Motor policy covers collision

A slightly edited version of this letter was published in Straits Times today.

15 September 2012

Editor

Forum Page

Straits Times

I agree with the views expressed by Abbas Vakharia "Fatal Ferrari crash: 

Insurer's stance cause for consumer concern" ST 15 Sep 2012.

AXA's insurance policy clearly states that it covers the motor vehicle that is

accidentally damaged by the operation of several named perils, including "collision".

I am puzzled by a statement from AXA reported in Today paper that it covered 

only "accidents" and not "collision".

AXA's policy does have a clause, stating that the policy does not cover "any wilful act 

and/or wilful negligence" of the insured or an authorised driver. 

A "wilful act" means that the Ferrari driver intended to collide into the taxi

and even to take his own life. While the driver was reckless, I cannot image that 

he had intended to cause the collision.

I hope that the Insurance Commissioner's office will discuss this issue with AXA and 

clarify if AXA's stand is justified, based on the circumstances. Consumers need to be

assured that insurance companies will act fairly in meeting their obligations. Special attention is required from the regulator, as motor insurance is 

compulsory by law. 

Tan Kin Lian
President
Financial Services Consumer Association