Doubts, Questions. Answered
Frequently Asked Questions.
The most common questions from our community so you have clarity and confidence to move forward. If you’re unable to find what you’re looking for, our team is always here to help.
All about NCD
What is NCD? How does it work?
A No-Claim Discount (‘NCD’) is an incentive given to you if no claim has been made under your policy for a year or more with your current/existing insurer. It reduces the premium you have to pay for the following year. This is your insurer’s way of recognising and rewarding you for having been a careful driver. The rate of NCD depends on your type of vehicle (private or commercial/motorcycle) and the period of insurance with no claim.
The following table shows a common method to calculate the rate of NCD.
| Private Car Policies | ||
| 1 year | 10% | |
| 2 years | 20% | |
| 3 years | 30% | |
| 4 years | 40% | |
| 5 years or longer | 50% | |
| Commercial Vehicle & Motorcycle Policies | ||
| 1 year | 10% | |
| 2 years | 15% | |
| 3 years or longer | 20% |
NCD is just one of the factors affecting the premium. Premium quoted by an insurer based on a higher NCD would not necessarily be lower than that quoted by another insurer based on a lower NCD in a competitive market. Consumers are advised to shop around and compare premium rates before buying.
If I make a claim, will I automatically lose my NCD?
Not necessarily. Your NCD may not be affected if you are found totally not at fault in an accident involving another vehicle. In all other cases, your NCD may be affected.
If there is a claim made under the policy, your NCD will be reduced as follows.
|
Private Car Policies |
|
|
|
50% |
20% |
|
|
40% |
10% |
|
|
30% and under + |
0% |
|
|
Commercial Vehicle & Motorcycle Policies |
Current NCD |
NCD after 1 Claim |
|
20%/15%/10% |
0% |
|
If you make more than one claim in a year, your NCD will be reduced to 0%.
Please check with your insurer whether your NCD will be affected.
Some insurers do offer a protection on your NCD in the event of a claim. Please refer to question “Can I insure against the loss of my NCD?” to find out more.
Is my NCD transferable?
In principle, your NCD applies to you and not to your vehicle. For example, if you sell your vehicle and buy another one, you will retain your NCD. However, if you own more than one vehicle, you might have a different NCD for each vehicle. You should check the details with your insurer, but generally:
Your NCD can-
- Be transferred if you decide to switch insurer.
- Be transferred to another vehicle you own, but it cannot be applied to more than one vehicle at any point in time. For example, if you have accumulated a 30% NCD while using one vehicle, it does not follow that the same NCD applies to any other vehicle that you own or decide to buy. In other words, you will have to earn the NCD for each vehicle separately.
Your NCD cannot –
Be transferred to another person, except for your spouse and within the current insurer only. Transfer of NCD to your spouse will not be applicable if you renew your policy with another insurer.
Will I lose my NCD if there is a break in ownership of my vehicle?
Most insurers in Singapore will allow you to keep your NCD should there be a break in vehicle ownership for up to 24 months. Some insurers set the timeframe at 12 months. You should contact your insurer for details.
For more detailed FAQ, visit the GIA website: Click here
Claiming Against Foreign Motorists
The process of claiming against the foreign-registered vehicle?
You are required to make a Traffic Police report as soon as possible or within 24 hours of the accident involving a foreign-registered vehicle. A written report can be made at any police station or Neighbourhood Police Post.
If you have a comprehensive motor insurance policy, you are advised to claim against your own policy in instances of accidents with foreign motorists either in Singapore or Malaysia. This will save you the inconvenience of making a claim against motorists from another country.
But if you wish to make a third-party motor claim against an insurer in Malaysia, you are advised to approach the insurer in Malaysia, and submit to the concerned insurer in Malaysia the following documents:
- Claimant’s vehicle registration card (photocopy);
- Certificate of Insurance, cover note or policy schedule (photocopy);
- Identity card (photocopy);
- Police report;
- A police sketch plan and key (if available);
- Result of police investigation (if available); and
- Proof of losses incurred.
- Additional documents that may need to be submitted include an adjuster’s report with original photographs, a repair bill and proof of payment, a rental-car bill (if a car was rented), as well as proof of payment and bills and receipt for other expenses incurred.
