CAR insurers have insisted that it is within their rights to reject policy applications from motorists if they have one too many accident claims within a year.

In most cases, insurers adopt a 'two-strike' rule - they would typically turn away a motorist who has made two or more claims in that period.

Businessman Ong Choon Kee, 53, found this out the hard way.

After making three insurance claims amounting to $27,000 within a year, he was told by insurer American International Group (AIG) that it was dropping him.

His efforts to find another insurer have proven futile, and since drivers need to have motor insurance before they can take to the roads, he is now in a bind.

Driving without proper insurance can result in a fine of up to $1,000 or a jail term of up to three months, or both. Convicted drivers will also be disqualified from driving for at least a year.

Read the full story in Tuesday's edition of The Straits Times.