THE reason given by the Insurance Underwriters' Association for its proposal to increase by 14.3 per cent third party insurance premiums is absurd and irresponsible - all insurance underwriters must be prepared to entertain legitimate claims as their undertaking.
This is their business! It is unfair for those who drive safely all the time to bear additional premium because of someone else's fault.
Moreover, insurance underwriters will not reduce premiums when there is a lesser number of claims for the year before (figures have never been released on this). Why do we need third party insurance while driving a motor vehicle? The answer is to give coverage in claims for serious bodily harm or death to third parties.
The law stipulates we must possess this form of insurance and the law should protect all drivers from raw deals levied on them. This is one area our law reformers should address in the immediate future.
J. LEE Pokfulam