If your claim against the motorist in Malaysia is unsuccessful after all means have been exhausted, you can approach the GIA’s Malaysian counterpart, Persatuan Insurans Am Malaysia (PIAM) for assistance (with all evidence produced).
Persatuan Insurans Am Malaysia (PIAM)
Email: pic@piam.org.my
Phone: 03-2274 7399
Website:https://piam.org.my/
Do claims involving foreign-registered vehicles take longer?
The claims process may take longer if you decide to claim against the insurer of the Malaysian motorist, given that you are claiming against an insurer from another jurisdiction.
For more detailed FAQ, visit the GIA website: Click here
What happens after an Accident?
STEPS TO TAKE AFTER A CAR ACCIDENT
You are required to make a Traffic Police report as soon as possible or within 24 hours of the accident involving a foreign-registered vehicle. A written report can be made at any police station or Neighbourhood Police Post.
If you have a comprehensive motor insurance policy, you are advised to claim against your own policy in instances of accidents with foreign motorists either in Singapore or Malaysia. This will save you the inconvenience of making a claim against motorists from another country.
But if you wish to make a third-party motor claim against an insurer in Malaysia, you are advised to approach the insurer in Malaysia, and submit to the concerned insurer in Malaysia the following documents:
- Claimant’s vehicle registration card (photocopy);
- Certificate of Insurance, cover note or policy schedule (photocopy);
- Identity card (photocopy);
- Police report;
- A police sketch plan and key (if available);
- Result of police investigation (if available); and
- Proof of losses incurred.
- Additional documents that may need to be submitted include an adjuster’s report with original photographs, a repair bill and proof of payment, a rental-car bill (if a car was rented), as well as proof of payment and bills and receipt for other expenses incurred.
If your claim against the motorist in Malaysia is unsuccessful after all means have been exhausted, you can approach the GIA’s Malaysian counterpart, Persatuan Insurans Am Malaysia (PIAM) for assistance (with all evidence produced).
Persatuan Insurans Am Malaysia (PIAM)
Email: pic@piam.org.my
Phone: 03-2274 7399
Website:https://piam.org.my/
How can you make sure your workshop is not charging more than it should?
You are advised that following an accident, you should go to an authorised workshop of your insurer for repairs (even if you are claiming against the other party).
You are strongly advised not to have any dealings with unauthorised tow-truck operators at the scene of accident. You are also advised not to send your damaged vehicle to any unauthorised repair workshop to avoid complications of your claim.
Please exercise caution when signing any documents you are presented with.
What to do in the event of an accident outside Singapore?
You should make a report at the nearest Police Station in the country the accident occurred. If you require advice and assistance, please call your insurance company.
Do I need to report an accident if a private settlement is made?
Yes, always report all accidents to your insurer even if you have made a private settlement. This is for recording purposes because you cannot be fully certain that the other party will not file a claim against you later. By not reporting the accident, your claim may be prejudiced or declined later by insurers.
For more detailed FAQ, visit the GIA website: Click here
Motor Claims Framework
What follow-up action should a motorist take if another motorist offers to compensate him for damages caused to his vehicle at the point of the accident?
Even if the parties agree to a private settlement, a report to the respective insurers is still required for record purposes.
The MCF prescribes that the motorists need to take down the other party’s particulars (NRIC, name, telephone number, address, insurer & digital photo of accident) after an accident. What happens if the other party refuses to give any of the details and stops me from taking any photographs? Can we still report the accident to our insurer?
If the other motorist is not cooperative in furnishing his particulars, you should still take down the vehicle registration number. The GIA reminds all motorists that according to the MCF all motorists now have to report to their insurers any accident, no matter how small.
The MCF states that if we are involved in accident, major or minor, we need to follow 3 steps that were issued by the GIA. Being a rider, if I was injured in an accident, it would be impossible for me to follow the 3 steps that were given. By not complying with these 3 steps could my claim be invalid?
The GIA introduces the 3 steps reporting process to make it easy for drivers to remember what to do in an accident. If the circumstances are such that it is impossible for the motorist to follow the 3 steps, insurers will give special consideration to the claim. Just as a reminder to everyone, the three steps are:
1) Exchange particulars and take note of vehicle numbers – riders can do this;
2) Call your insurer’s hotline for a tow truck – this may be applicable to riders in some cases;
3) Report and take your vehicle, damaged or not, to the approved reporting centre or authorized workshop within 24 hours – riders can do this in most cases.
