent will save you money. A general misconception about insurance is that going with a local agent will cost you more, incorrect. Some companies want you to go direct because then they don't pay the agent commissions out of their pocket. For example, Progressive rates are the same if you go through an agent or direct online except for one case. They have started an incentive for consumers to buy direct, where they offer a $50 discount on your first 6 months premium. After that your rate jumps back up level with what an agent can offer you. So, is $50 for 6 months worth not having an agent who will make sure you have the right coverage? I think not, but that is up for you to decide.
As you can see, having a local insurance agent is very important. Insurance companies are making it easier everyday to purchase insurance online and as insurance gets more and more complex you are going to want a local, caring agent who can help protect you.
Here is three main points why a local insurance agent is a must when buying insurance.
1. The first point and probably the most important one is when you buy from a local agent, they are there face to face to help you choose the right coverage. A local agent can gather some information about your assets and chose the proper liability coverage to protect you, your family, and your assets. They can also help you pick out the proper Comprehensive and collision deductible on your vehicles to match your budget and needs. Staying local and having an agent that cares if you are properly insured and getting the best value possible is the only way to go.
2. Claims! Nobody every thinks that they are going to have to file a claim. But if you ever have to, you want a local agent. A claims process can be a long ordeal when dealing with insurance companies. If there is ever a problem, you're going to want a local agent that is there to help. Otherwise, if you bought insurance direct online and did not have an agent, it is you vs. the insurance company. No one is on your side to defend your right.
3. Saves you money! In the long run, going with a good local independent agent will save you money. A general misconception about insurance is that going with a local agent will cost you more, incorrect. Some companies want you to go direct because then they don't pay the agent commissions out of their pocket. For example, Progressive rates are the same if you go through an agent or direct online except for one case. They have started an incentive for consumers to buy direct, where they offer a $50 discount on your first 6 months premium. After that your rate jumps back up level with what an agent can offer you. So, is $50 for 6 months worth not having an agent who will make sure you have the right coverage? I think not, but that is up for you to decide.
As you can see, having a local insurance agent is very important. Insurance companies are making it easier everyday to purchase insurance online and as insurance gets more and more complex you are going to want a local, caring agent who can help protect you.
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