Insuring against drink driving

Insurance firms plan to get tough with repeat offenders

Ansley Ng
ansley@mediacorp.com.sg

Motorists with repeat convictions for drink driving could soon find it a lot more difficult, or expensive, to own a set of wheels.
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Today understands that the General Insurance Association of Singapore (GIA), together with the Traffic Police, will be unveiling an innovative new offensive against errant drink drivers at the launch of this year's anti-drink driving campaign on Friday.
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The GIA, a grouping of 29 insurance companies here, declined to confirm details, however, a source close to the initiative told Today: "GIA will be unveiling tough, if not draconian, new measures against drink drivers."
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Today understands that insurers are preparing to make it more difficult for recalcitrant drink drivers to buy motor insurance.
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Without motor insurance, which has to be renewed each year, drivers will not be allowed to renew their road tax, which means they cannot drive their own cars on the roads.
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Currently, first-time drink drivers are usually fined and disqualified from driving.
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Repeat offenders face a mandatory jail term and ban, but they can continue driving after the ban if they pass a driving test.
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To keep recalcitrant drink drivers off the road, insurers here could resort to significantly raising their motor insurance premiums.
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Another possibility: their insurance policy might not be renewed, or even revoked.
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But why not take things a step further?
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Currently, drivers have to declare when applying for motor insurance if they have been convicted of offences. Now, some drivers can abuse the system with false declarations, said an insurance company official.
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Speaking on condition of anonymity, he suggested that insurers ought to be allowed to check with the Traffic Police if a potential client has had any drink driving convictions.
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This would help the insurer "accurately define the risk" and set the appropriate premium for that policy, the official explained.
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Despite a step-up in enforcement and the introduction of a variety of soft measures, such as nightspots providing car jockey services to customers, the number of drink driving cases here has continued to rise.
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Last year, 3,730 people were arrested, with 25 killed in related accidents. In 2005, 3,650 were caught and 20 people were killed.
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However, some motorists did not think clamping down by playing with insurance policies would work.
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Moreover, there could be other ways to get around the system, pointed out a food-and-beverage manager who was caught for drink-driving twice.
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"I may not be able to buy a car but I can always get my family members or friends to do it for me. It's not a problem for me," said the 31-year-old, who was jailed for a month last year for his second conviction, and is still serving a five-year driving ban.
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Nevertheless, he said: "I will apply for a licence when the ban is up, but I am never going to drink and drive again."