In Parliament
Written Reply to Parliamentary Question on Revocation of Car Insurance Policy for Non-Payment of Insurance Premium Instalments
3 July 2023
This article has been migrated from an earlier version of the site and may display formatting inconsistencies.
Mr Lim Biow Chuan asked the Minister for Transport
a. under current legislation, whether motor insurance companies are allowed to revoke a car insurance policy when the instalments for the insurance premium are unpaid; and
b. whether this will result in a motorist driving a car without insurance cover.
Reply by Minister for Transport S Iswaran:
1. Insurance companies may cancel a motor insurance policy if the policyholder breaches any terms and conditions, including non-payment of insurance premium instalments.
2. If the policyholder fails to make payment despite reminders or within the grace period given by the insurance company, the insurance company may decide to cancel the policy.
3. Any person found guilty of driving an uninsured vehicle may be fined up to $1,000 or jailed up to three months or both. In addition, the offender will be disqualified from driving for a period of 12 months.