SINGAPORE: Operators of tour buses to Malaysia may increase fares to cope with rising costs.
This follows complaints that insurance premiums have gone up by 10 to 40 per cent because of the gradual monopoly enjoyed by one insurance company which services these operators.
Mr Simon Foo rents a coach to ferry tourists to Malaysia.
He said insurance premiums for fellow drivers have gone up from S$7,000 to S$9,000.
And he expects to fork out S$14,000 to S$15,000 for his policy because he was not accident-free last year.
He said: "One of them starts from S$7,000 and that is if it's accident-free. The following year, it went up to S$9,000. For the coach I'm driving, I've not got a quote but it should be around S$14,000 to S$15,000."
He said drivers are finding it hard to cope with the increase and are considering raising fares.
Major tour operators also face a similar situation.
President Elson Yap of Express Bus Agencies Association said: "When the coach goes to Malaysia, it involves two different countries. So the policy that you buy has to insure not just in Singapore, but also in Malaysia. Right now, we only have one company willing to do so."
