Car insurance company AIG stops insuring McLaren heading to Malaysia

SINGAPORE – In a rare move, car insurance company AIG has decided not to insure McLaren sports cars when they drive on the causeway.

The move follows a recent crash involving three McLarens as a group of British sports cars were heading south towards Kluang in Johor on October 29, 2023. . There were no injuries in this accident.

In a letter to insurance brokers, AIG said the decision was taken against the backdrop of “an unusually increased frequency of serious accidents involving McLaren vehicles in Malaysia.”

The insurer said it will no longer be liable for losses arising from accidents that occur outside Singapore from April 1, 2024.

AIG declined to comment when contacted by The Straits Times.

The move came as a shock to McLaren’s owners. Marcus Lua, one of the trio involved in the Johor accident, said: “I don’t understand why McLaren is being singled out. There have been many accidents involving other brands in Malaysia in the past. That’s why I’m a little confused.”

Rua, 32, a real estate broker, said AIG quoted him a premium that was “five times” his current insurance renewal premium. “Of course I’m not going back to them. Two times, I understand, but five times!”

Easy, an insurance broker specializing in insurance for luxury cars, said AIG’s position is unusual but not unprecedented.

“It’s not uncommon to see cars costing over $3 million,” said Douglas Chia, Eazy’s chief executive officer. “But it’s not very common in cars below that price range.”

Prices for McLaren’s latest model, the 750S, range from $1.5 million to $1.6 million with certificate of title.

Chia said annual insurance premiums for cars like the McLaren Altura range from $6,000 to $10,000 for regular drivers, with a 50 percent no-claims discount.

“We are in the process of sourcing replacement products for our customers,” he added.

Chong Kar-wai, McLaren Managing Director at multi-brand dealer Eurocars, said: They are doing this for their own benefit. But we also have other insurance partners like Liberty.

“We are working to transition some customers to Liberty and make sure they are taken care of. Meanwhile, we are in discussions with AIG about how we can reduce the impact on existing customers. is.”

In response to inquiries, the General Insurance Association of Singapore (GIA) said it does not comment on the practices of individual members. “This is a matter of each insurance company’s risk acceptance,” said Ho Kai Wen, GIA’s chief executive officer.

Lawyer Chia Bun Teck, co-managing partner at law firm Chia Wong, said: “At the time of renewal of the insurance policy, the insurance company has the right not to cover the drive in Malaysia. I don’t think an insurance company can unilaterally do this in the middle of a policy unless you have given them permission to do so.”

Not all spectacular crashes involving McLaren happen in Malaysia.

On May 21, 2023, the driver of a McLaren was arrested after a vehicle collision on Keppel Road. According to police, the 43-year-old male driver was arrested for failing to render aid. His passenger, a 28-year-old woman, was left alone in the wreck at the scene.

According to Land Transport Authority statistics, there are about 200 McLarens in Singapore.

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