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...
