Extended warrant for used vehicles/second hand cars in Singapore

The Singapore office of Willis Group Holdings, the global insurance broker, has partnered with Australia’s largest insurer QBE to launch an Extended Warranty product focused at consumers of used vehicles in Singapore via a network of 300+ used vehicle dealers. The new offering called Asia Care Warranty provides protection for defective vehicle claims arising from Singapore’s latest consumer protection act, commonly referred to as the “Lemon Law”.

The so-called “Lemon Law”, which came into effect in Singapore on September 1, aims to protect consumers from retailers who sell defective goods or “lemons”. Under the law, consumers can report a defective item within six months of delivery and if the retailer can’t prove that the defect did not exist at the time of sale, the consumer can then ask for a repair or replacement, and if that’s not possible, a price reduction or refund.

In the used vehicle business, the expected impact of the ‘Lemon Law’ is an increase in claims against dealers. Whilst dealers are implementing steps to record the condition of vehicles prior to sale, it may still prove difficult in the event of a large and potentially reputation-damaging claim.

The new Willis/QBE Asia Care Warranty product can be incorporated into the sale of used vehicles and allows for both dealers and consumers to protect themselves by getting cover against vehicle defects. Currently the product is available to used vehicle dealers across Singapore.

Commenting on the protection provided by the new product, Scott Spaven, Divisional Director, Business Development & Placement for Willis Singapore said, “We have been working closely for some time now with QBE to give Singapore’s used vehicle dealers a long-term solution and the protection they require. Many dealers are now selling the Asia Care Warranty product to support their sales process and to help them manage their exposure to the potential increase in consumer claims. Backed by the strong financial security of QBE Group, our product provides the dealers and consumers the peace of mind that their claims will be paid quickly and efficiently.”

The QBE product can apply to most vehicle makes for a period up to 36 months or 100,000 kilometres and, depending on the extent of cover purchased, it covers all major components.

Commenting on the attraction of the new policy, Fazli Faroog from QBE said, “We have successfully launched this product in other Asian countries and Singapore is the latest country of focus. The internet-based technology our system uses provides claims authorisations and we have already paid claims under the warranties in Singapore.

“With Singapore’s exceptionally high used vehicle sales and the implementation of the ‘Lemon Law’, Willis and QBE’s new product should be a welcome means of protection for both dealers and consumers.”

Willis Group Holdings plc is a leading global insurance broker. Through its subsidiaries, Willis develops and delivers professional insurance, reinsurance, risk management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around the world.  Willis has more than 400 offices in nearly 120 countries, with a global team of approximately 17,000 employees serving clients in virtually every part of the world. Additional information on Willis may be found at www.willis.com.

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