Motor insurer AIG has announced that it will not provide insurance coverage for McLaren sports cars when driven across the Causeway into Malaysia. This decision follows a recent crash involving three McLarens in Johor on Oct 29, 2023, prompting AIG to cite an increase in severe accidents involving McLaren models in Malaysia.
According to The Straits Times and reported by The Star, starting April 1, 2024, AIG stated that it will not be liable for losses arising from accidents outside of Singapore. The decision has left McLaren owners shocked and puzzled, with some expressing confusion over why McLaren vehicles are being singled out.
Marcus Luah, one of the drivers involved in the Johor crash, expressed bewilderment at the decision and mentioned that AIG quoted him a premium that was significantly higher than his current one, prompting him to seek alternatives.
While rare, such decisions are not unheard of for high-end cars, according to insurance broker Eazy CEO Douglas Chia. However, AIG’s move has raised concerns among McLaren owners, leading dealerships like Eurokars to explore alternative insurance partners to mitigate the impact on existing customers.
The General Insurance Association of Singapore (GIA) refrained from commenting on individual members’ practices, stating that insurers determine their risk acceptance criteria. Meanwhile, legal experts have pointed out that insurers generally have the right to decline coverage for certain risks upon policy renewal, but unilateral changes mid-stream may not be permissible without policy provisions.
The decision by AIG comes amidst incidents involving McLaren vehicles, including a crash on Keppel Road in Singapore in May 2023. Despite such occurrences, McLaren remains a popular choice in Singapore, with approximately 200 McLarens registered in the country, according to Land Transport Authority statistics.