AIG Singapore Refuses Insurance Coverage for McLaren Cars Driven to Malaysia

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AIG, a prominent motor insurer, has made a significant decision regarding insurance coverage for McLaren sports cars traveling into Malaysia. This determination comes in the wake of a recent accident involving three McLarens in Johor on October 29, 2023. Citing a surge in severe accidents involving McLaren models in Malaysia, AIG has chosen not to extend coverage across the Causeway.

Starting April 1, 2024, AIG has officially stated its non-liability for losses resulting from accidents outside of Singapore, as reported by The Straits Times and The Star. This decision has left McLaren owners bewildered, questioning the rationale behind singling out McLaren vehicles for exclusion.

Marcus Luah, one of the drivers involved in the Johor crash, expressed surprise at AIG's decision. He noted that AIG offered him a significantly higher premium, prompting him to seek alternative insurance options.

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While uncommon, such exclusions are not unprecedented for high-end vehicles, according to Douglas Chia, CEO of insurance broker Eazy. Nevertheless, AIG's move has sparked concerns among McLaren owners, prompting dealerships like Eurokars to explore alternative insurance providers to lessen the impact on their clientele.

The General Insurance Association of Singapore (GIA) declined to comment on individual member practices, emphasizing insurers' autonomy in determining risk acceptance criteria. Legal experts highlighted that insurers generally possess the right to decline coverage for specific risks during policy renewal. However, making unilateral changes mid-stream may raise legal questions without clear policy provisions.

AIG's decision coincides with a series of incidents involving McLaren vehicles, including a notable crash on Keppel Road in Singapore in May 2023. Despite these occurrences, McLaren remains a popular choice in Singapore, with approximately 200 McLarens registered in the country, according to Land Transport Authority statistics.

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