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Motor insurers need more protection against fraud, says High Court

SINGAPORE — Calling for more safeguards against motor insurance fraud, a High Court judge ordered an investigation into an accident, even though both parties involved had agreed on how the liability would be settled, saying there were “serious questions to be answered”.

SINGAPORE — Calling for more safeguards against motor insurance fraud, a High Court judge ordered an investigation into an accident, even though both parties involved had agreed on how the liability would be settled, saying there were “serious questions to be answered”.

Issuing his grounds for referring the matter to the Attorney-General yesterday, Justice Choo Han Teck said motor insurers may have to do more to guard against exaggerated claims or those without merit and that it would be “sensible” for them to have a common database to track and trace repeat claims.

As the law generally holds the party whose vehicle was hit from the rear blameless, or nearly so, claims without merit are difficult for lawyers to detect and for the courts to spot, he said.

The motor accident in question occurred on May 26, 2010, when the defendant Lee Jee’s bus collided into the rear of Mr Tan Poh Weng Andy’s company van, which in turn slammed into the car in front.

Mr Tan had claimed 100 per cent liability against Lee, but later accepted the offer of 95 per cent liability. Damages were to be assessed.

But Justice Choo declined to approve the settlement, citing several developments that he said warranted an investigation.

At around April this year, Lee discovered that Mr Tan had been in six accidents between 2006 and last year, with one every year except 2009. He had previously been aware of only three accidents involving Mr Tan, 42, an undischarged bankrupt who is currently unemployed.

“It may indeed be truly coincidental for the plaintiff to have such bad luck, but the circumstances indicate that a fuller inquiry might be necessary. Thus, I do not think that the court should endorse the settlement until then,” Justice Choo wrote.

“The defendant may not be blamed for wishing to settle because it might not be financially sensible to litigate. However, there are serious questions to be answered, which perhaps the defendant has no means of investigating.”

It was also not known why Mr Tan had changed his name in 2011 — he was previously known as Tan Poh Kim — and how many times he might have done so.

Considering his history and a medical report of his injury, which included spondylolisthesis, a spinal condition, the judge said his claim “might be exaggerated or his injuries unrelated to the accident in question”.

“Without making any assumptions but, for completeness”, Justice Choo added that it may also be relevant to look into the details and circumstances of all defendants involved in various accidents with Mr Tan.

When contacted yesterday, Mr Tan’s lawyers from Clifford Law said: “We are surprised at the judge’s decision. We are studying the decision and grounds of decision carefully and we believe our client’s case is genuine.”

A spokesman from the Attorney-General’s Chambers said yesterday it had not received any referral from the court on this matter.

“Once any referral is received, we will study it carefully,” she said.

Mr Lee’s lawyers could not be reached by press time.

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