Think of it as an exercise similar to the search for the petrol station which offers the best pump prices and gifts. TAN Ooi Boon Excerpt of letter from President, GIAS, to The Straits Times dated 3 Sep 2000. Vehicle owners have the option to insure their vehicles at market value, with or without the COE element. For credit prudence, lenders would generally expect the value of insurance cover to be at least equivalent to the loan amount. This is because the sum insured does not impact the premium pricing as much as the public might think.
Most insurance claims are for repairs rather than total loss.
Therefore, the weightage given to premium pricing for the COE component is correspondingly lower since the bulk of the premiums charged goes towards paying partial losses. When the COE value is excluded, the claims settlement would exclude the COE value. The vehicle owner would receive the COE Refund Certificate which he can use within 12 months to either purchase a new vehicle or sell in the open market at a discount. We are currently reviewing the practices of the motor-insurance industry, to better explain to policyholders the different insurance options they have available, how much their vehicle is worth insuring for, and what the premium will be for the different options. SEOW Nee Shek, President, General Insurance Association of Singapore.