I received my car in Oct 2016 and insured it through AXA. I just received a letter a few days ago from AXA in which they stated that my car is insufficiently insured due to the new FRT provisions. Has anyone else received this letter? I'm guessing people have. What are the implications? Do I have to pay double the insurance fee now? What if I don't?
I keep calling them but no one picks up.
If you don't pay the additional premium, AXA will only cover you up to the amount you paid for your car (i.e price of the car without FRT) in the event your car is stolen or totaled. The additional premium to cover your car + FRT will not be doubled, at least what I have been quoted isn't. You can get a quote
here for a rough idea of what the additional premium will cost you (subtract what you already paid from the quoted premium).
I called them at 4pm on a weekday and my call was promptly answered. In case you still can't get through to them, I have attached an email they sent me which should address your concerns. I hope this helps.
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I refer to your enquiry today. We are introducing an optional add-on benefit ‘Care Free From Tax Jumps’ to ensure your car is insured sufficiently to cover the change in First Registration Tax (FRT). With this new optional add-on benefit, we will cover your Tesla up to the value reflecting the change of the FRT concession under the ‘New for Old Replacement’ benefit. Below illustrative examples are for reference only.
Illustrative example 1
Mr. Chan takes out an InsureMyTesla policy in January 2017.
Model: XP100D
Original net purchase price: HK$1,329,000
Plan: Custom Plan
Five months after taking out the policy, Mr. Chan’s car is confirmed stolen. At that time, the new car value [i.e. the sum of original net purchase price plus the first registration tax (FRT) in 2017] has increased to HK$2,557,350 due to the change in FRT. As the net purchase price of the replacement car cannot exceed the original net purchase price of the insured car, Mr. Chan’s compensation under the policy’s “New For Old” benefit will be HK$1,329,000.
How can Care Free from Tax Jumps provide enough protection?
With this add-on benefit, Mr. Chan will be compensated a new replacement car of the same make and model available in Hong Kong SAR, not exceeding HK$2,557,350*.
Illustrative example 2
Ms. Wong takes out an InsureMyTesla policy in March 2016.
Model: S90D
Original net purchase price: HK$738,200
Plan: Custom Plan
Fourteen months after taking out the policy, Ms. Wong suffered a total loss. Her reimbursement amount under the policy’s “New For Old” benefit will be HK$590,560 (80% of original net purchase price HK$738,200).
How can Care Free from Tax Jumps provide enough protection?
The new car value has increased to HK$1,287,130 due to the change in FRT. With this add-on benefit, Wong’s reimbursement amount will be HK$1,029,704 (80% of HK$1,287,130)*.
*Subject otherwise to the terms and condition of the policy
With this new optional add-on benefit, we will cover your Tesla up to the value reflecting the change of the FRT concession under the ‘New for Old Replacement’ benefit. Please find attached a specimen add-on benefit ‘Care Free From Tax Jumps’ endorsement for your reference.
We hope you understand that you chose not to agree with the use and provision of your personal data for direct marketing purposes as set out in the Personal Information Collection Statement and not wish to receive any promotional and direct marketing materials. This is the reason why we can only send out the letter with limited information and asking for return call.
If you choose to accept the add-on benefit of ‘
Care Free From Tax Jumps’ to be incorporated to your
InsureMyTesla policy, simply complete and sign the attached credit card authorisation form, and return a scanned copy to us by email at
[email protected] on or before 21 May 2017. If you choose to pay the additional premium by cheque, please mail it to the following address, stating your policy number on the back of the cheque:
InsureMyTesla
AXA General Insurance Hong Kong Limited
23/F, One Kowloon, 1 Wang Yuen Street, Kowloon Bay, Kowloon, Hong Kong
Upon receipt of the premium payment from you, we will email to you the endorsement which will be effective
from 22 May 2017 until the policy expiry date.
We thank you for your continued support and look forward to serving you in the future. If you have any queries, please call us on (852) 2867 8708 from 9:00 am to 5:30 pm Monday to Friday or email us at
[email protected].