Hike in insurance premiums for bikers
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http://straitstimes.asia1.com.sg/storyprintfriendly/0,1887,183308,00.html?
APRIL 15, 2003
Hike in insurance premiums for bikers
Insurers says bikers are high risk - they are the most vulnerable on the road, averaging one fatality every four days
By K.C. Vijayan
MOTOR insurance companies have pushed up premiums for motorcycles, especially those driven by youngsters under 21 years old.
And traders believe premiums may increase beyond the about 25 per cent hike now - or almost double in the case of riders under 21 years old - before levelling off unless new players enter the market. Already, one company has pulled out of the motorcycle insurance market.
Another factor pushing premiums up - motorcyclists are the most vulnerable group of road users, with an average of one fatality every four days.
Last year, the number of motorcyclists and pillion riders who died on the road increased to 101 from 88 in 2001. About 60 per cent of those who died were below 30 years old and at least three motorcycle accidents a month involved death or serious injury to riders aged 21 years or younger.
Industry players say they have had to up premiums because of the high risk involved.
NTUC Income, which commands at least 51 per cent of the insurance market for motorcycles, now charges an average premium of $850 for a new 175 cc motorcycle, up from $688 last year.
But for riders younger than 21 years, the premium may be double compared to riders above 30, said NTUC Income's general insurance manager Adeline Ang.
'Based on our claims experience, motorcyclists below 21 are poor risks compared to those 30 years and above.'
Mitsui-Sumitomo, another big player in the market, now charges a premium of $1,425 for a rider below 21 on a new 200 cc motorcycle, up from $950 last September.
And the company does not accept scramblers or off-road models, sports bikes and ones with fairings - motorcycles primed with a fibreglass cover in front to improve their aerodynamics.
NTUC Income also stopped insuring some speedy models like the Yamaha RXZ, Honda CB400, Honda RVF400 and Honda NV400 in February because 'the claim experience for these models has been bad', said Ms Ang.
A major player withdrew from the motorcycle insurance market last November.
'Claims have outstripped premiums and the market has become unprofitable for us,' said a company spokesman, who requested that the firm not to be named.
Mr Jonathan Phoon, who runs a leading motorcycle trading firm, A S Phoon Pte Ltd, said: 'Higher premiums have affected the sales of the bigger bikes.
'Bikers are unlikely to be able to afford the higher premiums of between $2,000 and $3,000 a year.'
But he said sales of smaller motorcycles were not hit as much by premium rates as by the economic downturn.
The figures bear this out.
Although motorcycle insurance premiums, especially for younger riders, have skyrocketed in recent years, overall sales have risen - from fewer than 10,000 in 1998 to 17,092 motorcycles and scooters last year.
Said Mr Phoon: 'A 200 cc bike costs about $5,000, but a rider aged below 21 would cut premium costs by opting for third-party insurance cover, which only adds up to $300, instead of comprehensive insurance cover, which would amount to more than $1,000.'
Bearing the brunt of the rise in premiums are courier and delivery companies that maintain fleets of motorcycles. It is also bad news for motorcyclists who have a good riding record.
Said operation manager Joseph Goh, 43, who rides a Phantom 200 to work: 'The insurers should differentiate between those who ride many hours as part of their work and the joyrider. Those who ride less should be charged even more.
'I've had no problems in my 25 years of riding because I always keep left and give way to bigger vehicles, unlike those who take the middle lane.'
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HIGH-RISK: Prone to accidents
Number of motorcyclists and pillion riders who died on the road last year: 101 (up from 88 in 2001)
At least three motorcycle accidents a month involved death or serious injury to riders aged 21 years or younger. 'Claims have outstripped premiums and the market has become unprofitable for us.' - A spokesman for a company that withdrew from the motorcycle insurance market last November ...
Damm unfair to us..
What cheap means of tpt, now have to pay high insurance premiums... -
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see the case file in the strait times...everyday got bikers dying.....hai~~~wat's with the speeding huh? be safe, like me lah....
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well not to say tt i am cursing anyone, i feel that even if we are a safe rider, just takes one asshole and u are gone...Originally posted by De|usi0n:see the case file in the strait times...everyday got bikers dying.....hai~~~wat's with the speeding huh? be safe, like me lah....
i remember a news article, a biker going to turn right at a jn at havelock road, waiting at the turn right pocket, this driver (angmo i think), kissed him to hell -
very true...bikers are very sensitive to any form of accident...by themselves or by others....me being a biker as well, understand it alot more on the road, where taxi think that they are the king of the road....Originally posted by j007:well not to say tt i am cursing anyone, i feel that even if we are a safe rider, just takes one asshole and u are gone...
i remember a news article, a biker going to turn right at a jn at havelock road, waiting at the turn right pocket, this driver (angmo i think), kissed him to hell
once i was doing a right turn at a cross junction, another lorry driven by a malay was filtering from my opp into the same road as me....he tried to cut into the center lane and i horn at him....
he is one stubbon freak that do not want to follow behind me and speed up, wanting to overtake me. hope thsi malay focker die soon. -
Actually it is the bad claim practices that has partly led to the hikes in insurance premiums. Look at the way they are claiming last time through all the loopholes ... and because of those loopholes now we have to bear the increased risks costs ....
