AIG removes cover for McLarens driven out of Singapore

In a rare move by an insurer, AIG has decided, with effect from 1 Apr 2024, to stop insuring McLarens when they are driven out of Singapore.

What this means is that any losses arising from trips across the Causeway and beyond will not be covered by the insurer, even if the car owners have an existing motor insurance policy under AIG. This is an unusual move as insurers usually evaluate the risk profile of certain car models and brands at certain periods of the year and then make the decision to exclude coverage for the models and brands that do not fall within their risk appetite. In this instance, the existing policies are affected as well, despite the prior agreement for a 1 year coverage between the insurer and policyholders at the point of purchase.

As much as it is likely a business decision by AIG to minimize and mitigate its risk exposure owing to the poor claims experience for McLarens, one thing is for sure: this decision will not go down well with policyholders, both existing and potential ones, and goodwill lost will not be easily earned back.

If you own a McLaren and are affected by this change, you may wish to explore alternative insurance providers who offer coverage for exotic or high end vehicles. Contact us today for a non-obligatory quote.

Changes to Foreign Workers Medical Insurance - Jul 2023

With effect from 1 July 2023, the requirement by Ministry of Manpower (MOM) to maintain adequate medical insurance for foreign workers on work permits have increased from S$15000 to S$60000 per year. Also, employers are subjected to a 25% co-payment for any claims above S$15000, up to the annual limit of at least S$60000. On top of that, for employers who choose to cover their workers for the minimum of S$60000; in the event that anything happen to their workers and the claim amount is more than S$60k, anything above the figure will have to be borne by the employers.

In order to mitigate such scenarios, insurers are coming up with options which waive the 25% co-payment by the employer; meaning that bill sizes of less than or equal to S$60000 will be covered fully by insurer. There are also options for employers to provide their workers with a more comprehensive coverage of beyond S$60000 as well so that they don't get a shock or have to come out of pocket in the event that anything untoward happen to their workers and the bill size works out to a huge amount.

With the new changes happening, it is timely to review your current foreign workers medical insurance to ensure that your company is not only compliant with MOM's requirements, but also ensuring that the coverage provided for the workers along with the premium paid is competitive. Contact MAKinsure for your company's renewal needs today!