| Motor Insurance - Comprehensive |
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In addition to being covered for damage to others' vehicles or property, you will also be insured for damage to your own car, irrespective of whether or not you are to blame. Be aware of the HK practice of not paying ‘Betterment’. In theory we are not supposed to be better off as the result of making a claim. With few exceptions insurers typically take this to an extreme. For example if, following an accident, you need to replace a rear bumperbar/fender and there are no second hand replacements available, your repairer fits a new bumper. So, if a new bumper costs HKD30,000 and a second hand bumper HKD15,000, the insurer will charge you HKD15,000, the amount by which you are supposedly ‘Better Off’! When it comes to being given a No Claim Discount or Bonus in Hong Kong, few insurers will agree to this if you have not owned a car in the past year. If you have owned a car in the past year, or still own a car but keep it abroad to use like a rental vehicle, the insurer will likely agree to reduce your premium – IF you can provide a letter from the previous/current insurer, showing how many years in the past 5 you have been claim free. The discount rules are: 5 years claim free – 60% off 4 years claim free – 50% off 3 years claim free – 40% off 2 years claim free – 30% off 1 year claim free – 20% off It is possible for you to transfer your 'no claim entitlement' to your spouse or your company, or vice versa. As soon as you inform an insurer of a claim or a likely claim, the market practice is to remove your No Claim Bonus entitlement and only to return this to you after there has finally been a court case to determine who was at fault. If the fault is your own and your policy carries ‘No Claim Protection’ if the total claim amount is under HKD50,000 or so, you will not normally lose your No Claim Bonus. It is also possible to take the compulsory Third Party motor cover in HK and take the ‘Own Damage’ cover from an overseas insurer. Do note: The excesses accumulate. So say you leave your car to a young restaurant attendant to park. If he/she has an accident, say hitting a post in the parking area, you will find the insurer will add: - Own damage/General Excess - Young (under 25) Excess - Inexperienced (under 2 years) Excess and - Third Party Property Damage Excess if damage is done to the post |