School bus operators may set up own insurance firm to defray rising costs

School bus insurance premiums may have doubled in the past two years, but bus operators said they will absorb the extra costs and maintain fares at the current level due to the gloomy economic outlook next year.



Only ComfortDelGro school bus fares for Tanjong Katong Primary School will be raised by 10 per cent.

However, with the rising insurance premiums bus operators have to fork out, they are considering setting up their own insurance firm to defray costs.

Premiums for private bus operators went up from S$800 to S$2,000 for small buses while for bigger buses, premiums have leapt from between S$1,000 and $2,000, to $4,000 per annum, over the past two years.

"We have worked with the insurance companies and the bus companies to bring down the insurance costs," said Singapore School Transport Association chairperson Wong Ann Lin. "But I think it's not very successful ... I think what is important is that the SSTA should set up its own insurance firm to bring down the costs, that is the most effective way".

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