Construction worker can't double as driver: Insurer

NTUC Income won't cover vehicle accident if driver is a foreign construction worker

Construction firms here which have been bending the rules by getting construction workers to double as drivers are in for a rude shock.

Leading local insurer NTUC Income has announced that it will not cover motor vehicle accidents if the driver is a foreign construction worker whose job scope does not include driving.

The move could add to business costs.

Income's move effectively reflects the official position of the authorities: that foreign construction workers who are not designated to be drivers should not drive in the course of their employment.

TOUGH ON FIRMS 
 
'In such a tight labour market, it makes more sense to allow workers to be able to multi-task if they have additional skills that could increase the productivity of the company.'

Association of Small and Medium Enterprises president Chan Chong Beng, who said Income's stance could hit small firms as many use foreign construction workers to double as drivers

Motor insurers make first profit in 5 years

In a first in five years, motor insurers have posted an underwriting profit of $21.2 million in 2011.

The industry turned around from a $48.9 million loss in 2010.

The Straits Times reported that the General Insurance Association (GIA) said the average premium collected from motor insurance rose by 2.5 per cent in 2011 to an all-time high of $1,274.

Average motor premium had been rising year on year since 2006, when it was $867.

This spells good news for motorists, especially the accident-free ones, as premiums are likely to stabilise.

GIA president Derek Teo told the Straits Times that whether premiums will drop depends on the level of competition in the market.

He also said the improved performance of the motor insurance industry is possibly due to measures introduced in recent years to tackle fraudulent claims.

Injury claims, however, remain a concern, especially among young drivers, noted Mr Teo to The Straits Times.

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