- Published: Wednesday, 03 May 2017 21:30
FWD offers bike insurance with features attractive to younger riders
SINGAPORE - Local direct-to-consumer insurance provider, FWD, is now offering motorcycle insurance with some unique features and benefits for riders, and it's less chronologically-advanced ones that stand to benefit.
Announced on May 3, FWD will offer the industry standard of three choices of coverage - Third Party, Third Party Fire and Theft, and Comprehensive.
Where FWD differs is that it will offer a ‘Lifetime NCD Guarantee at NCD 20 percent’. NCD, or No Claims Discount, is an extra discount applied if you stay out of trouble, or at least, don’t make any claims to your policy. 10 percent is applicable each year for a maximum of 20 percent for motorcycles (it’s 50 percent for cars).
The NCD Guarantee means that under FWD’s policy, your discount is preserved even if you make a claim and are at fault, as stated in the company’s policy wording: “However, if You have 20% NCD in Your existing Policy, Your 20% NCD is protected regardless of the number of “at fault” claims made against this Policy for as long as You are insured by FWD.”
Of course you have to have a 20 percent NCD to begin with, so new 2B riders or those who made recent claims will not be eligible.
FWD also offers a two-year insurance plan, which costs more upfront but theoretically stops your insurance premium from going up - typically if you’ve had an accident then your next year of coverage will be more expensive. FWD also offers a young rider (22-years and below) excess waiver for an additional fee.
All this sounds like it’s a good deal for those who are probably more likely to have an accident, and the highest risk group for motorcycle riders is younger riders . A study showed that from 2000 to 2004, 65 percent of motorcycle fatalities came from those aged under 30.
Young motorcyclists, being accident prone, are amongst the most expensive motorists to insure. A quote for a 21-year-old with three years’ experience on a 125cc scooter is more than $1,000 for a year’s comprehensive insurance from an established insurer.
Motorcycle makers, like BMW with its G 310 R, have been releasing affordable models targeted at new riders
Direct Asia avoids insuring riders under the age of 25 altogether, saying on its website, “Statistically, young drivers tend to have more accidents. At the moment, we do not insure very young drivers, but we do strive to review our policies from time to time.”
Therefore a rider who is aged under 25 and is lucky or skilled enough to have a 20 percent NCD stands to benefit in terms of savings on FWD’s policy.
It's fortuitous since the rise of app-driven services like Uber Eats rely on typically younger motorcycle couriers - it's also been mooted that the rise in younger riders using these apps for work has been a factor in the rise of motorcycle COEs. While FWD has clarified that it doesn't provide insurance coverage for commercial purposes - since being employed by UberEats is a form of employment - it still stands that younger riders are a target demographic for FWD (Editor: Emphasis ours, FWD itself says that its products are for all motorcyclists in general). Direct Asia also does not cover motorcycles used for delivery purposes, as stated on its website.
The full breakdown of coverage, and instant quote/purchase, is available at www.fwd.com.sg/motorcycle-insurance/.
FWD is the newest direct-to-consumer insurance agency in Singapore, and goes up, directly, against Direct Asia, in the direct-to-consumer motorcycle insurance line. The idea of ‘direct’ insurance is one where the insurance agent, a middleman, is cut out of the process thereby offering more affordable premiums.
FWD, which began business here in April 2016, also offers life, travel, automobile, personal accident and maid insurance. FWD is owned by FWD Group, which has a presence across asia. It’s the insurance arm of investment conglomerate Pacific Century Group, which is owned by Richard Li, son of Li Ka Shing.
Automobile direct insurance has a few more players, including Etiqa and Budget Direct, while traditional providers like Income also have identical services where you can apply for insurance online instantly.