Friday, 10 November 2017

Inflated Medical and Car Repair Claims for Insurance

There should be a relook into how claims should be handled to prevent inflated claims that are really mind-blowing. Here is an example of one of those incidents whereby it fit into the scenario of an inflated claim.

Recently, we got into an accident and it was around the Newton Circus roundabout. It was during the peak hour of around 5 pm. Basically, the car just cut into our lane and thou we stopped, the car still drives on and thus causing scratches on his side door. Speed was maxed at 10-20km/hour given that we are in a roundabout and it was jam-packed.

At the end, there was a claim for the car repair of around 3k which I guess is the standard price for an insurance claim. That was fine since all of us are used to such an amount. However, if insurance was bought with NTUC, owners claiming will have to drive their cars to IDAC and I believe we will get a fairer and much more independent assessment as compared to getting any workshops to assess it.

The mind-blowing claim came after the car repair claim. Here is a print screen of the claims issued by his law firm:



If a slight collision at 10-20km/hr in a jam-packed roundabout could cause such devastating effect, it really makes me wonder if this person is made of tofu. Given the 'severity of the situation", the actual medical cost incurred seems to be meager. I wonder how many booklets did they make a copy of for the Postage and Photocopying cost to come to 321 dollars. It is quite an obvious case of trying to take advantage of an unfortunate incident. These claims are usually coordinated by specialists in this area.

The authorities should step in to form a fair and independent system for car insurance claims to prevent such obvious inflated claims from even surfacing. IDAC could be made available to all insurers and perhaps an independent panel of doctors prefixed by the authorities could be used for medical claims.

The bottom line is if the general insurance business is making losses from such unreasonable claims, it will be a lose-lose proposition for the majority as premiums are likely to be raised across the board due to a few black sheeps.

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