I REFER to the recent letters published in The Straits Times Forum on motor vehicle insurance.
It is a widely held view that "insurance is mandatory", but the extent of how much insurance is necessary to comply with the law is often misunderstood.
The Motor Vehicles (Third-Party Risks and Compensation) Act prescribes as mandatory for a vehicle owner to obtain insurance against "liability which may be incurred by him or them in respect of the death of or bodily injury to any person caused by or arising out of the use of the motor vehicle in Singapore".
There is no mandatory insurance required for property damage, including damage to motor vehicles, whether your own or that belonging to the third party.
However, in my experience, I have not been able to locate any motor insurer in Singapore who offers an insurance product to comply with the minimum requirements under the law.
Most insurers will offer two main categories of products - comprehensive or first-party insurance, and third-party insurance.
Under the latter category, both injuries and property damage are covered.
A customer is not able to opt only for a third-party injury policy.
Hence, motorists pay for more than what they need.
Perhaps the General Insurance Association of Singapore (GIA) can assist in identifying which motor insurers offer "third-party injury only" policies so that motorists can get the necessary mandatory insurance cover without having to pay for additional coverage that they may not need (such as third-party property damage insurance).
If there are indeed no motor insurers offering "third-party injury only" insurance, then the GIA and relevant authorities should look into this matter.
It is unfair that consumers, who are required to take up third-party injury insurance by law, are taken advantage of by motor insurers who build and bundle an expensive insurance product because they know that consumers have no choice but to take it up.
