1. Does every driver need to buy motor insurance?
According to Hong Kong law, every vehicle must be covered by Third Party Liability Insurance. This coverage protects the insured against injuries to a third party, or a third party’s property.
2. Is it enough to buy just Third Party Liability coverage?
Third Party Liability Insurance only covers damage to another person’s vehicle or bodily injury to others. However, Comprehensive Insurance provides all the same coverage as Third Party Liability, but also covers own damage to your own vehicle. It is sensible to obtain Comprehensive Insurance if your car is valuable.
3. Are there any age restrictions when buying Motor Insurance?
Drivers who are under the age of 25, and have less than 2 years of driving experience, are usually considered by insurance companies to be high risk and not accepted. As a result, many young drivers often drive as unnamed drivers under their parents’ insurance coverage. However, even though premiums are cheaper, we do not recommend this practice, as in the event of an accident high excesses may apply, and renewal prices after an accident can be much higher. Furthermore, an undeclared driver is not earning No Claims Bonus / Discount (NCD).
4. What is the No Claims Bonus / Discount (NCD)?
The No Claims Bonus / Discount (NCD) is a discount earned every year that an insured driver does not make a claim. The NCD rewards drivers for safe driving.
5. How is the insurance premium calculated?
The insurance company will base premium on the insured driver(s) age, driving experience, occupation, excess, and other factors to calculate the premium.
6. What is Excess?
The Excess is an amount that is deducted from the total amount paid for an accident by the insurance company. Sometimes, you can select a higher excess, which will result in a lower premium.
7. What are the advantages of insuring under your own name?
By being insured under your own name, you will receive better coverage (including lower excess), and also start earning No Claims Bonus / Discount (NCD) that will make your premium cheaper long term.
8. If a claim towards the costs of repairs (comprehensive insurance) is needed, what should be done?
1. First, the motor owner should report the accident to the insurance company immediately. Then the owner should tow the damaged car to a garage for repair.
2. When the claim is received by the insurance company, the insurer will arrange for a motor surveyor to inspect the damaged car.
3. Upon receipt of the report from the motor surveyor, the insurance company will deduct the excess from the claim and pay the repair cost directly to the garage.
4. If the damaged car is defined as a ‘total loss’, the insurance company will assess the market value of the motor at the time of accident in order to pay the market value of the vehicle.
5. Every letter, claim, writ, summons and process should be reported to the insurance company immediately. The motor owner should not admit liability, negotiate, answer or deal with the opposite party on his own.
9. What should I do if I want to understand more about motor insurance?
You should contact Liberty International Insurance Limited designated insurance service provider, Autotoll Insurance Agent Limited (Insurance Agent Registration no.: 05906195).
Telephone no.: 3182 1333