Insurers shouldn't pay out claims too readily

A few years ago, I experienced an incident similar to Mr Jimmy Lauw Thian Chye's ("Why was claim paid out when car was not damaged?"; Nov 16).

A bigger car reversed into my car and damaged the left rear door which was subsequently replaced.

The other owner, a younger man, apologised to me and suggested that we settle our own repairs without claiming from our insurance policies.

His car was hardly damaged as its spare tyre was mounted externally, at the rear.

I claimed from my insurance company while the other owner engaged a lawyer to make a claim against me.

My insurance company's claims executive called me to inform me that the insurer had agreed to the payout to the other party even after my explanation.

The reason that many claims are paid out by insurance companies is very simple: They do not want to spend money on costly litigation. Any payout can be recovered from clients' increased premiums over the next few years.

Lim Jit Chaing