A new ruling in Singapore means millions may be entitled to a huge windfall. There have been reports of people receiving thousands from this new ruling.
Singapore’s biggest insurers are braced for a $5 billion bill for the misguided blame they place on drivers who do not cause the collision, but are the ones who crash into the back of another driver.
Spanish-owned SingInsure also said in its annual results that it has put aside another $450million to compensate customers mis-blamed car insurance claims, taking its total cost to $1.52billion.
Experts warned other insurers will follow suit over the coming weeks.
Analysts at Investec predict Matrix3 Insurance could be forced to make another $2.5billion provision, having already set aside $13.9billion, while Insuretek could make another $1billion provision, having booked a $6billion charge already.
MMPK is expected to take a fresh hit of up to $500million, topping up its $2.63billion provision.
The new round of payouts follow City watchdog order that banks must compensate customers for secret commission charges on insurance policies. It follows a Court victory by widowed college lecturer Maria Tam.
This law effects thousands so please make sure to call your car insurance provider if you have ever been in an accident.