Increasing the costs is not a feasible solution in my view ... they should really do something about their system of claiming before they start to hike prices .... -
Only 2 companies doing motorcycle insurance.
If they make money-no noise.
Lose money-never ending increase.
They should look into the roots of their lost-insurance claim.
So penalise those companies not motorcyclists. -
AGREE!!!Originally posted by tamote_80:Only 2 companies doing motorcycle insurance.
If they make money-no noise.
Lose money-never ending increase.
They should look into the roots of their lost-insurance claim.
So penalise those companies not motorcyclists.
tats realli not the solution.if it keep increaseing,its not benifiting both the company n the bikers.someday the premiems with cost half the bike price...even the coe is not up to tat percentage of cars.
Hai~~
So big company cant some1 even come out with a better solution???
realli no prospect man... -
so wats the rough price for it now if im below 21 and wantin to buy a 150sp?
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the article only mention about younger then 21 and above 30, how about in between?
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What I am afraid of is that the insurance company won't insured some make/models of bike when they recieve too much claim for that particular make/model......
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Wah liddat next time some bikes cannot get insurance frm any company and will vanish...Originally posted by aaron017:What I am afraid of is that the insurance company won't insured some make/models of bike when they recieve too much claim for that particular make/model...... -
sad sia ... sigh ...
btw, let's have some feedback and comparison ...
how much u guys paying on insurance for RVF? CBR? Super4? R1? G1? Haya? SP? etc etc ...
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In between fluctuate high and low lor ... they 'song' they charge u cheap ... beh 'song' charge u more ... hahahahaha ...Originally posted by daniuge:the article only mention about younger then 21 and above 30, how about in between?
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1.8kOriginally posted by Ch@r|es:so wats the rough price for it now if im below 21 and wantin to buy a 150sp? -
in between $300-2k lohOriginally posted by daniuge:the article only mention about younger then 21 and above 30, how about in between? -
anyone knows where to get information on the price of insurence?? thanx
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Insurance>>> I believe there is a website from NTUC income for you to do your own insurance quotations, site name I do not know.
There is also another way, by going to the company eg: NTUC INCOME branches to enquire abt your insurance price, they would ask you for the log card, but never bring wont hurts. They want it cos they want to know the exact cc of the M/cycle.
I am currently 22+ with more than 3 years riding/ driving experience, and my quotation for a YZF- R1 about a year old, is S$3200/- for a comprehensive plan, TPFT would cost me S$1200/-(est).
KTM 400: TPFT- S$500/-, with 10% NCD, Comprehensive about S$800/-
BMW GS1100/1150: Comprehensive about S$1200/-.
Insurance differs for every bike and rider, it works in a point system, every question they ask would actually have a point system, so the more points you incur, the more ex the plan, even the bike's brand plays a part. For eg the BMW GS1100/1150 seems cheaper than an R1 but it is because it is another company, a company which only insures, Ducati, Harleys and Bimmers, Liberty Citistate Ins Com. But the base money you have to pay for each insurance cliam is considerably higher than other ins company...
Well this is just my 2 cents worth..
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wat's worst is that a new bike is an additional 20pts
i guess that's to protect them from the cases of new bikes 'disappearing' after the owners got into a bad crash. -
fer insurance quotations, u can pm me. i can help, but its not accurate loh, can cfm ish tat... the price i quote u should be arnd there.
the quotations i gave is only fer REFERENCE. i will help when i'm free, but i everyday free la. . . . -
my REFERENCE quotations is frm NTUC...
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?????????Originally posted by InSPirE78: -
But everyday on the way to work, I see bikers weaving in and out at a very fast speed and without giving a damn about signalling.Originally posted by tamote_80:Only 2 companies doing motorcycle insurance.
If they make money-no noise.
Lose money-never ending increase.
They should look into the roots of their lost-insurance claim.
So penalise those companies not motorcyclists.
I also ride and my object is to reach my destination safely.
I dun understand why ppl treat roads like tracks.
One mistake will cost bikers and many dun see the light.
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i can tell u sth, ALL bikers squeeze thru cars, including those riding instructors, TPs, ROVs. when ur learning, they tell u tis & tat, but once lesson finish, u can see those instructors ride beri fast, chut pattern liao... so u get the light here?Originally posted by Ultra Magnus:But everyday on the way to work, I see bikers weaving in and out at a very fast speed and without giving a damn about signalling.
I also ride and my object is to reach my destination safely.
I dun understand why ppl treat roads like tracks.
One mistake will cost bikers and many dun see the light.
can squeeze, u sqeeue, if not dun sqeeuze loh. its always the riders perception...