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Breaking news!! on motor insurance from Aviva.
A report floated in one of the car forum regarding one of Aviva’s insured trying to file a claim on Aviva.
Aviva has since responsed to the insurer officially, rejecting all claims with the reasons of modifications to ones vehicle. Read letter here.
I did a quick check on Aviva website shows that there is an option asking whether your vehicle have been modified from the manufacturer’s standard specifications? This includes all LTA approved modifications.
Having studied this particular case reference, one has to be very careful especially if you have bought your car from a second hand car dealer as one will not be able to know what kind of modifications have been done by previous owner. Further to this, the next question raised? What kind of modifications are deem un-authorized? Does installing a fuel saving device considered one? Does installing a car camera system considered modifications? How about changing to a sparkling sets of sport rims? This is a very very grey area and I think Aviva or any insurance companies should address to should they decide to enforce this clause.
From the letter to the unfortunate owner, Aviva offered to refund full premium due to this matter. This is something unheard of in the insurance industry. Which in my view is bad practice. It shows that insurers can have the power to withdraw any contract between the insured if they deem not that a financial loss will be incurred. That will be a win – win business for all insurance companies. And we always thought by paying a premium, the insurance companies will take up the risk and leverage it across. This basic principle is lost.