Insurance firm DirectAsia.com tackles doubtful and falsified claims with video surveillance systems

A motor insurance company has become the first to offer motorists who install a video surveillance system in their car lower premiums. Not only that, it is subsidising the cost of the system.

New comer DirectAsia.com, an online insurance provider that entered the highly competitive market barely a year ago, says the move is part of its “mission to encourage and reward safe driving”.

It is offering a 4 per cent discount on premiums and 18 to 29 per cent off a digital video camera system that it believes will help determine which party is at fault in an accident.

This, the company says, is the real saving. “When there are contradictory statements regarding the circumstances of an accident, insurance companies unfortunately have to apportion liability,” says DirectAsia.com principal officer Nicolas Faquet.

“This creates a situation where the party who was not at fault still ends up losing part of their no-claim-discount (NCD) and paying a higher renewal premium.

“The camera system’s main objective is to prevent this by providing clear and unquestionable evidence regarding the circumstances of the accident.”

The premium savings are relatively modest. For example, a 30-year-old male with 10 years’ driving experience, 40 per cent NCD and driving a 1.6-litre Mitsubishi Lancer stands to save about $41 on his $1,032 annual premium.

A 40-year-old female with 18 years’ driving experience, 50 per cent NCD and driving a 2.4-litre Hyundai Santa Fe saves $30 on her $749 premium.

And a 50-year-old male with 25 year’s driving experience, 50 per cent NCD and driving a 1.8-litre Toyota Wish stands to cut $31 from his $766 insurance bill.

The cameras by VisionDrive cost between $348 and $548. But DirectAsia.com customers get each camera for $100 less.

Vehicles fitted with camera surveillance systems are relatively rare in Singapore. But they have become commonplace in places such as Europe and the United States, especially among fleet owners.

Mr. Faquet says fleet owners who have installed such systems overseas have managed to reduce their insurance costs by up to 50 per cent.

The system not only guards against falsified claims from third parties, but it also encourages the owner to practice safe driving habits.

Mr. Faquet expects the system to also speed up claims because there will be less time spent on investigations and arguments.

Above all, he says, it will help the insurance industry to penalise the bad (and dishonest) drivers who have long been getting away with laying up to 50 per cent of the blame to innocent parties.

The Korean-made VisionDrive system is equipped with global positioning system and will record details such as date, time, location and speed.

It also has a shock sensor which allows it to store recordings just after a collision or sudden deceleration in a special file.

The system, which is said to consume as little power as the electronic road pricing in-vehicle unit, can also help vehicle owners to nab vandals.

by Christopher Tan, Senior Correspondent