Under the new MCF, what happens if the accident involves a foreign Vehicle (e.g. Malaysian registered Car) and the driver refuses to exchange particulars?
If the other motorist is not cooperative in furnishing his particulars, the owner should still take down the vehicle registration number. For an accident involving a Malaysian vehicle, a police report is required.
If I have an accident and the other driver bangs my car in the rear, can I go back to my own designated workshop after reporting to my own insurance company within 24 hours?
Please refer to your own insurer on the terms and conditions of the policy you purchased from them.
Is it compulsory for me to go back to my authorised workshop even though it is not my fault?
Please refer to your own insurer on the terms and conditions of the policy you purchased from them.
If the accident happens on the weekend, does the 24 hours rule still apply?
The MCF states that the end of the next working day is the timeframe for reporting – meaning if the accident happens on a Saturday night, then Monday would be the next working day.
Do I need to report an accident if a private settlement is made?
Yes, always report all accidents to your insurer even if you have made a private settlement. This is for recording purposes because you cannot be fully certain that the other party will not file a claim against you later. By not reporting the accident, your claim may be prejudiced or declined later by insurers.
If I have a serious accident in Malaysia and have problems towing the car back to Singapore, will I be penalised when I am unable to report within the stipulated 24 hours?
You will not be penalised for late reporting if you have a valid reason like the example cited above.
I understand that every accident must now be reported. Would it be possible for some kind of memorandum of agreement to be signed by both parties in very minor accidents where two parties agree to settle on their own?
A memorandum of agreement would be a private matter between the two parties, but it would not alter the requirement under the MCF that both parties now have to make a report to their insurers. A memorandum of agreement should not supercede or be regarded as a substitute for this process.
I am a new driver and I heard most of my friends and colleagues said that once you reported a minor accident to my insured policy company, your premium on next renewal would be heavily increased. If so, I would think that most motorists would not report minor accidents based on MCF method; they would prefer to settle privately. Please advise.
The GIA reminds all motorists it is now their duty to report all accidents, no matter how small and regardless of whether or not there has been damage to their vehicle. The consequent impact on NCD and premiums are not affected by the MCF and will be determined by the outcome of the insurer’s investigations into the accident.
For more detailed FAQ, visit the GIA website: Click here
Third Party Claims
Can my insurer assist me to file a third party claim?
As an industry practice, an insurer will not act on your behalf to file a third party claim, but can assist you to file a third party claim via their approved reporting centres.
Therefore, you are encouraged to lodge a damage claim under your own policy. After you have been indemnified, your insurer will commence recovery against the other driver’s insurer if it can be proven that the driver is fully liable for the accident. Your insurer will not dock your No Claim Discount at next renewal if recovery is successful.
Can the GIA help claimants who encounter difficulties when filing damage claims with third party insurers.
The GIA can only assist claimants by providing guidance and instructions on what they can do or where they can seek recourse under such circumstances. We do not provide mediation services between consumers and our member companies. Instead, claimants should approach the insurer concerned directly, or the Financial Industry Disputes Resolution Centre Ltd (FIDReC)
Why are the third party claim costs so high despite the car looking in good condition?
High third party claim costs could be due to one of the following reasons:
- There may be hidden damage not visible externally.
- Damaged items are replaced instead of repaired for newer cars.
- Besides the repair costs, the claim costs could include legal fees, loss of use and third party survey fees.
If I have made a third party claim, how can I ensure that my claim is settled faster?
Generally, third-party damage claims are settled within six months. For more complex cases, insurers will need more time for investigations.
You can assist in speeding up your claim processing by providing the following to the insurer:
- Accident report, Police report
- Information regarding the accident scene, including photographs, videos and other evidence
- Any other documents supporting your claim
You may contact the insurer involved to follow up on the status of your claim. If the processing time exceeds the usual period, it is likely that the insurer is further investigating the case before deciding on your claim.
I have appointed my lawyer/workshop/representative to handle my third-party claim. How do I find out more details about the settlement sum of my claim against a third party?
You may contact your appointed representative. They will be able to provide you with details of the settlement sum.
For more detailed FAQ, visit the GIA website: Click here