Advance payouts from the Ferrari crash

The insurers of the Ferrari involved in the crash at Victoria Street Junction have taken the unusual step of offering advance payouts to the victims. Normally, an insurer's payout to third-party victims would not be made until the insured driver is found to be at fault by the court, or until the consent of the driver's family is obtained.

In the May 12 crash, Mr Ma Chi, driver of a limited edition Ferrari, is said to have run a red light along Victoria Street, hitting a taxi, which then hit a motorcycle. The cabby and his Japanese passenger died, while two others were injured. AXA Insurance Singapore claimed that Mr Ma's recklessness meant that the May 12 tragedy was a "collision" and not an accident, and therefore it would not provide insurance coverage for the family, but would settle the claims of third-party victims and then seeked to be reimbursed by the family.

The family has challenged AXA's stand and a potentially landmark court case to settle the issue is pending.

Stated in court papers filed on Tuesday that if traffic conditions were poor, as claimed by the Ferrari driver's family, then "the response of a prudent and reasonable driver will be to reduce speed to ensure the safety of himself, his passengers and other road users". It also added that "The driver drove his Ferrari at a speed far in excess of the limit for the road and went through a junction where the lights were red against him for a substantial period of time."

An AXA spokesman clarified that this was an extreme case "sitting far beyond the risks that motor insurance policies cover. We are of the view that as a responsible insurer, we provide cover for risk but we cannot guarantee cover for extreme acts of recklessness".