Wednesday, November 22, 2006

 

Cost of an accident

Good morning,

Comprehensive insurance and cost of a motor car accident ?

When the motorist banged his car against mine he compensated me with two and a half dollars to have my rear bumper repaired. This was beans if peanuts was trifle, but proportionately it was considerable since the cost of my car when new was over four thousand dollars. That was in the early 1960s.

Today how many new motorists know how much an accident would cause. It is easy not to have thought about it; just get a licence, buy a new car and drive, or drive someone else. What is one hundred thousand dollars for the car, they had just outbid others for the COE anyway, so what !

Since all car owners are insured against third party liability, mostly they have comprehensi ve insurance, some motorists think that they have nothing to worry about. So drive and flash around, do not worry, weave out from behind and cut in, tailgate and intimidate the driver in front to get off his lane, speed and show off. Must have style when driving a car with all the sporty attachments, otherwise why have them. Perhaps these explain how a convoy of vehicles can telescope into each other, or how vehicle accidents can occur along one-way streets.

It is only when an accident occurred that a first time accident driver find out that there are sizable costs he or she has to pay. There is the excess amount for the repair and the loss of NCB or no claim bonus. Up to the limit of the excess amount the driver has to pay regardless when at fault, and this amount will be increased subsequently. The loss in NCB is the reduction in the premium payable; it is completely lost with the next insurance but it would be progressively restored by 10% over about five years. The excess amount could be a thousand dollars while the NCB of 50% of the premium payable on a 10% reducing basis over five years could total about three thousand dollars. Then there is the intangible cost of loss of use of the vehicle and its secondhand value. There is also the stigma in the insurance company records, and a record in the files of the Traffic Police. All these costs are not apparent until the event.

Belum kena belum tahu; sekali kena boleh menangis !

It is doubtful that even hell drivers can bring a car to a safe halt from within a car's length of the car in front from more than 90 kph !

Have a nice day
Ronald


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