Court sets aside attempt to make him bankrupt
Stolen car, brought for $125,000, valued at $50,000. Insurer sues owner when he stops repaying loan Parties must now agree on market value of car
By Tan May Ping
October 17, 2006
FIRST, his car was stolen. That was just the start of his problems.
'I was stunned. I did not know where they got that amount from. If they were willing to loan me $118,000 for the car, it show the car was worth that much.' said, Mr Ng (above) with a Grandis brochure -- KELVIN CHNG
When he didn't pay the car loan instalments while his insurer investigated the case, he was served with a bankruptcy notice.
There was another shock in store.
The insurance company valued his 10-month-old car, which he had bought for $124,700 in 2004, at only $50,000.
This was a massive drop of $74,700 or a 60 per cent depreciation in the car's value in less than a year.
What it meant was that he had not only lost his car, but would still owe more than $68,000 after the insurance payout for his loss.
NTUC Income Insurance Cooperative is both his insurer and loan company. It said the value was decided with the help of 'independent market sources' and a panel of appraisers.
FOUGHT PETITION
Mr Anthony Ng, represented by lawyer Mahmood Gaznavi, fought the bankruptcy petition and the High Court set it aside on 28 Sep.
Mr Ng, 33, who runs an interior design and construction business, had bought the car, a Mitsubishi Grandis, on 31 Aug 2004.
He told The New Paper that he chose NTUC Income for both the insurance and financing as it was offering a package deal.
He made a down payment of $6,700, and took a loan for the remaining $118,000.
On 28 Jun last year, when he went to visit a cousin in Pasir Ris, the car was stolen.
He had parked it in a multi-storey carpark on Pasir Ris Street 53.
POLICE REPORT
The car had an alarm but Mr Ng did not know whether it went off.
'I don't know why I was so 'suay' (unlucky in Hokkien). There were other Grandis cars there too,' he said.
He made a police report the same day, and later informed his insurer on the phone.
Mr Ng claims that the insurance officer he spoke to told him he didn't have to pay the loan instalments while the case was being investigated.
He also claimed that the person said she would inform the loan department of his case. However, he does not remember the name of the person.
Said Mr Ng: 'I assumed she would do so since both are under the same company. Besides, at the beginning, they promoted themselves as offering a package.'
He was also hoping the car could be recovered.
But the police said it remained on the list of stolen cars.
Mr Ng lodged a formal report with NTUC Income on 2 Sep last year. On 9 Dec, he received a letter from its loan department demanding payment for the outstanding amount, as he had lapsed in paying his instalments.
After that, Mr Ng claims, he made repeated attempts to clarify the matter with NTUC Income over the phone.
Then on 3 Feb, NTUC Income started bankruptcy proceedings against him. It alleged that he owed $68,423.39.
OUTSTANDING LOAN
The sum was calculated by deducting $50,000 - the estimated value of the car as of 1 Dec 2005 - from his outstanding loan, which, with interest, was $118,423.39.
The value of the car was estimated by two surveyors appointed by NTUC Income: Pang's Motor Trading and ETS Auto Trading.
'I was stunned. I did not know where they got that amount from,' said Mr Ng.
'If they were willing to loan me $118,000 for the car, it shows the car was worth that much. How could it be that after just 10 months, my car was worth only $50,000?'
The New Paper checked with four motor trading companies.
While the companies, which declined to be named, could not say for sure how much a 10-month-old Mitsubishi Grandis would have cost in June 2005 (when Mr Ng's car went missing), all of them gave estimates of more than $70,000.
A search of classified advertisements in The Straits Times in June last year showed one for a 2004 Grandis with an asking price of $79,800.
When the matter could not be resolved, Mr Ng hired law firm Mahmood Gaznavi & Partners to fight his case.
Mr Ng challenged the bankruptcy petition in the high court.
HE TAKES TAXIS, BUSES
His lawyer told The New Paper that the court allowed Mr Ng's application that the bankruptcy petition be set aside.
'It is now up to NTUC Income and my client to agree on the market value of the stolen vehicle,' said Mr Gaznavi.
Mr Ng has been getting around using another car which he shares with his parents. He has also been taking taxis, buses, and getting rides from friends.
And he can't wait to see the matter settled.
'I just want them to be fair to me,' he said. 'I didn't get some one to steal my car, and when it happened, it already didn't feel good.'