Car and insurance

Reported that the motor insurers' underwriting profit is negative for the past 2 quarters.
The 2 largest motor insurer - NTUC Income and AIG, had reported of a possible 10% hike in their insurance premium. The 3rd largest insurer, AXA Insurance, reported that it is still making profits.

Vehicle owners, especially those with Income and AIG, be warned about a possible increase in the motor insurance premium.

Car owners are complaining that why is there a rise in my insurance premium when we have not make any claims?

Back to basic, insurance is a pool of fund contributed by the premiums collected. If you have someone in the pool that keeps withdrawing the fund (that is making claims), everyone just have to contribute more to top the fund up. The insurer would invest the pool of money to cover cost and try to make a profit.

Hence if you are a cautious driver, the insurer is already giving you a No Claim Discount to bring down the premium. But it does not help if your co-contributers to the pool of funds are reckless drivers. So, buying car insurance is also about luck!

So car owners, if someone knocks into you car, think before inflating your claim with the motor workshop by getting non-damage components replaced. You could end up paying more eventually in the form of car insurance premium. Its retribution in play if you want too.