SINGAPORE, June 14, 2016 – There have been queries raised in social media about the coverage provided by AIG’s car insurance policy, Auto Protector.
Specifically, there is some confusion about the difference in coverage between the standard car insurance policy and the additional Personal Accident (PA) cover which is an additional benefit to the car insurance policy.
We would like to clarify the key concerns raised:
1. How do the exclusions in AIG’s PA cover affect the coverage for a 12-year-old child and elderly parents? Can I still ferry them in my car or are they not covered?
We would like to assure you that you can ferry your 12-year-old child and elderly parents as passengers in your car, as they are covered under your AIG car insurance policy.
To explain, as part of AIG’s car insurance policy and as required under the Motor Vehicles (Third Party Risks and Compensation) Act, AIG already provides unlimited cover for injuries or death suffered by any person that results from a car accident that the driver is held liable for. This includes all passengers without any exclusion. This is also stated in our product brochures and under Section II of our private car insurance policy wordings as shown below:
It is only in the additional PA cover that there are exclusions for certain groups of unnamed passengers. The PA cover is an additional cover that provides death and disablement benefits of up to S$10,000.
We would like to share two examples to provide further clarity between the difference in the cover provided for under our car insurance policy and the additional PA policy:
- 70-year-old Mr Seah is insured with AIG.
- He was driving his wife (68 years old) and a friend (66 years old, and who has had a few drinks) home after dinner.
- Unfortunately, Mr Seah got into an accident.
- His wife and friend were seriously injured in the accident, and had medical bills that amounted to S$100,000.
- With the supporting documents that Mr Seah’s wife and friend provide, AIG will assess the claim and then make the payout for the medical bills incurred by Mr Seah’s wife and friend.
- 45-year-old Mr Goh is insured with AIG.
- He was driving home with his wife and two children aged 10 and 8 years old when they got into an accident.
- His two children were seriously injured.
- Unfortunately, Mrs Goh passed away from her injuries.
- With the supporting documents submitted, AIG will assess the claim and then make the payout for medical bills for the two children and death benefit to the estate of Mrs Goh under Mr Goh’s car insurance policy.
- Separately, AIG will also pay S$10,000 as the death benefit under the additional PA cover to the estate of Mrs Goh.
2. Do I have to name all the passengers I expect to ferry, so that everyone travelling in my car is covered?
You need not name any passengers to be covered under our standard car insurance policy and the additional PA cover for passengers.
3. Under what circumstances will AIG cover me for liability towards third parties, specifically, my passengers?
Under the Motor Vehicles (Third-Party Risks and Compensation) Act, the driver of a vehicle must be insured against liability for the death or bodily injury of any third parties which he may cause. The Act also imposes an obligation on insurers to assess such third party claims and make payouts if necessary. The driver’s insurer may have the right to claim against the driver for any compensation it paid to third parties, if the accident was the result of the driver’s breach of his car insurance policy.
- Your passenger is drunk and you drive him home. Along the way, you get into an accident and your passenger is injured. We will compensate your passenger for bodily injury under your car insurance policy.
- You had several drinks but decided to drive home with your passenger whilst intoxicated. Along the way, you get into an accident. Your passenger was injured. We will compensate your passenger for bodily injury, but may seek recovery against you as you were in breach of the car insurance policy terms by driving whilst intoxicated.
4. If I am already covered for third party liability, why do I need additional PA cover?
Liability towards third party cover is supposed to indemnify the insured – that is, compensate the insured for loss or damages from the third party claim(s) for an unlimited amount. The PA cover is a benefit on top of this cover which will pay an additional sum for death or disablement above and beyond the liability cover based on the terms and conditions specified in the car insurance policy.
5. Is the amount an injured passenger can recover only unlimited if they sue and obtain a judgment in their favour? Otherwise, is their claim limited to a payout of only S$1,000?
Injured passengers are fully covered for their injury or death claims under AIG’s car insurance policy. The cover of S$1,000 is for an additional benefit under our car insurance policy for medical expenses.
6. What if I get into an accident and I have my elderly parents with me who are aged above 65 years old, and also my 12-year-old son? Do they have to sue me in order to get compensation?
There is no need for a lawsuit if the driver, who is liable for the accident and the parties seeking compensation all, agree on who is responsible for the accident and the quantum of compensation. For such cases, you can directly submit the claims to the insurer. In the example you mentioned, all your parents need to do is to file a claim with the insurer. For your 12-year-old son, a third party bodily injury claim can still be made through your spouse.
We hope that our responses have provided clarity, and would like to assure our customers that AIG regularly reviews all its policies to ensure that we continue to meet the needs of our customers.