25-3-2024 (SINGAPORE) AIG, a notable motor insurer, has made an unprecedented decision to cease insuring McLaren sports cars for journeys across the Causeway, marking a significant move in response to recent incidents.
This decision follows a crash involving three McLaren vehicles in Johor on October 29, 2023, as the convoy was travelling towards Kluang. Fortunately, no injuries were reported in the incident.
In correspondence to an insurance broker, AIG cited a notable surge in severe accidents involving McLaren vehicles in Malaysia as the reason behind their decision. Effective April 1, 2024, the insurer announced its exemption from liabilities stemming from accidents occurring outside of Singapore.
When approached for comment, AIG declined to provide additional information, leaving McLaren owners taken aback by the sudden development. Mr Marcus Luah, one of the individuals involved in the Johor crash, expressed confusion, stating, “I don’t understand why McLaren is being singled out. There have been many past crashes in Malaysia involving other brands. So I’m a bit puzzled.”
Mr Luah further highlighted the significant disparity in premiums quoted by AIG for policy renewal, indicating a fivefold increase compared to his current premium. Such drastic changes have prompted McLaren owners to seek alternative insurance providers.
Douglas Chia, CEO of insurance broker Eazy, noted that while AIG’s stance is rare, it is not unheard of, particularly for cars exceeding $3 million in value. However, he emphasized that such actions are less common for cars below this price range.
Mr Chong Kah Wei, managing director for McLaren at Eurokars, acknowledged AIG’s decision as a challenging one, driven by their own interests. However, he reassured customers of alternative insurance options through partners like Liberty, while also exploring avenues to mitigate the impact on existing customers.
In response to inquiries, the General Insurance Association of Singapore (GIA) stated that they do not comment on individual members’ practices, citing it as a matter of each insurer’s risk acceptance.
Legal expert Chia Boon Teck underscored insurers’ rights to adjust policies upon renewal but questioned unilateral mid-term changes unless specified in the policy terms.
Highlighting the broader context, not all high-profile McLaren crashes occur in Malaysia. An incident on May 21, 2023, saw a McLaren driver arrested in Singapore after a crash on Keppel Road, reflecting the complex landscape of sports car insurance and safety concerns.
