Singapore Law Watch : Insurers slam brakes on cars modified illegally

[West Spec]

http://www.singaporelawwatch.sg/remweb/legal/ln2/rss/legalnews/69547.html?utm_source=email%20subscription&utm_medium=email&title=Insurers%20slam%20brakes%20on%20cars%20modified%20illegally&notShowClose=y

Insurers slam brakes on cars modified illegally

[2010] 02 Nov_ST

 

 

 

 

Title: Insurers slam brakes on cars modified illegally

Source: ST

 

 

 

Legal News Archive

 

 

IF YOU meet with an accident involving a vehicle that has been modified, you may have to pay for your own repairs.

 

Motor insurers have refused to honour damage claims arising from accidents where modified cars were involved, although the numbers, they say, are small.

 

This happens when the owner of the modified car had either made illegal alterations to his vehicle, or had not declared the alterations to the insurer. In these cases, his insurance policy might be declared null and void when the modifications are later discovered.

 

And if your car was hit by the modified vehicle, you might not be able to claim for the cost of the damage.

 

Aviva, a British insurer which sells its policies entirely online, said such cases make up only 0.003 per cent of its accident claims, while declining to give the exact number.

 

In most of them, Aviva said the cars were heavily modified, with all of them having had their catalytic converters removed - an illegal practice.

 

A catalytic converter renders exhaust gases less harmful to the environment, but has been known to impede a car's performance.

 

Mr Paul Jackson, head of Aviva Car Insurance, said the company does not accept clients with modified vehicles.

 

'On our website, we ask the question 'Is your vehicle modified from the manufacturer's standard specifications?' If the customer answers 'Yes', we stop the quote process immediately. If the customer answers 'No', we trust they are giving us accurate information and will sell them a policy.'

 

While some other insurers accept modified cars, they charge 10 to 50 per cent more to cover them. And the onus is on the owner to ensure that the modifications are declared in detail.

 

Ms Cady Ho, vice-president (personal lines) of Chartis Insurance, said: 'Policyholders must always declare such modifications, whether material or otherwise, to avoid a potential claim being denied.'

 

Ms Christine Yeh, spokesman for MSIG Insurance, said the company would scrutinise an accident vehicle to see if it had been modified, and, if so, whether all the modifications had been declared by the owner.

 

'If the risk has been misrepresented, it could be regarded as non-disclosure and this may lead to the claim being declined,' Ms Yeh said.

 

Most insurers draw the line at illegal modifications. An NTUC Income spokesman said: 'If illegal modifications alter the performance of the car significantly, Income may repudiate the claim totally.'

 

In one such case recently, the owner claimed his car was a second-hand vehicle and he did not know it had been modified. He was involved in a chain collision.

 

After inspecting the accident vehicle, his ex-insurer found that it was modified extensively. It nullified the policy, and refunded the premium. The car owner ended up paying tens of thousands to repair his vehicle and the one he collided with.

 

Aviva's Mr Jackson said 'it's really important when buying a used car that customers satisfy themselves that it's roadworthy, irrespective of their insurance arrangements'.

 

Would consumers be left in the lurch if they meet with an accident involving a modified car?

 

General Insurance Association president Derek Teo said insurers are required by law to honour injury claims even if they have cause to void a policy. They will then recover the costs from their former client. However, there is no such requirement for property damage claims.

 

The Consumers Association of Singapore said insurers should highlight clauses about modifications, but added that consumers, in turn, should be truthful.

 

The number of illegally modified cars is on the rise. According to the Land Transport Authority, 2,510 people were caught having such vehicles last year - 44 per cent more than the 1,746 nabbed the year before. In the first six months of this year, 1,381 were nabbed.

 

Although rules have been relaxed over the years, some alterations are still banned outright. These include changing the capacity of the engine and installing crash bars.

[jB]

WTF!?!

[wait4me]

And if your car was hit by the modified vehicle, you might not be able to claim for the cost of the damage.

>>>> wa this part totally power

[wait4me]

And if your car was hit by the modified vehicle, you might not be able to claim for the cost of the damage.

>>>> wa this part totally power

[Demon]

And if your car was hit by the modified vehicle, you might not be able to claim for the cost of the damage.

>>>> wa this part totally power

 

knn, these insurers are really blood suckers.

 

Instead of putting their brains to tackle these exaggerated claims, they just keep find new ways to pass these cost back to us.

[ulysses_sc]

Win! So if claim from own insurance, next time premium increase sky high! If bad luck claim own insurance a couple more times, will get blacklisted and cannot renew insurance!

 

Insurance companies - 1, consumers - 0

[wait4me]

since like that

all mod cars la ..

knock ppl , come out and laugh

 

u cant claim me , my car modded ..

sorry ah

[NoFishesAllowed]

singapore more and more ****ed up sia... knn... like tt everyone sure mod liao lo

[comics00]

good thing my car is MODDED

[LollyPoP]

tml i go change my exhaust 1st thing in the morning.

[NoFishesAllowed]

does this apply to motor bikes?

like if we mod?

[comics00]

monday i go mod my Spark135