MAS requests insurers to relook motor insurance for older drivers

The call by MAS comes after increasing complaints of higher premiums and being denied coverage when they are older than 65 years of age.

The Straits Times reported that MAS has urged insurers to look at offering "a suitable motor insurance product for older drivers". The request comes after recent discussions it held with the General Insurance Association (GIA). According to a MAS spokesman, while older drivers can still get motor insurance coverage, "the premiums are higher".

Similarly, the Land Transport Authority (LTA) said last week it was reviewing a suggestion made by the Automobile Association of Singapore (AAS) for a MediShield-like scheme with "relevant parties". According to AAS Chief Executive, Lee Wai Mun, the issue poses a serious "mobility challenge" if it is not resolved, with the increasing grey population.

Insurers, are opposed to the MediShield-like idea - as an insurer's liability is capped with MediShield but in motor insurance, the liability is "limitless", said GIA's Executive Director Derek Teo. Mr Teo also added while there is no industry wide prejudice against elderly drivers and "providing motor insurance cover for them is a challenge for insurers".

He agreed in general that older drivers pay higher premiums, akin to younger inexperienced drivers - mainly citing the reason of slower reflexes and not much on aggressive or reckless driving.

Insurance brokers interviewed by the local paper also acknowledged most insurers refuse to provide cover for drivers older than 65-years of age even though the general rule with the Traffic Police is they can drive as long as they pass a medical check-up once every three years.

Mr Teo added, older drivers can improve their chances of getting coverage when they have a maximum no-claims discount and drive sedans. He also suggested older drivers to agree on paying a higher excess rate - the initial amount of a claim that has to be paid by a motorist.