An acquaintance rented a family car that was due for scrapping soon because its COE was expiring. While driving in Johor Bahru, Malaysia, the car was involved in an accident. It was the last car in a chain collision involving two other vehicles. The car in front, a Malaysian Proton, braked suddenly, leaving little time to stop.

The rental contract stated that the excess is $2,000 for third-party and/or own damage, with an additional $2,000 excess for accidents or claims outside Singapore. The rental owner, however, claimed a total of $8,000, breaking it down as $2,000 for third-party, $2,000 for own damage, and doubling these amounts for overseas claims, saying the insurance imposes double for more complex cases outside Singapore.

Worried that the owner might take legal action, my acquaintance quickly paid the amount. The car was repaired at a workshop in Malaysia, known to the rental owner. After the repair, we noticed that the car was fitted with sports rims and was in excellent condition. However, the rental owner has refused to provide any repair invoices to show the actual costs, even months after the accident.

Friends later told my acquaintance that the amount paid seemed unreasonable, especially since he shouldn’t have been charged for the own-damage excess, or the doubled overseas excess. He sought legal advice and was informed that he was indeed overcharged. The rental owner should have only claimed $2,000 for third-party and $2,000 for the overseas excess, totaling $4,000.

Can anyone confirm that the owner should not have claimed the own-damage excess in this case? Thank you.